Isilon Announces Q2 Results update from July 2007

Isilon acquired 91 new customers in the second quarter of 2007, an increase of 117 percent over the 42 new customers acquired in the second quarter of 2006, representing the best quarter of new customer growth in the company's history. Isilon's total customer base grew to 539, successfully crossing the 500th customer milestone during the quarter (see separate press release).

Isilon continued to leverage its growing customer base and unique modular "pay as you grow" clustered architecture, with reorders from existing customers accounting for more than half of total revenue, in line with historical trends. A particularly large reorder from an existing customer impacted gross margin for the quarter, but otherwise pricing remained consistent with prior quarters.

Isilon expanded its line of award winning clustered storage systems with the introduction of the new Isilon IQ 9000 and EX 9000 systems products, delivering the industry's first and only storage system to scale up to 1.6 Petabytes of capacity in a single file system and single volume, achieving scalability levels 100 times that of traditional NAS and SAN storage systems.

Isilon expanded its enterprise-class software line with its SmartQuotas software application, enabling customers to partition a single, highly scalable, shared pool of storage into smaller allocations assigned to individual users or groups and providing thin provisioning capability to optimize utilization. With the introduction of SmartQuotas, Isilon's suite of licensable software increased to five applications.

Isilon continued to leverage its global channel of trained resellers and distributors, generating 58 percent of second quarter sales with its channel partners compared with 45 percent in the same period a year ago.

Isilon IQ clustered storage systems were named "Best of Show" at Bio- IT World Conference and Expo in the event's Information Technology (IT) Infrastructure category in recognition of new products that demonstrate exceptional technology innovation across the life sciences research, discovery and clinical trials process.