Pano Logic Extends Series B Funding to $18 Million

Business Wire, Feb 3, 2009

Leading Desktop Virtualization Company Continues Momentum Into 2009 With a Series B Extension Led by Foundation Capital and Goldman Sachs

MENLO PARK, Calif. -- Pano Logic[TM], the leader in server-based virtual desktop computing, today announced it has closed an extension to its Series B round of $6 million led by Foundation Capital and Goldman Sachs. This funding brings the total Series B financing to $18 million, and completes a year of phenomenal expansion for Pano Logic, which experienced quarter-over-quarter growth and has received extensive industry recognition since bringing its first product to market in late 2007.

"It's been a record year for Pano Logic and we've achieved many key milestones. This new financing round enables us to expand the company to accommodate market demand, and continue to enhance our comprehensive VDI solution," said John Kish, president and CEO of Pano Logic. "Since joining the company late last year, I've been impressed by the product and market opportunities. Our goal continues to be to deliver a turn key solution that provides the fastest and easiest route to deploying a virtual desktop infrastructure."

Over the course of 2008, Pano Logic has significantly increased its install base and signed more than 150 partners including one of the leading distributors, Avnet. Additionally, the Pano Virtual Desktop Solution received a SearchServerVirtualization.com Product of the Year award, the red dot 2008, and Good Design 2008 product design awards. Pano Logic was also named a finalist for the 2008 Red Herring North America 100 Awards, which recognizes startups that will lead the next wave of disruption and innovation.

"As businesses look for new ways to leverage their existing virtualization infrastructure and decrease the costs of desktop PCs, desktop virtualization will continue to emerge as a go-to technology," said Pete Perrone, managing director at Goldman Sachs. "Pano Logic demonstrated quarter-over-quarter growth throughout 2008, and we believe the company's opportunities will only continue to expand as more businesses look for easy ways to deploy VDI."

"Once we virtualized the servers, consistency was created within the data center, allowing us to turn our attention to the workstations to begin looking for ways to proactively solve our desktop challenges regarding management, security and power," said Kunal Patel, IT director at Nina Plastics. "Since Pano VDS is a zero client, we just plugged it in and it worked right out of the box. With the Pano Manager and the VMware management features, the solution didn't need a lot of configuration and it took around 10 minutes to get up and running. The Pano Logic concept was very simple, so we quickly saw how Pano VDS could replace our other existing desktops."

About Pano Virtual Desktop Solution

The Pano Virtual Desktop Solution includes the hardware clients and software components required to turn standard virtual infrastructure into a purpose-built virtual desktop solution. The key components of the solution are the:

* Pano Device - Designed by an award-winning industrial design firm, the Pano device is a zero client - no memory, no operating system, no drivers, no software and no moving parts. The Pano device connects keyboard, mouse, display, audio and USB peripherals over an existing IP network to an instance of Windows running on a virtualized server. Pano is power friendly, consuming only 3% of the energy consumed by a traditional desktop computer.

* Pano Management Server - A centralized service and web-based management interface which enables administrators to manage the entire virtual desktop installation by integrating with existing directory services and virtual infrastructure managers.

* Pano Desktop Service - A lightweight service residing within each desktop virtual machine links peripherals attached to the Pano to the unmodified Windows drivers residing in the virtual machine. This design guarantees that all existing Windows drivers will work without modification.

About Pano Logic

Founded in 2006, Pano Logic develops virtualization-based software and hardware solutions that deliver superior desktop computing. The company is privately held, and backed by leading investment firms Foundation Capital and Goldman Sachs. Pano Logic is headquartered in Menlo Park, California. For more information about Pano Logic, visit www.panologic.com.