Press Release

Aliso Viejo , CA – May 27, 2008 – 3Tera, Inc., the leading innovator of cloud computing technology and utility computing services, announced today that Gartner, Inc., the world's leading information technology research and advisory company, named 3Tera a "Cool Vendor" its March 2008 "Cool Vendors in IT operations, 2008" report.

Authored by Gartner analysts Donna Scott, Milind Govekar, David Williams, and Will Cappelli, "Cool Vendor in IT operations, 2008," highlights six vendors in the IT operations management area that provide innovation in areas such as advertisement-based and open-source-based management, availability and performance management, testing and real-time infrastructure. The report evaluated 3Tera's AppLogic grid operating system, which enables the first true utility computing services that completely remove the cost and complexity associated with infrastructure. The full Gartner, Inc. "Cool Vendor in IT operations, 2008" report is available for Gartner clients at http://www.gartner.com/DisplayDocument?id=634930.

"We are honored to be highlighted in Gartner's 'Cool Vendor in IT operations' report, as a company that any IT I&O executives in midsize and large enterprises, hosting provider CTO or service-line manager seeking to offer shared utility computing services to its clients should assess" said Bert Armijo, Senior Vice President of Sales, Marketing and Product management, 3Tera, Inc. "We believe our inclusion in the report is recognition of us as a leader and innovator with our AppLogic grid operating system and further validates the importance of having a good architectural model for running and scaling Web 2.0 applications."

About 3Tera's AppLogic Grid Operating System
The AppLogic grid operating system is the first commercial platform designed specifically to enable true utility computing. The system converts commodity servers into scalable grids on which users can visually deploy, operate and scale transactional Web applications without any modification of code. At the heart of the system is 3Tera's disposable infrastructure technology that packages applications with the definition of the infrastructure required to run them into self-contained and portable entities, able 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 Gartner’s Cool Vendors Selection Process
Gartner's listing does not constitute an exhaustive list of vendors in any given technology area, but rather is designed to highlight interesting, new, and innovative vendors, products, and services.  Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness of a particular purpose. Gartner defines a cool vendor as a company that offers technologies or solutions that are:

• Innovative, enable users to do things they couldn’t do before
• Impactful, have, or will have, business impact (not just technology for the sake of technology)
• Intriguing, have caught Gartner’s interest of curiosity in approximately the past six months.

About 3Tera, Inc.
3Tera, Inc. is the innovator of cloud computing technology and utility computing services, simplifying the deployment and scaling of Web applications. Named "Cool Vendor in IT operations, 2008" by Gartner Group and one of the "Top 20 Companies to Watch in 2008" by Linux Magazine, 3Tera offers the AppLogic ™ grid operating system that enables the first true utility computing services to completely remove the cost and complexity associated with infrastructure. AppLogic 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. For more information, visit www.3tera.com.