Welcome to the Isilon Systems, Inc. Class Action Settlement Website.

The following is a summary of information presented in more detail in the Notice of Proposed Settlement of Class Action, Motion for Attorneys’ Fees and Reimbursement of Expenses and Settlement Fairness Hearing (the “Notice”), which Class Members should have received in the mail, and which you can access by clicking the box to the left. Since this is just a summary, you should read the full Notice for additional details. Please read it carefully, and contact us if you have any questions.

Nominees: Please see instructions on page 14 of the Notice.

WHO IS INVOLVED?
This is a class action brought under the federal securities laws for all persons or entities who purchased or otherwise acquired Isilon common stock between December 14, 2006 and November 8, 2007 inclusive, and all persons or entities who acquired shares of Isilon common stock pursuant and/or traceable to Isilon’s December 2006 initial public offering. All these persons and entities are the “Class Members.” Excluded from the Class are the Defendants and related persons and entities as set forth in the Notice which you can access by clicking the box to the left.

THE COURT’S FAIRNESS HEARING
The Court will hold a hearing at 9:00 a.m. on March 5, 2010, at the United States District Courthouse, Courtroom 14206, 700 Stewart Street, Seattle, Washington 98101. At this hearing the Court will consider whether the Settlement and the Plan of Allocation are fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will listen to people who have requested in writing by February 19, 2010 to speak at the hearing. The Court may also consider Lead Counsel’s application for attorneys’ fees and reimbursement of expenses.

WHAT IS THIS LAWSUIT ABOUT?
Isilon is a provider of clustered storage systems for digital content. The Company states that it has designed and developed its clustered storage systems specifically to address the needs of storing and managing digital content. The Consolidated Class Action Complaint (the “Complaint”) alleges that prior to and throughout the Class Period, Defendants engaged in a scheme to artificially inflate Isilon’s revenue and, in turn, Isilon’s financial statements. The Complaint alleges that this scheme enticed investors to purchase Isilon securities, artificially driving up the price of Isilon’s shares. The Complaint further alleges that in the fourth quarter of 2007, Defendants revealed that they could no longer meet the market’s expectations and would be forced to launch an internal investigation into the Company’s revenue recognition practices. This investigation led to the April 2, 2008 Restatement of Isilon’s historic financial statements. The Complaint alleges that as the truth of Defendants’ scheme leaked out publicly and the risks associated with this scheme materialized, the artificial inflation of Isilon’s share price was removed, damaging the Class Members, the investors who had purchased Isilon shares while the price was allegedly artificially inflated.

The Complaint alleges that Defendants’ misstatements during the Class Period regarding Isilon’s revenue recognition were false when made and thus violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11 and 15 of the Securities Act of 1933.

THE SETTLEMENT BENEFITS
Isilon and the insurance carriers for Isilon’s directors and officers have agreed to pay $15 million cash into the Settlement Fund. The balance of this fund, after payment of Court-approved attorneys’ fees and expenses, taxes, and the costs of claims administration, including the costs of printing and mailing the Notice and the cost of publishing newspaper notice (the “Net Settlement Fund”), will be divided among all Class Members who submit valid Claim Forms.

THE OPTIONS AVAILABLE TO CLASS MEMBERS UNDER THIS SETTLEMENT
If you are a Class Member, you have the following options:

• FILE A PROOF OF CLAIM FORM
  To qualify for payment, you must be an eligible Class Member and you must submit a Claim Form. This form was enclosed with the mailed Notice, or you can print it by clicking on the link to the left. Read the instructions carefully, fill out the form, provide all the documents the form requests, sign it, and mail it in an envelope postmarked not later than May 1, 2010. Retain a copy of everything you mail in case the materials are lost or destroyed during shipping. Do not send originals of your brokerage or other statements.

• EXCLUDE YOURSELF FROM THE CLASS
  To exclude yourself from the Settlement, you must send a letter by mail stating that you want to be excluded from Dr. Magdy Fouad, individually and on behalf of all others similarly situated v. Isilon Systems, Inc., et al., Case No. 07-1764 MJP. You must include your name, address, telephone number, your signature, and the number of shares of Isilon common stock you purchased between December 14, 2006 and November 8, 2007, inclusive, the number sold during this time period, if any, and the dates of such purchases, acquisitions, and sales. Your Request for Exclusion must be sent to:

  Isilon Securities Litigation
  c/o Rust Consulting, Inc.
  P.O. Box 24622
  West Palm Beach, FL 33416

  Please keep a copy of everything you send by mail, in case it is lost or destroyed during shipping.
  
  Your Request for Exclusion must be received no later than February 19, 2010. You cannot exclude yourself over the phone or by e-mail. If you ask to be excluded, you are not eligible to receive any Settlement payment, and you cannot object to the Settlement. You will not be legally bound by anything that happens in this lawsuit and you will be able to pursue – in your own lawsuit and at your own expense -- the claims that are being released in this Settlement.

• OBJECT TO THE SETTLEMENT
  If you are a Class Member, you can object to the Settlement if you do not like any part of it. To object, you must send a letter saying that you object to the Settlement in Dr. Magdy Fouad, individually and on behalf of all others similarly situated v. Isilon Systems, Inc., et al., Case No.: 07-1764 MJP. Be sure to include your name, address, telephone number, your signature, the number of shares of Isilon common stock you purchased and sold between December 14, 2006 and November 8, 2007 inclusive, and the reasons you object to the Settlement. Your objection to the Settlement must received by each of the following no later than February 19, 2010:

Court:
Clerk of the Court
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
700 Stewart Street
Seattle, WA 98101

FURTHER INFORMATION
You can get further information on this Litigation, the Notice and how to file your claim by reading the Notice and Proof of Claim, at the links above, or by contacting the Claims Administrator (see link above). You may also contact Plaintiffs’ Lead Counsel at the address listed above.

IMPORTANT: THIS SITE IS NOT OPERATED BY ISILON SYSTEMS, INC. THIS SETTLEMENT IS SUPERVISED BY CLASS COUNSEL. THE CLAIMS ADMINISTRATOR HANDLES ALL ASPECTS OF CLAIM PROCESSING. THIS IS THE AUTHORIZED WEBSITE FOR THIS SETTTLEMENT. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.