Letter to Customers and Partners

Dear Customers and Partners,

On July 30, 2012, Oracle announced that it has entered into an agreement to acquire Xsigo Systems, a leading provider of network virtualization technology that simplifies cloud infrastructure and operations by allowing customers to dynamically and flexibly connect any server to any network and storage. The transaction is subject to customary closing conditions and approvals and is expected to close in the fall of 2012. Until the transaction closes, Oracle and Xsigo will continue to operate independently, and it is business as usual.

Companies are looking to deploy virtual servers to reduce data center costs and meet the agility and performance demands of cloud environments. Virtualized servers require more bandwidth and connections to external network and storage resources, which can lead to higher connectivity costs and complex data center management.

Xsigo's software-defined network products help customers increase asset utilization and application performance while reducing costs by delivering compute, storage and network resources that can be dynamically reallocated on demand. Xsigo complements Oracle's software, server, storage, and network product portfolio, and the combination is expected to deliver the most complete set of virtualization capabilities for cloud environments.

More information about the proposed combination of Oracle and Xsigo can be found at oracle.com/xsigo

We appreciate your continued support.


John Fowler
Executive Vice President

Oracle is currently reviewing the existing Xsigo product roadmap and will be providing guidance to customers in accordance with Oracle's standard product communication policies. Any resulting features and timing of release of such features as determined by Oracle's review of Xsigo's product roadmap are at the sole discretion of Oracle. All product roadmap information, whether communicated by Xsigo or by Oracle, does not represent a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. It is intended for information purposes only, and may not be incorporated into any contract.

Cautionary Statement Regarding Forward-Looking Statements
This document contains certain forward-looking statements about Oracle and Xsigo, including statements that involve risks and uncertainties concerning Oracle's acquisition of Xsigo, anticipated customer benefits and general business outlook. When used in this document, the words "anticipates", "can", "will", "look forward to", "expected" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Oracle or Xsigo, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this document due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that the anticipated synergies of the combined companies may not be achieved after closing, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which either company does business may change or deteriorate, and Oracle or Xsigo may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Oracle or Xsigo. You are cautioned to not place undue reliance on forward-looking statements. Neither Oracle nor Xsigo is under any duty to update any of the information in this document.

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