Linux Networx Secures $40 Million Equity Financing to Fund Expansion

Funding to Enable Leading Linux Cluster Systems Company to Expedite the

Introduction of New Products and Accelerate World-Wide Expansion

Nov 04, 2004, 00:00 ET from Linux Networx

    SALT LAKE CITY, Nov. 4 /PRNewswire/ -- Linux Networx, the innovation
 leader in Linux cluster systems for high performance and technical computing,
 announced today it has closed $40 million in Series B funding.  Oak Investment
 Partners led the round, which also included new investor Tudor Ventures.
     Linux Networx builds some of the world's most powerful Linux cluster
 systems for commercial and government organizations.  Its innovative products
 enable industry leaders in manufacturing, aerospace, oil & gas, life sciences
 and scientific research to address society's most complex problems.
     "Linux Networx has consistently been the leader in cluster technology with
 our expertise, solutions and services, and we will continue to blaze the trail
 in this market to help our customers accomplish their computing goals," said
 Bernard Daines, CEO of Linux Networx.  "Organizations can look to Linux
 Networx to provide productive, innovative cluster technology to address the
 growing needs of the technical computing marketplace."
     The funding will allow Linux Networx to expedite the introduction of
 next-generation technologies that enhance the productivity and efficiency of
 cluster computing.  Linux Networx also plans to expand its reach into markets
 that can benefit from highly productive cluster computing and increase its
 presence in North and South America, Europe, Middle East, Africa (EMEA) and
 Asia Pacific.
     "Linux Networx has established itself in the high-performance computing
 market with the successful delivery of some of the world's most powerful Linux
 clusters," said Addison Snell, research director for High-Performance
 Computing at IDC.  "This funding announcement is an endorsement of Linux
 Networx and its vision in technical computing."
     Ed Glassmeyer, founding general partner of Oak Investment Partners, will
 join Linux Networx's board of directors.
     "Fluent relies on Linux cluster technology to produce fast, accurate
 results for our software development, as well as support the mission-critical
 operations of our customers," said Paul Bemis, vice president of Fluent, Inc.
 "Linux Networx's unmatched cluster expertise and commitment to delivering
 productive, efficient computing systems makes them the ideal partner for
 delivering powerful cluster computing technology to the manufacturing market."
     Revolution Partners acted as the Placement Agent for Linux Networx.
     Linux Networx also announced today a new scalable storage technology,
 called the Xilo(TM) scalable storage system, that combines storage devices,
 management software, and the most scalable file systems into an easy-to-
 administer storage appliance.  For more information and technical
 specifications about the Xilo storage appliance, visit
     About Linux Networx
     Linux Networx enables organizations to accelerate product development and
 research by improving the performance and reducing the cost of high
 performance computing. Linux Networx provides proven cluster computing systems
 that deliver maximum sustained performance and high return on investment to
 our customers.  The company's computing systems are used for simulation,
 analysis and modeling.  Through its innovative Evolocity(R) hardware, cluster
 management tools and professional service and support, Linux Networx provides
 end-to-end clustering solutions.  To date, the company has built some of the
 fastest cluster systems in the world, and boasts numerous Fortune 500
 customers.  For more information about Linux Networx, visit
     About Oak Investment Partners
     Established in 1978, Oak Investment Partners is a venture capital firm
 with a strong track record as a stage-independent investor.  To date, Oak has
 funded more than 350 companies with aggregate annual revenues in excess of $60
 billion. Oak's investment strategy focuses on growth opportunities in
 enterprise application and infrastructure software, communications equipment
 and services, data storage, outsourced services, financial services
 technology, and healthcare services.  Located in Westport, CT, and with
 offices in Minneapolis, MN, and Palo Alto, CA, Oak concentrates on building
 long-term relationships with experienced management to develop successful
 companies that deliver consistent performance over time such as AthenaHealth,
 Compaq, Genzyme, Parametric Technology Corporation, PictureTel (now part of
 Polycom), Polycom, SanDisk, Seagate Technologies, Sybase, Synopsys, Telica
 (acquired by Lucent), Wellfleet (acquired by Nortel) etc.  For additional
 information visit
     About Tudor Ventures
     Tudor Ventures is the venture capital and private equity arm of Tudor
 Investment Corp., an internationally recognized, diversified investment
 management firm with total assets under management in excess of $8.7 billion.
 Since the early 1990's, Tudor and its principals have invested in over 75
 companies, with a strong record of investment success, and currently manage
 over $500 million in private equity investments.

SOURCE Linux Networx