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Red Bend Software Enters Mobile Virtualization Market with Acquisition of VirtualLogix

With unique combination of software management and virtualization, Red Bend will enable the mobile industry to bring secure, advanced cloud services to consumers and enterprises

WALTHAM, Mass., and SANTA CLARA, Calif.—September 7, 2010—Red Bend Software, the market leader in Mobile Software Management (MSM), today announced the acquisition of VirtualLogix, a leading provider of Real-Time Virtualization™ technology for mobile handsets. The addition of VirtualLogix’s successful products and experienced team enables Red Bend to enter the high-growth mobile virtualization market and broaden its management solutions for device manufacturers, semiconductor vendors, software developers and service providers in order to make feature-rich, highly customizable, affordable and secure mobile phones and connected devices a reality. Terms were not disclosed.

The mobile industry is at a crossroads as consumers demand smarter devices, richer applications, personalized services and faster connections. Legacy technical and commercial constraints have created a tight coupling between software, services and hardware, slowing innovation and driving up costs. The challenge is how to enable innovation and competition across the industry to bring affordable, exciting mobile services to consumers and enterprises. Market entrants from the Internet and computer industries have offered a vertically integrated mobile experience, but this controlling approach limits consumer choice and increases costs.

Red Bend will meet this challenge by combining its widely deployed mobile software management products with the leading VLX™ mobile virtualization software from VirtualLogix. The company’s solutions will enable each player in the ecosystem to securely and independently manage different software assets on mobile devices and bring advanced, cloud-based mobile services to market faster and more profitably.

“Today marks the beginning of a new era for Red Bend Software and a preview of what’s to come in the mobile industry. Mobile software management and mobile virtualization are converging, creating a strategic enabler for our customers to deliver the next generation of devices and services,” said Yoram Salinger, CEO of Red Bend Software.

“Mobile virtualization is a technology with high growth potential. Red Bend has the trusted customer relationships, technical expertise, operational infrastructure and proven execution abilities to take mobile virtualization to the next level. We intend to do for mobile virtualization what we’ve done to make mobile software management a mass-market success,” he concluded.

Red Bend Software was founded in 1999 to solve the complex challenge of remotely managing software in constrained operating environments. In 2003, it entered the mobile phone market with an innovative solution for updating firmware over the air (FOTA). Although not the first company to deliver FOTA, by 2007 Red Bend’s superior technology and go-to-market execution vaulted it to market leadership. Today, Red Bend has a commanding 71 percent share of FOTA-enabled mobile phones, according to Ovum. Nearly one in four handsets shipped in Q1 2010 was Red Bend-Enabled™. Eight of the top 10 handset manufacturers, as well as leading operators such as China Mobile and NTT DOCOMO, have deployed Red Bend’s software updating and device management solutions in 750 million mobile phones and connected devices.

“Red Bend‘s leadership in software management and VirtualLogix’s leadership in mobile virtualization are a powerful fit,” said Glenda Dorchak, vice chairman and CEO of VirtualLogix. “This acquisition uniquely positions Red Bend to provide customers with new capabilities for improving how handsets are developed, applications are delivered and services are provisioned, all of which will make virtualized mobile devices a mass-market reality.”

Founded in 2002, VirtualLogix offers the only embedded virtualization solution architected for both ARM and Intel x86 microprocessors. Its VLX product enables device manufacturers and semiconductor vendors, including ST-Ericsson and Infineon, to achieve lower costs and faster time to market for Android-based smartphones. VirtualLogix’s staff in France, Taiwan, Japan and the U.S., joins Red Bend’s global organization effective immediately. The combined company has approximately 150 employees.

For more information, visit: www.redbend.com/virtuallogix.

About VirtualLogix
VirtualLogix®, Inc. is the global leader in Real-Time Virtualization™ software technology for mobile products including wireless handsets. VirtualLogix’s flagship product, VLX, enables multiple operating system environments to run concurrently on shared hardware for both Intel and ARM-based solutions. VLX delivers isolation technology and virtualization that improves power management, performance, application independence, fault tolerance and security options, which can be tailored to address specific market requirements. This enables developers to reduce R&D costs, accelerate adoption of the latest silicon solutions, improve time-to-market and deliver improved mobile device security. VirtualLogix is accelerating the availability and innovation in the next generation of wireless devices. VirtualLogix Inc. is headquartered in Santa Clara, Calif., with development operations in France and business offices globally. For more information, go to www.virtuallogix.com or www.vlx.com.

About Red Bend Software
Red Bend® Software, the leader in Mobile Software Management (MSM), provides software solutions for managing firmware, applications and devices over the air. The company’s award-winning products enable device manufacturers, mobile operators and software developers to increase revenues, reduce support costs and achieve faster time to market by remotely managing their software assets on mobile devices. Red Bend’s software has been deployed in 750 million mobile devices by eight of the top 10 handset manufacturers and leading mobile operators such as NTT DOCOMO and China Mobile, as well as dozens of other companies in the mobile, M2M and WiMAX markets. Unlike device management vendors with proprietary end-to-end systems and manufacturers’ internally developed solutions that are platform specific, Red Bend is the only company offering independent client software that is interoperable with any standards-based server and that works with any platform on any type of mobile device. Founded in 1999, Red Bend is a privately held, venture capital-financed company with offices in China, Israel, Japan, Korea, the U.K. and the U.S.

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Media Contact:
Kevin Flanagan (mobile +1 781 856 2589 or kevin.flanagan@redbend.com)