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Lantronix' Spider Producing for Host Company - (NASDAQ: LTRX)

|Includes:Lantronix, Inc. (LTRX)
Lantronix, Inc. (NASDAQ: LTRX), global provider of secure, network-enabling technologies, today announced that XLHost, data center and server hosting company, has implemented Spider to improve remote management of PCs and servers. Lantronix' Spider allows XLHost's customers to directly access the server console to troubleshoot problems without depending on XLHost's technical support team, saving time and money.

XLHost identified Lantronix' Spider as an ideal fit for remotely managing its geographically distributed IT equipment. In addition to its features and functionality, a key purchase criterion was the product's compact form factor and minimum cable support, which helps de-clutter server racks and connects directly to a single server. Now, XLHost's customers can securely perform routine maintenance and directly access the server console to quickly resolve problems. In addition, XLHost has increased its revenue by nearly $9,000 per month with the service charge for each Spider.

Spider provides secure KVM (keyboard, video, mouse) server management over an IP network. Connected directly to the server, Spider guarantees non-blocked access from any web browser, anywhere, at any time. More cost-effective than traditional KVM, it provides one of the lowest "cost-per-remote-user" server management solutions available. And no client software or external power supply is required. Amazingly scalable, Spiders can be easily daisy-chained together using Lantronix SwitchPort+(NYSE:TM) integrated Ethernet switch technology. This provides an economical and highly flexible solution in environments where numerous cable drops and distance limitations can be a challenge when adding servers.

"Whether they're in Kentucky or Kabul, our customers can now perform tasks on their servers as if they were right in our datacenter," said Drew Weaver, head system and network engineer for XLHost. “With each new software update, Spider just gets better and better."

This is a nice start for Lantronix Inc. as there are thousands of host companies that could potentially use Spider. The deal with XLHost is by no means a million dollar sale; however, the aftermath of this deal, encouraging future host companies to use Spider, could have the same effect.

Lantronix has also had a hard time getting real volume. The stock is slightly down trading at $4.52 on volume of 2.5k

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Disclosure: no positions
Stocks: LTRX