Egnyte Becomes Etelos Syndication Partner

Renton, Wash. -- October 22, 2009 -- Etelos, Inc. (OTCBB: ETLO), a developer and operator of private labeled Marketplaces for Web-based business applications, announced that Egnyte, a leading provider of on-demand file server solutions, has become an Etelos Syndication Partner.

Egnyte's products will be distributed via multiple Software as a Service (SaaS) marketplaces that are based on the Etelos Platform Suite™. Egnyte's On Demand File Server is designed for professionals and businesses to store company files, securely share files and collaborate with teams and backup personal computers. The On Demand File Server requires no hardware, no IT maintenance costs and provides unlimited storage.

To purchase, customers simply select Egnyte's On Demand File Server from a marketplace and can begin using it within minutes.

"Egnyte solves the business problem of not dealing with managing your own infrastructure for file storage and backup" said Danny Kolke, Etelos Founder & CEO. "One of the great advantages for Egnyte in using the Etelos Platform Suite is to add additional distribution channels to white labeled marketplaces without additional R&D expenses."

With Egnyte's On Demand File Server, businesses can store all their data, collaborate within and outside the company, and also backup employee computers. With its optional Local Cloud technology, Egnyte addresses issues of a complete cloud based solution, including latency issues with large files and group off-line access.

Using a SaaS Model, businesses can provision their On Demand File Server in a matter of a few minutes and start storing their data in Egnyte. For businesses needing to move a large amount of data, say 250GB on their On Demand File Server, Egnyte also provides a one-time data migration service.

Etelos is a developer and operator of private labeled Marketplaces for Web-based business applications. The Etelos Platform Suite is the foundation for moving apps from a proprietary model to SaaS and it enables syndication partners to offer their applications through multiple private labeled SaaS marketplaces. Egnyte, as part of the Etelos Syndication Partner program, will be made available to a variety of businesses in the manufacturing, service and financial industries.

Egnyte is now available on the marketplaces that have been built on the Etelos Platform Suite. For more information or to browse those marketplaces, please visit Etelos.com.

About Etelos, Inc.
Etelos is the developer of a Web app distribution platform for delivering Web apps for businesses. Unlike other cloud computing and Platform-as-a-Service (PaaS) solutions, Etelos enables software manufacturers to migrate existing applications or to create new applications, then to package, distribute, host, bill, market and support their Software-as-a-Service (SaaS) enabled applications through a number of third-party branded application marketplaces, all based on the Etelos Platform Suite. Etelos™, the Etelos Platform Suite™, EASE™, Etelos App Server™, Etelos VE™, Etelos Cloud™ and Etelos Marketplace™ are trademarks of Etelos, Inc.; other trademarks are the property of their respective owners. For more information about Etelos, please visit Etelos.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Etelos' business which are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements include, among other things, statements concerning the company's partnership with others, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our product and platform roll-out and other statements qualified by words such as "anticipate," "believe," "intend," "may" and other words of similar import. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including: Our partnerships with this Syndication Partner or others, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our products and platform roll-out. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports that Etelos files periodically with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Etelos undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

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