Framingham, Mass. — July 7, 2006 — Netezza today announced that it has been recognized by industry analyst firm IDC as the data warehouse appliance market leader in a new report titled, “Business Analytics Appliances are Here to Stay.” The June 2006 report provides an analysis of anticipated marketplace evolution and highlights Netezza as a pioneering company with a disruptive influence on traditional data warehousing tools.

According to IDC, data warehouse appliances are gaining in popularity and fulfilling “real, existing needs of a specific segment of the market.” Companies surveyed for the report listed lower total cost of ownership, lower maintenance requirements and faster deployments as the top reasons for evaluating a data warehouse appliance that combines server, storage and software into a single preconfigured bundle. IDC estimates that the data warehouse appliance market will have a compound annual growth rate of 70% over the next five years if the current rate of organic growth continues.

“In 2003, IDC identified Netezza as a revolutionary data warehouse appliance. Since then, it has become clear that the adoption of data warehouse and business intelligence appliances is not just a passing trend and that awareness of this category and of Netezza is growing,” said Dan Vesset, research director, Analytics and Data Warehousing Software for IDC. “Data warehouse appliances are increasingly making an impact in the market as more end users evaluate, adopt and deploy these solutions in support of their business analytics needs.”

Of the three types of appliances discussed in the report – complete stack data warehouse appliances (combine hardware and software), virtual data warehouse appliances (just software) and business intelligence (BI) appliances, IDC found that the complete stack data warehouse appliances like that of Netezza’s “have more of the important characteristics desired by end users than do virtual data warehouse appliances. Pretuning, preconfiguration, single-vendor responsibility and fast implementation times are the highest valued features of these data warehouse appliances.”

“As data volumes continue to increase, companies are looking for easy and cost-effective ways to conduct business analytics and simplify their data warehousing infrastructure,” said Ellen Rubin, vice president of marketing for Netezza. “According to IDC, 23% of organizations expect their data warehouse to at least double in size over the next three years. This creates a tremendous need for data warehouse appliances that can quickly scale to meet market demand. The Netezza Performance Server® (NPS®) appliance is being used by over 65 market-leading companies around the world and is transforming the way they use analytics to drive their business.”

The NPS system is the market-leading data warehouse appliance, built specifically to analyze terabytes of detailed data 10 to 100 times faster than existing data warehouse options, at half the cost. The NPS system stores, filters and processes terabytes of records within a single unit, analyzing only the relevant information for each query. Netezza has placed the CPU power next to the data, allowing the NPS system to speed through processes that would occupy most data warehouse systems for hours, or even days, thereby enabling dramatic increases in productivity across the organization. Customers who have recognized the performance benefits of Netezza’s approach include Ahold, Amazon.com, Cingular Wireless, CNET Networks, Debenhams, Epsilon, Orange UK, Premier, Inc., Shoppers Drug Mart Corporation, The Carphone Warehouse and The TJX Companies.

About Netezza Corporation
Netezza, the global data warehouse appliance market leader, enables enterprises to make all of their data actionable – quickly, simply and affordably. The Netezza Performance Server family of products delivers breakthrough performance, unmatched ease of deployment and operation, and innovative flexibility and scalability at a fraction of the cost of traditional data warehouse solutions. By architecturally integrating database, server and storage within a single appliance, the NPS system delivers 10 to 100 times the performance at half the cost of existing systems. Based in Framingham, Mass., Netezza has offices in Washington, DC, the United Kingdom and Asia Pacific. The Company is backed by leading venture capital firms, including Matrix Partners, Charles River Ventures, Battery Ventures, Orange, Sequoia Capital and Meritech Capital Partners. For more information about Netezza, please visit www.netezza.com.

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