Press Release

Aliso Viejo, CA and London, UK – September 04, 2008 – 3Tera, Inc., the leading innovator of cloud computing technology and utility computing services and DNS Europe Ltd, a London-based pan-European hosting and outsourcing business announced today the launch of grid hosting services powered by the AppLogic grid operating system from 3Tera Inc. Available immediately, DNS Europe's dual-facility grid hosting services will provide customers across Europe with the choice of United Kingdom or Southeastern European grid hosting and outsourced multi-tier AppLogic support services. Initial offerings include Virtual Grid Server and Virtual Datacenter products to meet the current market demand. Offer details and pricing are available at www.dneseurope.net.

"3Tera's innovative technology allows us to deliver hosting services in a radically new way", said Stephen Hurford, communications director, DNS Europe. "At DNS Europe Ltd we are now able to utilize the grid infrastructure and deliver our own service offerings quicker, cheaper and more efficiently than we believed to be possible.”

"DNS Europe offers not only a true utility computing environment, but also provides managed services and outsourced development for their customers,' said Bert Armijo, senior vice president, Sales, Marketing and Product Management, 3Tera, Inc. "This is an excellent condition for users, seeking to meet the dual challenges of reducing infrastructure costs while increasing volume, adding features and expanding the reach of their Web services. We are excited to see the next level of interest for our partner’s offerings from both Web companies and SaaS vendors."

"We are entering a new phase of grid and utility computing services where hybrid infrastructure solutions will have a key role to play," continues Hurford. "In the new Software-as-a-Service market paradigm customers with existing overloaded infrastructure will be looking for ways to farm-out specific system functions to on-demand providers through Cloud-Bursting. DNS Europe is looking at ways to cater for this demand."

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 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.