Leostream(TM) Connection Broker Achieves 150th Customer Milestone

Analyst Reports Project 30 Million Hosted Desktops in Use by 2011


WALTHAM, MA--(Marketwire - October 22, 2008) - Leostream™ Corporation (www.leostream.com), a leading developer of Virtual Hosted Desktop software, today announced that its Connection Broker software is deployed by more than 150 customers worldwide in sectors that include financial services, software, healthcare, education, customer support, and government.

The Leostream Connection Broker is management software that runs on virtualization hosts such as those offered by VMware®. IT administrators use it to consolidate end-user resources in the data center, establish access policies for end-users and machines, and manage the hosted environment.

"We are excited to see the rapid adoption of the Connection Broker for desktop virtualization," said Leostream CEO Mike Palin. "While this market is still young, we see our customers moving from proofs of-concept and pilots to production -- a number of our customers are now deploying Leostream-powered Hosted Desktops to thousands and even tens of thousands of end-users."

Analyst firm IDC predicts the total market for Virtual Desktop Infrastructure products and services will exceed $1 billion by 2011. Others predict 30 million desktops will be hosted by 2011.

"Analyst predictions are aggressive and the uptake we've seen confirms that Leostream has the flexibility to create the hosted end-user environments that customers are demanding. Our customers are realizing management, security, and cost-savings benefits today," Palin added.

Customers such as Commerzbank AG (NY), Bell Canada, Sogeti BV, the United States Patent and Trade Office, and the University of Rennes use Leostream to connect their end-users with the right hosted computing resources. The Connection Broker's vendor-independence gives customers the flexibility they need to integrate heterogeneous data center elements including desktops, Microsoft® Terminal Server sessions, and streaming applications into robust, unified Hosted Desktop environments.

Case Studies:

Financial Services: Smart Card Authentication
    Commerzbank AG (NY) engaged Leostream, Wyse®, and IdentiPHI to create
    a smart card-based authentication system for Hosted Desktops. Using a
    solution based on smart cards that store X.509 digital certificates,
    smart card readers, Wyse WTOS thin clients and Microsoft Active
    Directory®, these partners developed a multi-factor, strong
    authentication solution that provides straightforward log-in and
    "anywhere" access for end-users while adhering to strict industry
    security standards.

    Commerzbank North America Systems Engineer, Ewange Musonge said, "It
    was very important that we work with partners who bought into our
    vision for VDI, and understood our security and accessibility
    requirements. Our solution, based on the Leostream Connection Broker,
    eases and demystifies the login/authentication process for the end
    user. And end-users benefit from 'anywhere' access to Hosted Desktops,
    while the system itself adheres to strict industry security standards."

Education: Wireless & Thin Client Application
    The University of Rennes 2 in France engaged Leostream, VMware, and
    Wyse to create a campus-wide desktop solution that could be accessed
    both from thin clients in computer labs and laptops in areas with a
    WLAN connection. This solution improved campus-wide desktop
    accessibility for 20,000 users while meeting security and management
    requirements such as multi-factor authentication, fine-grained access
    rights, and a small management footprint.

    "Leostream Hosted Desktops are far more manageable than desktops in a
    physical environment," said Humberto Duarte, IT Department Co-Director
    at the University of Rennes 2 in France. "The process of provisioning
    computers is streamlined.  We can rely on standard templates to
    provision new devices and users, and updates are also more efficient.
    Security is greatly improved and patching is much easier thanks to
    centralized management."

Healthcare: HIPAA-compliant 'Anywhere' Access
    An American clinic with a staff of 400 evaluated the best way to
    implement new clinical systems, enhance security, and plan for
    expansion during systems upgrades that were part of  the clinic's
    regular hardware refresh cycle.  With the tight regulation of
    HIPAA-mandated patient security, need for failsafe 24/7 system
    reliability, and manageability concerns, the clinic looked for ways to
    leverage virtualization to meet these goals.

    After evaluating traditional desktops, application virtualization, and
    desktop virtualization, the clinic selected a secure Hosted Desktop
    solution managed by the Leostream Connection Broker and based on a
    VMware virtualization layer and thin clients.  The clinic replaced
    standard "fat" desktop PCs with Wyse thin clients equipped with card
    readers, moved Microsoft Windows® desktops to virtual machines, and
    deployed the Leostream Connection Broker to implement and control
    secure access to the Hosted Desktops.

    The Connection Broker supported the clinic's requirements, including
    centralized patient data, smart cards for strong, two-factor
    authentication, location-based access, and USB lock-down.

Software Offshoring: Role-based, Remote Access to Development Resources
    Sogeti Nederland needed a cost-effective solution that would enable
    developers in India to access remote development tools hosted in the
    Netherlands. The solution needed to be secure, location-independent,
    scalable, high-performance, and easily managed. Sogeti chose Leostream
    Connection Broker to provide role-based, semi-permanent Hosted Desktops
    to remote developers and testers while meeting security requirements
    and overcoming distance and local Internet infrastructure issues. The
    system enables the offshore team to use versioning and issue tracking
    systems hosted in the Netherlands without ever directly accessing
    Sogeti's corporate network.

    With Leostream, Sogeti was able to provide a cost-effective solution
    that allowed seamless access to developers and testers while meeting
    all other requirements including the provision of multiple,
    semi-permanent Hosted Desktops per user. The platform fostered a more
    collaborative environment among developers and was built for less than
    EUR 0,50 per user (exclusive of connectivity costs).

To learn more about these case studies, please visit www.leostream.com/productCaseStudies.html

About Leostream Corporation

Based in Waltham, Mass., Leostream (www.leostream.com) is a vendor-independent software company that has been a driver in the evolving virtualization space. With its Connection Broker product, Leostream provides a complete solution for organizations to manage end-user resources hosted in the data center, including desktops, Terminal Server sessions, and streaming applications. The Leostream Connection Broker supports the integration of a wide range of clients, back-ends, and viewer, authentication, and security protocols. Supported client devices include: CompuMaster, Cranberry, Devon IT, HP®, IBM®, IGEL®, Microsoft Windows (2000, XP, XPe, Vista® 32- and 64-bit), Sun™ and Wyse. Back-end support includes: Microsoft Terminal Services, Physical Machines, Workstation Blades, VMware, and Citrix™ XenServer™ and XenApp™. Connection Broker supports the following remote viewer protocols: Teradici™ PC-over-IP™, HP RGS, Famatech® Radmin®, RDP, Sun ALP, VNC. SSL VPN support includes Cisco®, F5®, Juniper Networks®, and Sonicwall. Authentication support includes: OpenLDAP, Microsoft Active Directory™, Novell® eDirectory™, and multi-factor authentication with smart cards and biometrics (fingerprints).

For more information visit www.connectionbroker.com or www.leostream.com or contact sales@leostream.com. Leostream Corp., 411 Waverley Oaks Road, Suite 316 Waltham, MA 02452. Tel. (781) 890-2019.

All company and product names are property of their respective owners.

Contact Information: Press Contact: Victor Cruz Tel. 401-808-6264 vcruz@mediapr.net Kate de Bethune Marketing Director Leostream, Inc. Tel. 781-890-2019 x705 kdebethune@leostream.com