Service Disruption on November 12, 2007

At 5:40pm Pacific Standard Time, Smartsheet.com was forced to go offline due to a widespread power issue that that impacted our SAS70 certified data center, managed by Rackspace in Dallas, Texas. We are thankful that no customer data was impacted by this event and we apologize for the business disruption this may have caused you.

Without listing the numerous exchanges we had with Rackspace support, we can assure you of three things:

• the events leading to the temporary power failure were exceptionally rare - especially in the sequence in which they occurred
• Rackspace, a world class managed service provider known for their zero-downtime network, followed their stated procedures to ensure that all customer data and our servers were safely powered down and restored following the event
• we will explore supplemental hosting options and procedures to ensure that the availability of Smartsheet.com remains world class.

Thank you for your patience and we look forward to continuing to provide the highest levels of availability to you going forward.

Mark Mader

CEO, Smartsheet.com