Citrix acquires XenSource

New Delhi

August 17th, 2007

Citrix Systems announced a definitive agreement to acquire XenSource, a
privately held leader in enterprise-grade virtual infrastructure solutions, for
approximately $500 million in a combination of cash and stock, which includes
the assumption of approximately $107 million in unvested stock options. This
acquisition moves Citrix into adjacent server and desktop virtualization
markets, expected by Citrix to grow to nearly $5 billion over the next four
years. The combination of Citrix and XenSource brings together significant
customer, technical, channel and go-to-market synergies. This will allow Citrix
to extend its leadership in the broader application delivery infrastructure
market by adding key enabling technologies that make the end-to-end computing
environment far more flexible, dynamic and responsive to business change. The
acquisition will also strengthen each company's strong partnership with
Microsoft and commitment to the Windows platform. The acquisition is expected to
close in the fourth quarter of 2007 subject to the satisfaction of closing
conditions.

"The combination of Citrix and XenSource brings together both
presentation and server virtualization to deliver more choice and flexibility to
the market, particularly Citrix's strong installed base," said John
Humphreys, program VP of Enterprise Virtualization for IDC.

Upon close of the acquisition, the XenSource team and products will form the
core of the new virtualization and management division of Citrix dedicated to
building and growing these important new businesses. Peter Levine, XenSource,
CEO, will lead the new division, reporting directly to Mark Templeton, Citrix
president and CEO. Under Peter's leadership, Citrix is also committed to
maintaining and growing its support for the Xen open source community, led by
XenSource co-founder and Xen project leader, Ian Pratt. Between now and the
close of the acquisition, XenSource will work with the key contributors to the
Xen project to develop procedures for independent oversight of the project,
ensuring that it continues to operate with full transparency, fairness and
vendor neutrality - principles that are critical to the continued role of Xen as
a freely available open source industry standard for virtualization.

"Now customers will have a strong alternative that is open, proven and
backed by one of the most successful end-to-end software infrastructure leaders
in the entire industry," said Peter Levine, CEO of XenSource. "This
move is not about competing for the five percent of the market that is already
being served. It's about steering into the 90 percent white space that is wide
open, both at the server and in new emerging opportunities at the desktop."

"This announcement represents a key milestone for the Xen project,"
said Ian Pratt, leader of the Xen project and co-founder of XenSource.
"Citrix is committed to our community and the principles of transparency
and neutrality that allow us to work together on the reference standard for
virtualization, promoting the rapid, ubiquitous adoption of
virtualization."

The acquisition will also strengthen each company's strong partnership with
Microsoft and commitment to the Windows platform.

Citrix currently intends to distribute the XenEnterprise product line through
more than 5,000 channel partners. The company also plans to leverage its strong
relationships with leading server and datacenter infrastructure partners to
create additional routes to market through OEM sales channels.