xkoto Secures $7.5 Million in Series B Financing from GrandBanks Capital and GrowthWorks Canadian Fund



    Industry Veteran David Patrick Joins as New Boston-based CEO, Poising the
Data Virtualization Start-up for Aggressive Growth

    BOSTON, November 6 /CNW/ - xkoto Inc., a provider of data virtualization
solutions, today announced it has raised $7.5 million in new financing. The
Series B funding was led by GrandBanks Capital. Existing investor GrowthWorks
Canadian Fund also participated in this round, bringing xkoto's total venture
funding to $10 million. In conjunction with the funding, xkoto also named
seasoned software industry executive David Patrick as CEO, and announced that
Khalil Barsoum and Tim Wright have joined the xkoto board.

    Series B Funding

    Building on recent customer initiatives with UnitedHealthcare, The
Children's Place Retail, Genworth Financial, InGrid, Travelport and two
leading Wall Street investment firms, xkoto will use the new financing to
increase its product portfolio to support multiple database and ISV platforms,
expand its U.S. presence, further accelerate sales and establish strategic
partnerships.

    xkoto's technology platform and flagship product, the GRIDSCALE Database
Load Balancer, empowers SMBs and Fortune 100 companies to manage virtualized
data through a single transparent interface so that applications become
continuously available and horizontally scalable. Its patent-pending
technology enables commercial off-the-shelf databases to run in a grid with
the same or better reliability and performance as much more expensive
proprietary systems.

    "Today's IT organizations are exploring various emerging technologies to
find the ideal solution to decrease costs and increase efficiency," said Tim
Wright, General Partner, GrandBanks Capital. "With a proven product and broad
customer deployments, xkoto is very well positioned to leverage the pent up
demand for truly scalable solutions that ensure database availability across
distributed enterprises. We are looking forward to helping them continue their
impressive growth trajectory."

    "David's leadership and GrandBanks' expertise builds on xkoto's strengths
in utility, grid computing and data virtualization and will enable xkoto's
rapid expansion in the U.S.," said Tim Lee, SVP Investments, GrowthWorks
Capital. "GrowthWorks is proud to provide continued financing and support to
xkoto as we believe the company will be the leader in the data virtualization
market."

    U.S.-Based CEO Appointment

    With over 25 years of senior executive experience in the software
industry, Patrick joins xkoto as its new CEO, based in Boston. Co-founding
President and CEO Albert Lee will become Chief Strategy Officer. Previously,
Patrick was Vice President & General Manager at Novell, where he managed the
Linux, Open Source, and Platform Services Group. In this position, he was
responsible for the $450 million division that included Novell's SUSE Linux
and Netware operating systems, electronic mail products and a number of
emerging open source technologies.

    "Companies of all sizes are faced with a mounting data problem - more
data, complex systems and distributed computing environments," said Patrick.
"Our additional funding and board expansion will help xkoto apply
virtualization to data center architecture to transform it from a liability
into an asset. I'm pleased to be joining the company at this critical
juncture."

    Patrick joined Novell in 2003 as part of the acquisition of Ximian, a
leading Linux and Open Source software company, where he was President and
CEO. Patrick's previous experience includes President of Worldwide Sales and
Operations for The Learning Company, COO of WordStar, Vice President for
Worldwide Sales and Marketing at the Tops networking division of Sun
Microsystems, and President of Migent International. Earlier in his career he
held several senior management positions at Ashton-Tate and Lotus. Patrick has
a bachelor of arts degree from the Berklee School of Music and serves on
Berklee's Presidential Advisory Council. He also serves as an advisor to a
number of early-stage technology companies.

    Board Expansion

    In conjunction with the investment, industry veteran Khalil Barsoum and
Tim Wright, General Partner, GrandBanks Capital, have joined xkoto's board of
directors. Barsoum and Wright join Roger Chabra of GrowthWorks, Mark Stirling,
President, Treadstone Associates, and Albert Lee, Chief Strategy Officer,
xkoto, in this capacity.

    Barsoum has held a number of senior executive positions with IBM
including Chairman and CEO of IBM Canada, Chairman and CEO of IBM UK, and
General Manager, Communications Sector. Wright is a General Partner of
GrandBanks Capital and has previously served as Senior Vice President, CIO and
CTO of several global public companies including Geac Computer Corporation
Ltd. (NASDAQ:   GEAC), Terra Lycos S.A. (NASDAQ:   TRLY) and The Learning Company
(NYSE:   TLC).

    About GrandBanks Capital

    GrandBanks Capital invests in early stage technology companies located
primarily in the eastern part of the United States and Canada. With
headquarters outside of Boston, the firm was established in partnership with
SOFTBANK Corp. and has proven investment expertise in Internet infrastructure,
software, security and storage applications, media and wireless technologies
and services, and financial technologies and services. The GrandBanks Capital
portfolio currently includes: Colubris Networks Inc., Coradiant Inc., Ember
Corporation, Enpocket Inc., First Coverage Inc., GlassHouse Technologies,
Inc., Incipient, Inc., OutStart, Inc., uLocate Communications, Inc, Vela
Systems, Inc., and Vivox. For more information, please visit
www.grandbankscapital.com.

    About GrowthWorks

    GrowthWorks(TM) managed funds provide investment capital for Canadian
companies and tax-advantaged investment opportunities for Canadian investors.
GrowthWorks manages more than $800 million in assets through the Working
Opportunity Fund (EVCC) Ltd., GrowthWorks Atlantic Venture Fund Ltd.,
GrowthWorks Commercialization Fund Ltd. and GrowthWorks Canadian Fund Ltd.
GrowthWorks identifies, analyzes and structures investments in companies with
high growth potential. Particular emphasis is placed on IT, Life Sciences and
Advanced Manufacturing sectors. Building on more than 15 years of investment
expertise, GrowthWorks is a leader in Canadian venture capital management. For
more information please visit www.growthworks.ca.

    About xkoto

    Founded in 2005, xkoto's technology platform enables the replication and
virtualization of data. The GRIDSCALE Database Load Balancer manages a
geographic grid of standard, commercial databases, making them appear
virtually as a single local database so that applications become continuously
available and horizontally scalable. Through its proven disruptive technology,
xkoto currently empowers SMBs and Fortune 100 companies to decrease costs and
increase utilization. Recently named one of Deloitte's 2007
Companies-to-Watch, xkoto's technology partners include IBM, Microsoft,
Novell, Sun Microsystems and Sybase. xkoto is based in Toronto and Boston. For
more information about xkoto, visit http://www.xkoto.com.

    GrowthWorks refers to affiliates of GrowthWorks Ltd. and includes:
GrowthWorks Capital Ltd, manager of the Working Opportunity Fund (EVCC) Ltd.;
GrowthWorks WV Management Ltd., manager of GrowthWorks Canadian Fund Ltd. and
GrowthWorks Commercialization Fund Ltd.; and GrowthWorks Atlantic Ltd.,
manager of GrowthWorks Atlantic Venture Fund Ltd. GrowthWorks is a registered
trademark of GrowthWorks Capital Ltd.

    xkoto and GRIDSCALE are trademarks or registered trademarks of xkoto,
Inc.

    All other company, product or service names may be trademarks or
registered trademarks of others.




For further information:

For further information: BluePoint Venture Marketing for xkoto, Inc.
Melissa Coyle, 781-861-7800 melissa@bluepointmktg.com

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XKOTO INC.

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