Burlington, MA, July 7, 2004 - XOsoft, a leading provider of continuous application availability solutions for the enterprise, today announced that it has completed a $9 million financing round with its investors. XOsoft will use this funding to bolster its sales and marketing initiatives, to expand its number of channel partnerships and to integrate its software more tightly with major server and database platforms.

Today's round of funding is XOsoft's fourth since the company's inception in 1999, bringing the total amount raised to nearly $30 million. XOsoft now has over 250 customers including some of the largest financial and government organizations in the world.

"We have seen a surge in demand over the last year, particularly in products that help minimize downtime and allow uninterrupted access to enterprise applications," says Professor Leonid Shtilman, XOsoft's Founder and Chief Executive Officer. "We are pleased that our investors have seen the strides made thus far, and we look forward to continued success as the company expands its sales, marketing and channel presence."

Marc Sokol, Partner, JK&B Capital, states: "We believe XOsoft has the right mix of technology and business management expertise to be successful in selling to large enterprises. Its best-of-breed software has the potential to enable a major market shift with regard to how companies secure and restore their information."

Companies are becoming increasingly concerned with their ability to ensure continuous availability of their critical applications. This concern relates directly to the growing shift of focus from underlying technologies towards customer-oriented business value that must be protected and enhanced. According to Gartner Group and other leading analyst firms, backup and replication will merge to form a single recovery market. It is XOsoft's belief that these changes, as well as economic recovery and falling prices of such infrastructure as servers, storage and network bandwidth will drive demand in replication-based solutions.

About XOsoft
XOsoft keeps enterprises working by ensuring continuous availability to business-critical applications. XOsoft?s patented software for business continuity, disaster recovery and continuous data protection significantly lowers the risk for decreased productivity and lost revenue by minimizing downtime associated with planned and unplanned outages. Many of the world?s largest companies and most important government agencies trust XOsoft to ensure uninterrupted access to their information assets. For more information, please visit www.xosoft.com.

Ruder Finn Public Relations
Jorge Alday
212.593.5833
XOsoftPR@ruderfinn.com