Angstrom Microsystems Corporation (OTCBB: AGMS)

Financial Snapshot

Breaking *News* From AGMS

BOSTON, MA--(MARKET WIRE) – Aug. 27, 2008 -- Angstrom Microsystems Corp. (OTCBB: AGMS.OB) is leading the market in “Green Computing” solutions. Angstrom is focused on providing “Green Computing” solutions to help clients reduce their carbon footprint while saving energy and saving them money over traditional computing solutions.

According to Gartner, Inc., “Worldwide server shipments for the second quarter of 2008 increased 12.2 percent over the same quarter last year, while worldwide server revenue for the same period climbed 5.7 percent. Worldwide server revenue totaled $13.8 billion for the second quarter, as worldwide servers shipments reached 2.3 million units.

"In spite of economic constraints in some markets like the United States, on a worldwide basis, servers continued to grow in the second quarter of the year,” said Jeffrey Hewitt, research vice president at Gartner. “The most significant driver in the quarter continued to be an upswing in x86 server replacements that started in the first quarter. This, coupled with Web data center build outs and growth in emerging markets, produced solid Q2 results.”

Says Lalit Jain, CEO of Angstrom Microsystems, "We have some solid company in the blade server market competing against the likes of HP, Dell and IBM. We are, however, differentiating ourselves from our competition through our use of energy saving technologies, energy efficient Quad-Core AMD Opteron processor-based blade servers, and our unique software acceleration libraries.” Mr. Jain adds, “At the end of the day Angstrom can do it better, faster and cheaper than our large competitors in the market. Just 1% of the global market would represent 23,000 units per quarter. I think we are competitively positioned with our software and hardware technologies to go after a decent sized piece of the blade server market. While the overall economy is struggling, the server market is growing and we like our chances in gaining market share against our major market competitors.”

About Angstrom Microsystems Corp. (www.angstrom.com)

Angstrom is one of the top Green computing companies, providing technology solutions ranging from liquid-cooled blades to acceleration software in order to help reduce the power requirements of datacenters. Its customers include Rhythm & Hues, Fox Films, Tippett Studios and the National Institutes of Health. Angstrom has earned a reputation for quality, service, and engineering innovation in the AMD Opteron and energy efficient Quad-Core AMD Opteron processor-based system markets. See Angstrom Microsystems in the end credits of Blue Sky Studios "Ice Age: The Meltdown."

AMD, the AMD Arrow Logo, AMD Opteron, and combinations thereof are trademarks of Advanced Micro Devices, Inc. 
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Company Overview

Angstrom Microsystems Corp. (AGMS) designs and manufactures ultra-dense, high performance rack-mount servers through its wholly owned subsidiary, Angstrom Microsystems, Inc.(TM), which the company acquired in April 2008. AGMS was in the development stage as of Dec. 31, 2007. Angstrom Microsystems(TM) specializes in Green computing solutions, providing blade servers, workstations and software uniquely designed for the energy-hungry datacenter sector. Angstrom Microsystems provides software-based acceleration to significantly reduce the number of machines required to perform a given task. It combines this technology with cooling techniques to further reduce energy consumption in the datacenter. Fewer machines for the same performance coupled with less cooling power required per machine results in a more energy-efficient datacenter.

The company's technology solutions include non-conductive environmentally friendly liquid cool blades, ultra-efficient rack-based power solutions and 10-50x FFT and other application acceleration software, and are designed to help reduce the power requirements of datacenters. Customers include Rhythm & Hues, Fox Films, Tippett Studios and the National Institutes of Health. Angstrom Microsystems provides blades and other products for the AMD Opteron(TM) processor market.

The Angstrom LiquiBlades (TM) extend the use of existing datacenters as computing needs grow.
Angstrom LiquiBlades (TM) bypass the traditional method of air cooling servers by using a non-conductive liquid that absorbs computer heat and pipes it as a non-conductive gas to a heat exchanger outside of the datacenter.

Angstrom MaxPowerSmart (TM) is an ultra-high efficiency 480VAC 3-phase and 48VDC solution that provides power to standard motherboards used by the Angstrom blade and rack-mount products. Angstrom racks can accept 48VDC power and redundant A/C power from separate grids.

According to the company, its accelerated computing software, Angstrom XFactor Plus(TM), can improve server performance by 5-200x. Through the use of Angstrom acceleration middleware libraries, select applications such as FFTW(TM), Atlas Blas(TM), and a variety of other math libraries and applications can be calculated using significantly fewer servers.

As the company pursues a product strategy for its liquid cooling hardware, it will display technology through direct sales in order to license technology to original equipment manufacturers (OEMs). For its power efficiency hardware, Angstrom Microsystems will incorporate off-the-shelf technology into an Angstrom solution. The company's strategy for its software is to address vertical markets through targeted development and marketing.

Key elements of the company's business development strategy include sales growth, licensing to OEMs, acquisitions, partnerships with vertical market ASPs, and splitting off vertical market products as separate departments.

The company believes that its Angstrom LiquiBlades offer a number of advantages. They can reduce monthly electricity costs by up to 25%, and they enable expansion in challenging locations such as datacenter hot spots, high elevations or open air facilities. In addition, Angstrom LiquiBlades reduce noise signigicantly, allowing the rack to quietly reside alongside staff in an office space. 

Company Solutions

Rendering Super cooling: Improper cooling of servers is the number one cause of component failures. Appropriate cooling technology helps Angstrom servers run error-free, speeding the process of rendering screens. Performance: Dual processor AMD solutions provide 50% better performance for rendering application than comparable Intel-based platforms. Angstrom is committed to maximizing performance per server, thus minimizing the number of servers per rendering project. Support: Angstrom engineers can also help deploy and maintain render farms. Our expertise in film and computer animation allows Angstrom to provide industry specific custom solutions. Our engineers can assist in choosing the right software and drivers to make sure you have the highest performance for your configuration.

Reliability of components: Exceptional ingredients are essential in preparing gourmet cooking. In the same fashion, Angstrom's commitment to quality components makes possible highly stable systems. Angstrom sets a very "high bar" of quality standards. We start with stringent screening criteria to select vendors and partners. After careful assembly, we subject our servers to rigorous testing for days before deployment in the field.

Design for excellence: Selecting quality components is the first step in creating a solution that performs to its maximum potential. Our attention to design and engineering details translates to a consistent quality of products.

Biotechnology

A host of new technologies are fundamentally changing basic and discovery research. Rapid advances in biotechnology have changed the nature of drug discovery and development. High speed data access and storage demands of the emerging biotechnology industries require high performance computing data be integrated with storage systems to provide advanced scalable solutions. A host of server solutions enable drug discovery companies and biotechnical researchers to leverage the value of and provide new avenues of analyzing data. High performance, high - speed computing power and industrial strength databases perform a wide range of data-intensive computing functions: mapping genetic and proteomic information to data mining to identify patterns and similarities.

Angstrom high performance computing servers for scientific and technical computing include Linux servers, AMD Opteron processor based servers and storage technologies focus on the architecture requirements for Life Sciences. A key component of a top-quality life sciences solution is reliable, fault-tolerant storage. With scalable Angstrom Dataminer storage systems, laboratories can, without interruption, increase storage capacity and reduce back-up time and delays. Angstrom solutions provide cross-platform accessibility and flexibility for a range of research and development computing applications.

Scientific Computing 

Low cost super computing breakthroughs are allowing national labs, universities and research facilities to delve deeper into the mysteries of the world. Angstrom's vision for scientific computing is to provide the maximum computation in a cost effective and compact solution. With expertise ranging from MPI to cache coherency to LinuxBIOS, and provides solutions to suit the needs the of the most demanding compute farms.

Angstrom provides clustering solutions to perform numerous tasks in scientific computing including:

    * Scientific Computing
    * Particle physics analysis
    * Weather analysis
    * Geo-physical research
    * Mathematical modeling
    * Visual and audio rendering

Angstrom provides the following benefits to scientific computing installations:

    * Maximum performance using 64-bit AMD Opteron™ technology
    * Management software for large scale deployments
    * Expertise in physics, mathematics and chemical engineering

Wall Street

More than ever before, today's financial institutions must evolve their legacy systems and differentiate themselves to stay competitive in the changing marketplace. Institutions in every segment recognize the competitive advantage delivered by the effective use of information technology.

Angstrom Microsystems, a leading solutions provider of Linux-based, open systems, brings low-risk, high-return Information technology solutions to meet the demands of critical business systems. Through the use of networked computing technologies, Angstrom improves reliability and performance while reducing costs necessary for trading and technical analysis.

Oil and Gas

Oil & Gas The on-going search for hydrocarbon fuel is spurring advances in high technologies like high performance computing and 3-D visualization of seismic events. Angstrom solutions help geoscientists and petroleum engineers with solutions and technology that can reduce the uncertainties inherent in the hunt for petroleum and maximize potential returns.

Streaming and CDN

Industrial strength: Angstrom servers are designed to stay cool and run smoothly under extreme environmental conditions including non-air-conditioned datacenters and facilities with sporadic power fluctuations. With existing deployments in countries with these environmental conditions, Angstrom servers are designed to be shipped world-wide.

Quality of servers: Return of defective products can be a long and arduous process that can affect a company's reputation as well as its bottom line. Customs issues and lack of expertise at these remote facilities require that deployments are flawless. Angstrom's proven track record of highly reliable systems make it a market leader in distributed CDN and Streaming media deployments world-wide.

High Performance: Angstrom solutions are high performance in what counts to streaming media -- I/O. Angstrom provides GigE solutions that take advantage of 64bit/66MHz PCI bus technology. In addition, Angstrom provides dual-processor solutions that stay cool and can help distribute processes to enable maximum performance.

Technical expertise: Angstrom engineers can help develop kernel and software so that you're sure that your network and computers are all working at peak efficiency.

Angstrom Microsystems Corporation (OTCBB: AGMS)

Angstrom Investor Highlights:

• Angstrom in business for almost 9 years 
• Company started by Lalit Jain, MIT alumni 
• Lalit Jain has delivered sales of $50MM in almost 9 years 
• High profile client base includes Fox Films (Angstrom in the end credits of Ice Age the Meltdown), the National Institutes of Health (see our servers in the picture at biowulf.nih.gov), and Industrial Light and Magic. 
• Developed "Green" solutions that reduce power needs in the data center.

Green Products:

Liquid Cooling : AMS LiquiCool(TM)
 
• Uses non-electrically conductive fluid (AMS Treon(TM)) which, by this feature, is data center safe unlike most other tier 1 competitors like IBM and HP that use highly conductive water.
• Is more energy efficient than almost all solutions that compete because our technology is "2-phase" cooling -- several orders of magnitude more efficient than air cooling or walter cooling.
• Has no points of failure (POF) between the computer blades and the rack, unlike any other true liquid cooled solution
• Unlike any other solution, is highly scalable and thus designed for large scale deployments (no water usage, elimination of rack/blade POF and advanced monitoring).
• Uses fluid that is non-toxic, non-flammable and environmentally friendly unlike others who may use CFC solutions.
• Easy to maintain and cost effective

Cooling accounts of 30% of monthly costs in the data center. Angstrom's technology eliminates over 75% of that 30% using its liquid cooling and resulting in excellent ROI for AGMS clients.

As important, Angstrom LiquiCool solutions enable the continued use of existing data centers, thus showing customers *immediate* CAPEX savings by not needed to build multi-million dollar data centers.

Power Efficiency: MaxPowerSmart(TM)

• Racks to plug directly to "street" power, by-passing costly and inherently inefficient data center PDUs, enabling 82% power efficiency to the rack, as compared to the 50%-70% offered in most other standard solutions.
• Racks can have redundant power grid inputs, providing enterprise class power reliability.
• Racks offer N+M power to the blades for enterprise class power reliability.
• Rack can accept 48V DC solution for ultra-efficient and telco data centers.

Software acceleration: Xfactor Plus(TM)

• Accelerates the performance of targeted software application and libraries by 10-100x, reducing the total # of machines needed to run in the data center for any given calculation.
• Does not require any significant change to existing software code based, allowing for critical plug-and-play capability. Not having this feature is a "show-stopper" for most clients since they do not want to (a) expend budget to develop "custom" code (b) maintain multiple code bases (c) be beholden to one company if they do decide to convert their code.
• Uses standard Intel and AMD based hardware, while the accelerated software is driven using GPU technology.

This technology is a quantum leap in the way computing will get done in select high performance computing industries -- from Wall Street, to oil and gas to broadcasting -- this technology will all but eliminate the focus on the use of faster and faster Intel or AMD processors. Already, industries are gearing up for his new wave of technology.

Company Contacts

Angstrom Microsystems Corporation
27 Drydock Ave.
Boston, MA 02210
Phone: (617) 695-0137
Fax: (617) 695-0984
http://www.angstrom.com/
support@angstrom.com

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