Surgient, the leader in Virtual Lab Management Applications for automating software demo, test and training labs, today announced that it achieved record company results in 2006, closing more than five million dollars in sales in the fourth quarter alone. New customer wins, growth with current customers, technological advances, expanded partnership agreements, and new venture funding aided in making 2006 an overwhelming success.

"Our very strong growth in 2006 was supported by a wave of successful milestones and capped by our incredible fourth quarter," said Bill Daniel, Surgient's president and CEO. "Every sector of our business grew as we continually outpaced our competition in head-to-head comparisons. We expect to accelerate our growth in 2007 with continued and rapid adoption of our virtual lab management applications for software testing, training, demonstration and evaluation."

Surgient's growth in 2006 was made possible by a number of factors, including:

Increasing customer success

• New enterprise customer wins within Global 2000 Enterprises: In 2006 numerous organizations, such as Target Corporation, Sisters of Mercy Health System, Crossroads Systems and Dell chose Surgient Virtual        QA/Test Lab Management System (VQMS) for test lab management over competitive offerings.
• Continued strong demand from the world's largest software vendors: Surgient's footprint in the ISV market has grown steadily with new customer wins and increased usage of the Surgient Virtual Demo Lab     Management System (VDMS) and Surgient Virtual Training Lab Management System (VTMS). Throughout the year, Surgient saw a steady expansion of services in its major ISV customers such as HP/Mercury, EMC, Business Objects, Hyperion, webMethods, Quest Software and Microsoft and an expanding list of new customers such as BMC, CA, FileNet, Hyperion, NetApp and others.
• Customer loyalty: In Q4 2006, Surgient's customer renewals were more than double the previous year's on a dollar basis. 

Tremendous market momentum

• Additional funding: During the summer of 2006, the company closed a $20 million Series C round of investment. Lead investors were Goldman, Sachs & Co. and Crosslink Capital. The Series C funding is fueling the        expanded sales and marketing footprint for Surgient. 
• Partnership progress: Surgient deepened its technological and marketing relationships with several partners. The most prominent were HP/Mercury and Microsoft, resulting in several partner-driven new customer wins.
  

Strong technology leadership

• Product Innovation: In October 2006, Surgient announced availability of version 5.0 of Surgient Virtual Lab Management Applications. Built on the next generation Virtualization Control Server(TM) (VCS) platform,        Surgient Virtual Lab Management solutions create, manage and deliver "virtual labs" -- applications that orchestrate and optimize shared virtual infrastructure. 
• Stellar Technological Reviews: Surgient won high praise from reviewers like Andrew Binstock of InfoWorld -- rating Surgient VQMS an 8.0 in the September 21, 2006 issue. This review was instrumental in InfoWorld's        recognition of Surgient's product as one of the Technologies of the Year for 2007 in the January 1, 2007 issue.