EqualLogic Announces Sale to Dell

Dell has entered into a definitive agreement to acquire EqualLogic, a leading provider of high-performance iSCSI storage area network (SAN) solutions uniquely optimized for virtualization. The acquisition will strengthen Dell’s product and channel leadership in simplifying and virtualizing IT for customers globally. iSCSI SAN technology represents the fastest growing part of the storage business.

“Our customers will be dealing with the largest increase in data we have seen in our history over the next few years,” said Michael Dell, Chairman and CEO, Dell. “Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualization and will drive the Dell value proposition into more areas of the enterprise storage business,” Mr. Dell said.

Under the terms of the agreement, Dell will purchase EqualLogic for approximately $1.4 billion in cash. The acquisition of EqualLogic is expected to close late in the fourth quarter of Dell's fiscal year 2008 or early in the first quarter of fiscal 2009. The company expects the acquisition to be dilutive to earnings per share, excluding the amortization of intangibles, by $0.02 to $0.05 in aggregate for Fiscal 2009 and Fiscal 2010. The acquisition has been approved by the board of directors of each company and is subject to regulatory approvals and customary closing conditions.

After completion of the transaction, Dell plans to grow EqualLogic’s successful channel-partner programs with current and future EqualLogic-branded products, and also plans to incorporate EqualLogic technology into future generations of its Dell PowerVault storage line available through the channel and direct from Dell.

“While this is a change in direction from the IPO we were all expecting, we are still very committed to the EqualLogic brand”, explained Dave Hiechel President and CEO of EAGLE. “The bottom line is we look for the right storage technology for our customers. iSCSI SAN technology represents the fastest growing part of the storage business. The news of this acquisition further validates to us and our customers that EqualLogic is the leading solution for iSCSI storage.”

“EAGLE will still be fully supporting all of our EqualLogic customers with the best support in the industry, and building great solutions around EqualLogic storage,” said Hiechel. “Rest assured, EAGLE is very committed to providing the best solutions for our customers and EqualLogic still going to be a part of that commitment.”

About EAGLE
EAGLE is a storage integrator, specializing in storage, backup and disaster recovery for customers across the nation. EAGLE has been in business since 1981, and an EqualLogic partner since 2003, and in that time has sold hundreds of arrays. In addition, EAGLE is ranked nationwide as one of the top EqualLogic Channel partners.

About EqualLogic
EqualLogic makes data storage systems that simplify the way enterprises of all sizes store and protect information. EqualLogic’s award-winning PS Series storage area network (SAN) solutions provide sophisticated management capabilities that reduce the time and money IT staff spend on data storage.

About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell is a leading global systems and services company and No. 34 on the Fortune 500.

In addition to EqualLogic products, EAGLE distributes a full line of storage and backup and recovery products including tape library backup solutions, backup and recovery software packages, and SAN and NAS storage solutions. EAGLE also provides pre-sales evaluation and design, integration and support services.

For more information on EAGLE's products and services, contact: EAGLE Software, 123 Indiana Ave., Salina, KS 67401; Phone (800) 477-5432; Fax: (785) 823-6185; email: contact@eaglesoft.com; website: http://www.storagebyeagle.com.

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