I am extremely excited to announce that on July 12, 2007, X-Hive Corporation was acquired by EMC Corporation, the world leader in information infrastructure solutions. X-Hive Corporation will immediately take a prominent position in EMC's powerful software portfolio, enabling organizations of all sizes to transform the way they compete and create value from their information.

When we first established X-Hive Corporation in 1996, our goal was to bring fresh thinking to the world of XML-based data management. Over the past decade, we've built a solid reputation for improving the operational performance of some of the premier names in the industry. As the market shift to XML-based solutions continues, X-Hive is leading the way by providing the solutions that help companies effectively address their data management challenges.

This union makes perfect strategic sense for both X-Hive Corporation and EMC. For X-Hive, the acquisition will immediately expand our business and technical resources to enable us to achieve our founding vision. For EMC, this acquisition is a strategic commitment to the next-generation of information management and XML.

As a valued customer who has made significant investment in X-Hive technology, I wanted to let you know that EMC is dedicated to investing in and growing X-Hive's product capabilities and scope. You can expect continuity and investment protection, as well as smooth upgrade paths to greater functionality. Additionally, as the acquisition will dramatically expand X-Hive's financial and technical resources, you will immediately benefit from a breadth of technology innovation and world-class customer support unsurpassed in the marketplace.

As the acquisition is now complete, X-Hive Corporation will be fully integrated into the EMC Content Management and Archiving (CMA) business unit, and the X-Hive salesforce will be integrated with the EMC CMA sales team. Based on EMC's excellent track record of integrating software companies, we expect an extremely smooth transition.

I would like to extend my personal thanks to all of our customers for your ongoing support. Your X-Hive account manager will be contacting you shortly to provide additional information regarding the acquisition and to discuss any changes to the way you will engage with EMC going forward. We look forward to strengthening our relationship with you as part of the EMC family.

Thank you for your continued support.

Sincerely,

Jeroen van Rotterdam, CEO