Enhances Functionality for 8 million SaaS Customers

TARRYTOWN, N.Y., September 16, 2008 – Open-Xchange today announced a comprehensive feature update of its Open-Xchange Hosting Edition software that is delivered via Internet Service Providers, telcos and web hosting companies.

In the coming weeks, leading service providers like 1&1 Internet, Network Solutions, OVH, Hostpoint and others will make the new features available to more than 8 million users at no additional cost and with no service disruption.

The new features include:

* Integration of server-based plug-in architecture using the OSGi framework

Open-Xchange now supports the OSGi framework, which enables online updates for 24/7 availability of Open-Xchange software. In addition, support of the OSGi framework turns Open-Xchange Hosting Edition into an open SaaS platform, which makes possible integration of additional SaaS applications, such as CRM or ERP.

* New security and filter features for email

Open-Xchange automatically detects potentially harmful phishing emails and also enables users to select the option to block pictures in HTML emails. Plus, now users can manage their emails based on individual server side filter rules, to reduce their day-to-day workload. Saas providers can add this additional module easily to existing installations.

* Integration of GUI based plug-in architecture

The plug-in architecture for the graphical user interface (GUI) enables services providers to  integrate and offer additional 3rd party applications such as Instant Messaging tools or support for text messages and fax to help unify communications and reduce the need for managing multiple address books.

* Customization of the grafical user interface (GUI)

Support for "themes" and "skins" gives service providers the ability to offer different user interface appearances and allows enterprise customers to adapt the look and feel of Open-Xchange to different themes and their corporate design.

* Support of mashup capabilities

Mashup capabilities powered by UWA (Netvibes Universal Widget API) enable easy integration of web applications, such as RSS feeds, podcasts, and video channels, so that Open-Xchange serves as the user's center for information.

“The new features were all developed in close cooperation with our service provider partners and reflect the feedback and ideas of their end customers," said Rafael Laguna, CEO of Open-Xchange. "Using hosted software delivered as SaaS provides users with an affordable alternative that is equivalent to on-premise enterprise collaboration software and helps to streamline communications and improve their productivity."

Oliver Mauss, CEO of 1&1 Internet Inc., said, “Since we launched our Open-Xchange based groupware called 1&1 MailXchange in the U.S. in July, we've received very positive feedback and had strong sales numbers. As a leader in delivering innovative technology, 1&1 will continue to call upon proven open-source technologies that enable our customers to benefit at greatly reduced licensing costs.”

"During the past few months, we have seen strong demand from our SMB customer base for advanced collaboration features. The easy-to-integrate Open-Xchange software enabled us to offer new services to our customers in a very short timeframe," said Yvan Knapp, Chief Customer Officer, Hostpoint AG.

"Email and collaboration are a natural fit for the Software-as-a-Service delivery model," said Amy Wohl, president of Wohl Associates. "The early success of Open-Xchange blazes a trail for companies converting from on-premise software to the SaaS delivery model. Rolling out these new software features shows just how well SaaS can work for both service providers and end users."

Open-Xchange Hosting Edition is designed to enhance efficiency and teamwork in small- and medium-sized businesses with its business-class email, advanced personal information management (PIM) including calendaring, contact and task management. The centralized document management system allows for users to attach documents to corresponding tasks, as well as share them without emailing large files. Open-Xchange's AJAX-based web interface is available anywhere with Internet access at any time. This gives companies with multiple locations and employees working out of office, the flexibility to effectively share information. With Open-Xchange, users also have the option of synchronizing with Microsoft Outlook and almost every mobile device such as Apples' iPhone, Blackberry and Palm Treo. Open-Xchange Hosting Edition provides organizations with an alternative to expensive proprietary collaboration software and makes it easy for to take advantage of the cost benefits of open source without requiring prior Linux know-how.

About Open-Xchange Inc.

Open-Xchange Inc. is the innovator of scalable and integrated open source email and collaboration solutions for enterprises, academic institutions, and government authorities. Open-Xchange Hosting Edition enables web hosting companies to provide an easy-to-use and feature-rich application delivered as Software as a Service (SaaS). The Open-Xchange Hosting Edition is architected to integrate into a hosting provider’s existing infrastructure such as authentication, provisioning, billing, and email storage and does not require that these systems be replaced.

To date, Open-Xchange has grown to more than 8 million paid mailboxes this year (a 4 times increase from last year) as a result of deals with 1&1 - the #1 hosting company worldwide; Network Solutions - the #3 hosting company in the U.S.; OVH - the #1 hosting company in France; Hostpoint - the #1 hosting company in Switzerland.

Open-Xchange Inc. is a privately-held company headquartered in Tarrytown, N.Y., with research, development, and operations in Olpe and Nuremberg, Germany. For more information, please visit www.open-xchange.com.