VirtualLogix Announces New Financing

Adds New Venture Investor, Along with Existing Venture Investors, Enabling the Company to Accelerate Growth and Market Presence

SUNNYVALE, CA – January 13, 2010 – VirtualLogix™, Inc., a leader in virtualization technology, today announced that it has secured a new round of financing which will be used primarily to accelerate the company’s growth in the mobile virtualization segment. The financing included a new investor, Progression Partners, as well as the existing venture capital investors Atlas Venture, Index Ventures and DFJ Esprit; and strategic investors Intel Capital, Motorola Ventures, the strategic venture capital arm of Motorola, Inc., and Texas Instruments.

“We believe this new round of financing validates our strategic focus on building market leadership for VLX virtualization technology in ARM-based mobile phone handsets and Intel-based mobile devices,” said Glenda Dorchak, Vice Chairman and CEO at VirtualLogix. “With the market momentum of exciting new mobile products and the increased use of virtualization technology to run multiple software elements, VirtualLogix is well positioned for significant growth. Our VLX solution is helping silicon vendors and OEMs speed time to market by enabling single-core devices that act like smartphones without impacting performance, and by improving software re-use to lower R&D costs.”

Financial terms of the investment were not disclosed.

About VirtualLogix

VirtualLogix™, Inc. is the global leader in Real-Time Virtualization™ software technology for mobile products including wireless handsets. VirtualLogix’s flagship product, VLX™, enables multiple operating system environments to run concurrently on shared hardware for both Intel and ARM-based solutions. VLX delivers isolation technology and virtualization that improves power management, performance, application independence, fault tolerance and security options, which can be tailored to address specific market requirements. This enables developers to reduce R&D costs, accelerate adoption of the latest silicon solutions, improve time to market and deliver improved mobile device security. VirtualLogix is accelerating the availability and innovation in the next generation of wireless devices. For more information, go to www.virtuallogix.com or www.vlx.com.

VirtualLogix Inc. is headquartered in Sunnyvale, California with operations in France, Japan, China, and Korea.

About Atlas Venture

Atlas Venture is a leading international early-stage venture capital firm, investing in communications, information technology and life sciences companies in the U.S. and Europe. The company has investing offices in Boston, London, Munich, and Paris.

Founded in 1980, Atlas Venture has organized seven international funds and currently manages more than $2 billion in committed capital. The Atlas Venture investment team is comprised of seasoned operating executives and career venture capitalists that have been deeply involved in the formation and development of more than 300 companies worldwide.

About DFJ Esprit

DFJ Esprit is a top-tier, venture capital firm. DFJ Esprit invests in technology and healthcare businesses with exceptional management teams and growth prospects. The DFJ Esprit team has been behind many of Europe’s most successful venture exits of recent years with recent successes including KVS, Alphamosaic, Fillfactory, DRI, Blackspider, and NetEconomy. Its partners have a combined total of more than 100 years of venture capital investment experience and a first-class track record of successful exits.

With offices in London and Cambridge, and access to the DFJ Global Network of venture capital partnerships—including over 130 investment professionals in 32 cities worldwide, DFJ Esprit is uniquely positioned to help build globally

successful companies.

About Index Ventures

Index Ventures is a leading venture capital firm active in technology venture investing since 1996. The firm is dedicated to helping top entrepreneurial teams in the Technology, Life Science and Clean Tech sectors build their companies into market defining global leaders. The firm has offices in Geneva, London and Jersey and focuses on investments from seed through growth stage companies. Current portfolio investments include Boku, Optier, Oanda, Rightscale and Telegent and recent exits of note include Playfish (Electronic Arts), MySQL (Sun) and Skype (eBay).

About Intel Capital

Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. It invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, and semiconductor manufacturing.

Since 1991, Intel Capital has invested more than $7.5 billion in 1,000 companies in more than 45 countries. In that time, about 212 portfolio companies have been acquired by other companies and another 168 have gone public on various exchanges around the world. In 2008, Intel Capital invested about $1.59 billion in about 169 deals with approximately 62% of funds invested outside the United States.

About Motorola

Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to high-definition video and mobile devices, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $30.1 billion in 2008. For more information, please visit www.motorola.com.

About Progression Partners

Progression Partners builds world-class, game-changing companies. The partnership takes a high-value-added, analytical and exclusive approach to building value. The Progression team is made up by a hands-on team of individuals with management, investment, marketing and product experience, gained from having held senior leadership and board positions in companies, ranging from very large public companies to small, embryonic start-ups.

About Texas Instruments

Texas Instruments (TI) provides innovative DSP and analog technologies to help its customers deliver consumer and industrial electronics products with greater performance, increased power efficiency, higher precision, more mobility, and better quality. TI, which was founded in 1930, first entered the semiconductor market with its 1954 introduction of the first commercial silicon transistor.

TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 30 countries. It was recognized as one of Fortune magazine’s “Most Admired Companies” in 2009 for the sixth consecutive year.

Media Contacts:

Emory Epperson

(408) 636-2804

emory.epperson@virtuallogix.com

Candace Locklear

Spark PR

(415) 321-1876

Candace@sparkpr.com

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VirtualLogix, the VirtualLogix Logo, VLX, and Real-Time Virtualization are trademarks of VirtualLogix Corporation.

All other names mentioned are trademarks, registered trademarks or service marks of their respective owners.