Press Release

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Amy Swanson
OutCast Communications
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Zimbra Secures $14.5M in Strategic Series C Funding

Duff Ackerman & Goodrich lead a strategic investment round that included Presidio STX, the U.S.-based venture investment subsidiary of Sumitomo Corporation, as a strategic investor to accelerate Zimbra customer growth and internationalization

SAN MATEO, CA - April 6, 2006 - Zimbra (http://www.zimbra.com/), a leader in open source, next-generation collaboration and messaging, today announced the completion of a $14.5 million Series C round of financing. The investors in this round, Presidio STX, the U.S.-based venture investment subsidiary of Sumitomo Corporation, and Duff Ackerman & Goodrich ("DAG") join existing investors Benchmark Capital, Accel Partners, Redpoint Ventures and Inventures Group to complete the series C round.

Zimbra will use this strategic funding to extend the company's rapid customer growth and worldwide adoption - especially in markets such as Japan - and to fuel the vigorous growth of Zimbra's emerging on-demand partner program. Additionally, Zimbra will capitalize on this new backing to continue innovating for current customers, including public companies such as H&R Block and Zip Realty, and fast growing small to mid-sized companies.

"We are excited to have Duff, Ackerman and Goodrich and Sumitomo backing Zimbra, and are looking forward to a strategic working relationship in Japan with Sumitomo," said Satish Dharmaraj, CEO of Zimbra.

Seiji Sato, Senior Director, Marketing & Planning of Sumitomo said, "We see Zimbra as an open source company set to transform enterprise collaboration. The culture of innovation, the amazing management team, and the product are ready for international expansion into Japan and other important markets."

"As companies like Zimbra innovate on applications which have been stagnant for years, markets are opened up and invigorated," said John Cadeddu of Duff Ackerman & Goodrich. "Zimbra is changing the way that enterprises look at collaboration, offering an unprecedented feature set, and is set to continue on its tremendous growth path."

Availability:

For more information on Hosted Zimbra, including pricing and availability, please visit http://www.zimbra.com/partners/zimbra_hosting.html. For details on Zimbra's Hosted Partner program, please visit http://www.zimbra.com/partners/hosting_partners.html.

Additionally, the ZCS 3.0 free Open Source Edition and commercially-supported Network Edition are both available for download at http://www.zimbra.com/. Users can discuss topics related to the ZCS and Zimbra as a hosted service at http://www.zimbra.com/forums/.

About Zimbra:

Zimbra dramatically improves the messaging and collaboration experience for administrators and users. Zimbra's goal is to achieve this by investing in innovation, open source, and compatibility with existing applications and systems. The Zimbra Collaboration Suite supports Windows, Apple, and Linux platforms and works with Microsoft Outlook as well as other PC and mobile clients. Additionally, Zimbra provides an AJAX browser based client that delivers rich, secure, anytime access for anyone within the enterprise. More information and software downloads are available at www.zimbra.com.