2008 News Releases

InMage Systems Secures $15 Million in Funding Led By Intel Capital

Funding to Expand InMage’s Worldwide Presence, North American Sales Channels and Product Development Initiatives

SANTA CLARA, Calif. – September 23, 2008 – InMage Systems, Inc.®, (www.inmage.com) today announced it has secured $15 million in a Series C round led by Intel Capital, Intel’s venture capital organization. Additional prominent investors in the round include Hummer Winblad Venture Partners and Kumar Malavalli. This investment will be used to expand InMage’s North American sales channels and accelerate worldwide expansion, with an emphasis in Europe, the Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions. Funds will also be directed toward product development and engineering of DR-Scout, InMage’s flagship disaster recovery (DR) and business continuity software. DR-Scout provides businesses, government agencies, universities and other enterprises with data protection and recovery capabilities that sustain operations during natural disasters or everyday system failures.

“We are very pleased that Intel Capital has provided this round of funding, which enables us to continue the momentum we’ve gained in the disaster recovery market," said John Ferraro, president and CEO, InMage Systems. “Fast growing markets such as EMEA and APAC present an ideal opportunity to increase adoption of DR solutions, and are a critical part of the next phase of our business strategies. We are also investing heavily in engineering resources to ensure that DR-Scout continues to represent innovation in disaster recovery technology."

“Today’s business environment is filled with drivers for data protection products, ranging from unforeseen disasters to backup reliability and regulatory compliance issues," said Bryan Wolf, managing director, Intel Capital Digital Enterprise. “InMage Systems provides comprehensive solutions that address these customer needs."

About InMage Systems, Inc.

InMage Systems provides continuous data protection and disaster recovery solutions for small to large enterprises. The company’s flagship software suite, DR-Scout, enables companies to protect, maintain and access their critical data and applications during any event that threatens information loss. DR-Scout ensures the integrity of backup and replication processes that are essential to business operations, both on a daily basis and during unforeseen disasters. Key applications include disaster recovery, operational recovery and application/data availability. DR-Scout is also noted as the pioneer of true event-based recovery that facilitates compliance with regulatory requirements. InMage was co-founded in 2001 by technology leaders, including CTO and SVP of Engineering Rajeev Atluri, previously of Gadzoox and storage visionary and Brocade co-founder Kumar Malavalli. InMage is headquartered in Santa Clara, California. For more information, visit www.inmage.com.

About Intel Capital

Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than US$7.5 billion in approximately 1,000 companies in 45 countries. In that timeframe, 168 portfolio companies have gone public on various exchanges around the world and 212 were acquired or participated in a merger. In 2007, Intel Capital invested about US$639 million in 166 deals with approximately 37 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.

About Hummer Winblad Venture Partners

Hummer Winblad Venture Partners was founded in 1989 as the first venture capital fund to invest exclusively in software companies. Through its history, Hummer Winblad Venture Partners has had the opportunity to invest in the pioneers and leaders of several generations of software applications, architectures, delivery methods and business models. Hummer Winblad Venture Partners has helped entrepreneurs build companies in desktop software, embedded systems, client-server, distributed network computing, internet, and software as a service.To learn more about Hummer Winblad Venture Partners visit www.humwin.com.

Media Contact: Sandy Moul
Sparks & Associates
Tel: (949) 419-6177
E-mail: sandy@sparks-associates.com