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International Expansion & Key Newhires

Press Release

GroundWork Continues Momentum With Broad Customer Traction, International Expansion and Key New Hires

SAN FRANCISCO, July 18, 2006 — GroundWork Open Source, Inc., the leader in open source-based IT operations management, today announced a series of major company milestones achieved in 2006. GroundWork continued to exceed its sales target of 25 new paying customers per quarter for GroundWork Monitor Professional, the company's flagship IT infrastructure and network monitoring solution. Additionally, thousands of organizations have downloaded GroundWork Monitor Open Source since its public release in February.

GroundWork also announced plans to kick off an international presence with new offices in Germany and the United Kingdom.

"In 2006, GroundWork truly disrupted the economics of how organizations acquire network and infrastructure monitoring solutions," said Ranga Rangachari, CEO of GroundWork. "By integrating best-of-breed open source technologies, we've finally given the market a way to circumvent the incredibly expensive, closed-source, proprietary solutions that have held them hostage for so long. As a result, GroundWork has secured the largest customer installed base of any vendor in our category, and the demand for our product is showing no signs of slowing down."

In addition to broad customer traction and international sales expansion, GroundWork made a series of strategic hires in 2006. The company added three IT veterans to the executive staff, including CTO Craig Thomas, VP of Product Management and Marketing Tony Barbagallo and VP of Engineering Stuart Thompto.

Also in 2006, GroundWork was selected as the sole "Open Source Network Monitoring" provider at InteropNet, the event network for Interop Las Vegas. With the responsibility of monitoring large mission critical infrastructures as well as InteropNet's extreme interoperability requirements, Interop served as the ultimate proving ground for GroundWork's solution.

Recent customer wins included industry-leading organizations, such as electronic evidence discovery company Stratify, Inc., and broadband infrastructure solutions provider Harmonic (Nasdaq: HLIT).

"It just didn't make sense to spend hundreds of thousands of dollars on one of those complex, proprietary solutions with all the bells and whistles that we wouldn't even use," said Colin Creitz, senior professional services engineer at Stratify. "We realized that we could get exactly what we needed out of GroundWork Monitor Professional. Plus, it's reassuring to now have the option of looking at the source code. I can get under the hood and see what's going on if there's a problem. The big proprietary tools simply do not provide that option."

About GroundWork

San Francisco-based GroundWork Open Source, Inc. (www.groundworkopensource.com) integrates, enhances and develops leading open source software to deliver comprehensive IT operations management solutions. With GroundWork solutions, enterprises leverage the flexibility and low cost of open source tools to achieve enterprise-level availability, performance and operational efficiency at a fraction of the cost of commercial software. GroundWork customers represent a variety of industries, including manufacturing, government, financial services, education, and high technology. GroundWork investors are Mayfield and Canaan Partners.