Press Release

Aliso Viejo, Calif.—July 24, 2007—BT Plc. (NYSE: BT), one of the world's leading providers of communications solutions and services, and 3Tera, Inc., the leading innovator of grid computing and utility computing services for online applications, announced today that BT has signed a multi-year deal to use 3Tera's AppLogic grid operating system.

3Tera's AppLogic grid operating system eliminates the need for co-location, private racks and managed services by enabling the assembly, deployment and management of infrastructure and applications using only a browser and basic IT skills.

Kevin Nickels, BT's Director, Concept to Market, commented, "After reviewing numerous solutions and considering building a solution internally, we determined that 3Tera's AppLogic is the solution best positioned to meet our immediate needs. AppLogic enables BT to deliver market leading on-demand computing services."

Vlad Miloushev, president and CEO of 3Tera, said, "We were impressed by BT's market foresight and leadership in the Telco industry. They appreciate the need to stay on top of the utility computing market. By adopting AppLogic, BT will continue to keep its leadership in enabling major new operational capabilities."

"BT has led the industry by aggressively investing billions of dollars a year to build their next generation network, powering the growth of new services such as VoIP and Software as a Service (SaaS)" said Andrew Schroepfer, founder of Tier1 Research (www.T1R.com), a research group that tracks the competitive hosting, co-location, Internet services, and software-as-a-service markets for their subscribers". 3Tera has established themselves as a technology enabler in the utility computing space, and BT's partnership with them should give them the ability to offer cutting edge services that are based around simplification; reusable capabilities; and hosting of software-based services running as applications."

BT, one of the world's leading providers of communications solutions and services, operates in 170 countries. The company's principal activities include networked IT services; local, national and international telecommunications services; and higher-value broadband and internet products and services. For more information, visit http://www.bt.com/Thegroup/.


About AppLogic
The AppLogic grid operating system is the first commercial platform designed specifically to enable true utility computing. The operating system converts hosted commodity servers into scalable grids on which users can visually operate, deploy and scale transactional Web applications without any modification of code. At the heart of AppLogic is 3Tera's disposable infrastructure technology, which makes distributed Web applications self-contained and portable—enabling them to run on any grid anywhere in the world. As a result, applications become completely separated from the hardware infrastructure traditionally needed to run them; allowing users to remotely manage their applications through a Web browser, and provision resources as needed.


About 3Tera, Inc.
3Tera, Inc. is the leading innovator of grid and utility computing, simplifying the deployment and scaling of Web applications. Named a 2007 Category Breaker by NetworkWorld magazine, 3Tera's AppLogic grid operating system enables the first true utility computing services that completely remove the cost and complexity associated with infrastructure. The operating system converts commodity servers into scalable grids on which users can visually operate deploy and scale transactional Web applications without any modification of code. Software-as-a-Service providers, Web 2.0 companies, enterprises and open source developers can now get new online services quickly to market by utilizing resources from commodity hosting providers on a pay-as-you-go basis, while maintaining complete control of applications including visual operation, scaling and on-demand resource provisioning using only a browser. For more information, visit www.3tera.com.