PRESS RELEASES 
XDS Acquires Thintropy, Inc. to Expand SIMtone Virtual Desktop Services to Consumer Market
Misha Nossik, Founder of Thintropy, Will Serve New Role as President of XDS Canada
Responsible for Consumer-Oriented Virtualization Products and Services
Durham, NC (May 9, 2007) – XDS, Inc., a privately held company targeting the digital virtualization market, today announced the acquisition of Thintropy, Inc., a Canada-based developer of consumer-grade desktop virtualization tools. As part of the acquisition, Misha Nossik, founder of Thintropy, will now serve as President of newly formed XDS Canada – a consumer desktop services division of XDS. This acquisition will build on XDS’ strategy focused on the growing desktop virtualization market.
“With the SIMtone™, XDS has created a pervasive new digital dial tone that enables Thintropy to deliver consumer desktop environments to any device, simply and effectively, without any complicated requirements for the user,” stated Mr. Nossik. “XDS and Thintropy together will change the way people access all aspects of their digital lifestyle, anytime, anywhere, securely over the Internet.”
Since announcing its flagship SIMtone VDU™ in January 2007, XDS has seen strong traction in the desktop virtualization market as evidenced by several trials at leading organizations which have already been successfully deployed. SIMtone VDU securely delivers corporate Windows desktops to employees as an on-demand, highly scalable utility service, anywhere across enterprise networks or the Internet. The acquisition of Thintropy is the next step for XDS as the company plans to deliver additional SIMtone services to the enterprise and government sectors and, soon, to the mainstream consumer market.
“We are truly delighted to have Misha and his talented team on board,” said Mario Dal Canto, Chairman of the Board and CEO of XDS. “Thintropy’s vision, combined with the SIMtone’s pervasiveness, low cost and ease-of-use, will create a lifestyle-changing experience for the digital consumer. Our SIMtone technology provides an array of market opportunities to deliver new products and services across a range of platforms and devices. Leveraging the technology and expertise of the Thintropy acquisition, XDS is well-positioned to broaden its market reach into these markets.”
As President of XDS Canada, Mr. Nossik will be responsible for managing a family of new consumer-oriented virtualization products and services. Mr. Nossik founded Thintropy in 2004 in response to the need for an affordable, easy-to-use alternative to personal computing. Prior to founding Thintropy, Mr. Nossik spent two years with IDT Inc. (following the acquisition of Solidum) as Chairman of the Network Processing Forum (NPF) where he promoted the standardization and use of network processors. While at Solidum, Mr. Nossik served as CEO and later as EVP, creating the vision for network processing architecture, playing key roles in product definition and raising more than $24 million in VC funding. Mr. Nossik’s additional startup experience includes Skystone, which was acquired by Cisco, and Timestep, later acquired by Newbridge (Alcatel).
“Mr. Nossik and his dynamic team bring much experience and talent required for us to tap into other segments of the virtualization space – especially the consumer market,” added Mr. Dal Canto. “We are very excited to begin this relationship and confident that SIMtone will enable Thintropy’s vision to succeed and play a key role in the consumer desktop virtualization market.”
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” utility service. Comparable to standard telephone service, its patent-pending, Secure Interactive Mobile Tone (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.xdsinc.net.