Neterion, Inc.

Neterion, Inc.

June 13, 2005 08:00 ET

Neterion Brings 10 Gigabit Ethernet to the Channel, Launches VARs and System Integrators Program; Company Will Pass End-User Customer Leads to the Channel

CUPERTINO, Calif.--(CCNMatthews - Jun 13, 2005) -

Today Neterion Inc., the industry leader in the 10 Gigabit Ethernet adapter market, announced that it is developing a channel program for marketing and support of its family of 10 GbE Xframe® adapters. The program targets resellers whose customers include senior IT management at major enterprise and government data centers.

Current industry research indicates that these are markets poised for considerable growth. According to analysts at IDC, 10 GbE LAN switch ports revenue grew at an 87% sequential rate between the third and the fourth quarter of 2004. Industry research firm Gartner is forecasting that sales of 10 Gigabit Ethernet fiber adapters will dramatically increase in the last quarter of 2005 and actually surpass 1GbE fiber shipments by the first quarter of 2007. The 10 Gigabit Ethernet ecosystem is already in place with all the leading switch, server, storage and software vendors offering 10-GbE based products.

"Our channel program is going to present some tremendous sales opportunities for our partners," stated Tracy Crowe, Neterion's Director of Market Development and Alliances. "The high performance, interoperability and scalability of 10GbE technology will enable our channel partners to deliver higher value solutions to a growing base of customers. And we will provide a level of support that will ensure their ongoing success."

Channel partners will be able to leverage Neterion's leading intellectual property as well as its strong OEM relationships. Neterion customers include SGI, Cray, HP and Sun Microsystems. Later this year additional server and storage OEMs will be announced.

Neterion's strategy is 100% channel-focused with no direct sales to end-user datacenter customers. Currently, the overwhelming majority of Neterion's revenue comes through its OEM relationships, but the company is projecting at least 50% of its sales will originate from the channel within 18 months.

Earlier this year, Neterion signed a mutually exclusive agreement with Hitachi High Technologies (HHT), the leading Japanese distributor of technology-based products in the market. Neterion has also signed agreements with Info X Technology Solutions for the Americas region and ACAL Storage Networking for Europe/EMEA, ensuring worldwide coverage of its Xframe line of products for sales, marketing and technical support.

Neterion will be releasing specific details of its channel program in the coming weeks, but the company's partners can anticipate special partner promotions, a password-protected partner website, comprehensive technical support, technical and sales training, starter kits and cooperative sales programs.

Neterion will also soon announce a unique lead-generation program and set the tone for future marketing campaigns designed to create sales opportunities for its partners channel.

About Neterion, Inc.

Founded in 2001, Neterion Inc. has locations in Cupertino, California and Ottawa, Canada. Neterion delivers 10 Gigabit Ethernet hardware & software solutions that solve customers' high-end networking problems. The Xframe® line of products is based on Neterion-developed technologies that deliver new levels of performance, availability and reliability in the datacenter. Xframe, Xframe II and Xframe E include full IPv4 and IPv6 support, and comprehensive stateless offloads that preserve the integrity of current TCP/IP implementations without "breaking the stack." Xframe drivers are available for all major Operating Systems, including Microsoft Windows, Linux, Hewlett-Packard's HP-UX, IBM's AIX, Sun's Solaris and SGI's Irix. Neterion has raised over $42M in funding with its latest C round taking place in June 2004. Formerly known as S2io, the company changed its name to Neterion in January 2005.

Further information on the company can be found at http://www.neterion.com/

Xframe is a registered trademark of Neterion, Inc.

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