Full Featured SIMtone VDU Enterprise Service Offers Customers Low Cost Scalability, Higher Performance Levels and Cross Platform Support for Windows and Linux

Durham, NC (June 4, 2007) - XDS, Inc., a privately held company targeting the digital virtualization market, today announced the general availability of the SIMtone� VDU� enterprise service. The SIMtone VDU service is designed to securely deliver corporate desktops to employees as an on-demand, highly-scalable �digital dial tone� service, seamlessly on the enterprise network or the Internet.

"The full featured SIMtone VDU enterprise service offering provides many new capabilities including, local printing support via USB, automatic time zone adjustment service, and plug-and-play connectivity for Windows XP or Linux virtual hosted servers. It also includes a Web proxy facility and SIMtone XAS, a 100% network provisioning and administration portal designed to allow customers to activate and manage servers, users, service features and devices.

The market for virtualization solutions is growing rapidly. According to Michael Rose, Associate Research Analyst at IDC covering Enterprise Virtualization Software: �IDC's continuing research around desktop virtualization technologies leads us to believe that there are significant opportunities within the space. XDS is one vendor within this ecosystem that we are tracking, and is one of many companies realizing success in the market.�

The SIMtone VDU service is a carrier-grade �digital dial tone� service provisioned through a geographically diverse, multi-homed, fully redundant network with seamless failover capability. As an on-demand service, enterprises can easily scale their operations and deliver desktop Windows environments without owning and managing any additional data center, network or endpoint assets other than the centralized desktop server of choice. This eliminates upfront IT investment, and ongoing infrastructure management and maintenance costs.

According to several trial customers, the user experience and performance has exceeded service level expectations. �The SIMtone VDU service is so intuitive and easy to use that I do not even realize I am using a virtual desktop rather than my laptop,� explained a partner in a New York law firm that has been trialing the SIMtone VDU enterprise service for the past two months. �The service usability and new performance levels make it indistinguishable from our previous PC and laptop environments.�

Enhanced Features of the SIMtone VDU Service: � Seamless USB services � offers the ability to print on a local USB printer from any SNAP device and transfer files to and from USB storage devices � Automatic Timezone Adjustment service � offers automatic timezone adjustment of the user Windows desktop, keeping it in synch with the timezone of any SNAP device � Linux Desktop support � offers plug-and-play �digital dial tone� connectivity for Linux shared or virtual desktop servers � Virtual Desktop Servers support � offers plug-and-play connectivity for Windows XP or Linux virtual hosted servers without connection brokers or additional equipment requirement � Web Proxy service � offers enterprises the ability to deliver secure browser access through their own hosted webserver � SIMtone XAS service � offers enterprises the ability to activate, manage and profile access and policies to an unlimited number of Linux and Windows desktop servers for each employee on demand, in real time, without any server software installation or reconfiguration Leveraging the company�s patent-pending SIMtone �digital dial tone� technology, the SIMtone VDU service automatically provides network, session and device control, provisioning, and management capabilities. The commercial release of the SIMtone VDU service includes the completion of the carrier grade SIMtone provisioning infrastructure as well.

�We are pleased to announce the commercial release of the SIMtone VDU service,� stated Tim Mason, EVP Operations at XDS, Inc. �The service provides a �digital dial tone� approach to IT and desktop management systems, remote access environments, business continuity and disaster recovery. It also enables enterprises to provide secure desktop computing environments to employees in real time, no matter where they are located.�

Available today, the SIMtone VDU enterprise service is priced at a monthly charge of $39.95 per user, and includes Standard Enterprise Connectors required to enable each server to connect to the SIMtone VDU service platform. For additional pricing information, please visit www.simtonevdu.com.

About XDS, Inc.
XDS, Inc. is a privately held company targeting the digital virtualization market. Backed by Kodiak Venture Partners and Motorola Ventures, XDS developed the first �digital dial tone� service. Comparable to standard telephone service, its patent-pending service, SIMtone, provides a digital dial tone that is pervasively available across broadband networks, and automatically provisions and manages network and session connectivity, security and devices. The SIMtone can be used to deliver digital services such as desktop environments, applications and media content to all types of non-processing devices, as well as PCs, thin clients, mobile phones, set-top boxes and PDAs. For more information, visit: www.simtone.net.