http://www.kace..com

MOUNTAIN VIEW, Calif. – January 29, 2007 – KACE, the leader in IT management solutions for mid-market organizations, today announced that a number of major milestones have been passed in 2006, including a more than triple increase of revenues for the year, more than 100,000 nodes under management, launch of the KBOX 1000 Series Systems Management and KBOX 2000 Series Systems Deployment Appliances, as well as continued increase in reseller participation, recognition from the IT industry press community, and a very successful inaugural user conference represented by 25% of KACE’s customer base.

“KACE had a truly banner year in 2006,” said Rob Meinhardt, CEO of KACE. “Based on our record growth, the on-going chatter and recognition about our company in leading industry publications, and our very high user conference attendee rate, we know the IT community is embracing the concept of automation via affordable, yet very comprehensive appliances to manage mixed networks in the mid-market.”

Launched in August, the KBOX 2000 Series Systems Deployment Appliances are a first-generation easy-to-use, comprehensive, and affordable family of turnkey appliances that allow remote, unattended provisioning -- including operating systems, applications, and files, of servers, desktops, and laptops. The KBOX 2000 Series frees systems administrators from the overly-complex, time-consuming manual process of deploying and re-provisioning machines for use in both standardized and heterogeneous hardware environments.

A significant upgrade to KACEÂ’s flagship product, the KBOX IT Management Suite, was launched the following month. Known as the KBOX 1000 Series, this line of appliances expands its comprehensive management capabilities from the Windows platform to Linux (Red Hat), Solaris, and Mac OS X. The KBOX 1000 Series is an affordable, end-to-end systems management tool that includes: hardware and software inventory, software distribution, patch management, scripting and policy configuration, remote control, alerting, reporting and dashboards, security audit and enforcement, as well as an end-user self service portal.

The first ever KACE User Konference was held in early November, bringing together some of the oldest KBOX users and some of the newest. The conference attracted representation from a quarter of KACEÂ’s overall customer base. The sessions covered best practices and advanced technical usage of the KBOX. In a survey submitted at the conferenceÂ’s conclusion, 100% of the attendees indicated they would attend, or recommend that others attend, the next KACE User Konference.

In addition to record 2006 sales, increased reseller participation, very successful rollouts of both the KBOX 1000 and KBOX 2000 Series of automation appliances and inaugural user conference, the year was rounded out by on-going recognition and very positive coverage by leading IT industry publications. For example, in October KACE was featured as a “Top 10 Management Company to Watch,” by Network World magazine. And in December, the company was highlighted by Infoworld in its “Year in Reviews” feature that recapped the year’s best product reviews stories. “KACE’s KBOX is a step in the right direction for an SMB market that has long lusted after an automated updater with compliance functions,” Infoworld reviewer Brian Chee claimed in his July review.

About KACE

KACE, a privately held technology company, is the leader in IT automation appliances. The KBOX family of appliances deliver easy-to-use, comprehensive IT automation that is affordable and really work. The KBOX 1000 Series Systems Management Appliances automate routine and complex IT maintenance tasks for end-point nodes on a network. The KBOX 2000 Series Systems Deployment Appliances provide centralized provisioning and remote system recovery.

KACE is headquartered in Mountain View, California, and has offices in Charlotte, North Carolina, and Chicago, Illinois. To learn more about KACE and its product offerings, please visit http://www.kace.com or call 1-888-522-3638.

Editorial contact:

Cathy Wright

Kulesa PR

650.340.1985

cathy@kulesapr.com