Aternity Raises $5M in Second Round of Financing and enters into Marketing Cooperation Agreement with Intel

Frontline Performance Intelligence Will Smooth Path for Fast Growth Strategy

Boston, MA- May 31, 2007 - Aternity Inc., supplier of application management software for enterprise IT, announced today the completion of a $5M million Series B equity financing. Intel Capital led the round, with participation of Aternity’s existing investors: Vertex Venture Capital, Genesis Partners, Clal Industries and Investments Ltd. and Portview Communications Partners. The funds will be used to support market penetration and to extend the company's product line. In parallel with the funding, a marketing cooperation agreement has been signed between Intel Corporation and Aternity, under which Aternity’s unique application management solution will include support for Intel’s new vPro systems.

"We are pleased to receive this investment and become a member of the Intel Capital portfolio of companies," said Trevor Matz, President & CEO of Aternity, Inc. "The relationship with Intel builds a solid foundation for us to continue to serve major global customers."

“Aternity brings impressive performance management value to enterprise IT,” said Gregory Bryant, vice president and general manager of Intel’s Digital Office Platforms Division. “Once ported to our virtual appliance technology, it will take advantage of the native hardware manageability features of the Intel® vPro platform to monitor end user experience and give IT Administrators direct, actionable data on how to enhance service,” he said. “With Aternity,
organizations can minimize the spiraling costs associated with business application interruptions,” Matz said. “The Aternity solution automates and simplifies fault-detection and analysis of application responsiveness. It utilizes
powerful end user performance monitoring and advanced analytics that let IT keep Line of Business service at the levels required for operational success by addressing infrastructure and application slowdowns before they impact
business."

“We believe the cooperation with Intel’s vPro system will significantly improve the market adoption of Aternity’s product thereby increasing the odds for success,” said Uri Arazy, investment manager at Intel Capital.

About Aternity, Inc.

Aternity, Inc. is the leader in frontline performance intelligence for Global 1000 enterprises. Aternity arms business managers and IT departments with precise information on how frontline users' experiences impact business results, and gives them a path to constant business improvement. The Aternity management team brings together leading entrepreneurs, technologists and business leaders from the US and Israel. Among the investors in Aternity is Intel Capital, Vertex Venture Capital, Genesis Partners, and Clal Industries and Investments LTD. Based in Westborough, Massachusetts, Aternity delivers value to its customers through innovative technology and a visionary understanding of the impact of IT on business performance. To learn how Aternity can bring Winning Performance to Your Frontline and to find out if you qualify for a free proof-of-concept, visit www.aternity.com or call (508) 475-0414, Ext. 222.

About Intel Capital

Intel Capital, Intel's venture capital 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 and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$6 billion in nearly 1,000 companies in more than 40 countries. In that time, about 180 portfolio companies have been acquired by other companies and other 155 have gone public on various exchanges around the world. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.