SM Data and FalconStor sign strategic Distribution Agreement to bring Storage Over IP availability to the Spanish market

Paris, Barcelona, 4^th September 2001 – SM Data the Spanish distributor specialized in storage solutions and US-based FalconStor, Inc., a network storage infrastructure software company, announced today a joint strategic distribution agreement to provide resellers with the ability to integrate FalconStor’s IPStor Software solutions in their product offerings.

Founded in 1989, SM DATA is a value added distributor specialised in high end and high performance storage networking solutions in heterogeneous environments, offering all the necessary hardware and software components to develop a SAN (Storage Area Network). SM DATA is an active member of SNIA Europe and represents in Spain numerous manufacturers of advanced technology products of high quality, world-wide leaders.

"With IPStor, FalconStor is redefining storage networking," says SM Data Managing Director Jordi Sabiol. "Typically, solution providers have focused on either the hardware-based IP connectivity solutions or the software-based storage services solutions. IPStor has created a new ‘space’ that offers both, and as a software-only solution that is hardware independent. This allows companies to leverage existing IT infrastructures and benefit from added functionalities such as mirroring, replication, snapshot, and zero-impact backup and restore."

According to FalconStor General manager EMEA Operations, Gerry Briggs, "this agreement allows us to make a major entry into the Spanish market by partnering with a leading expert for storage systems. SM Data will be trained and certified in all facets of the IPStor software technology. While it represents a win-win relationship for both companies, it means even more to an industry that has an ever-growing demand for both storage management and storage networking services. We see this agreement as a means for the channel to embrace solutions that will add value and complement our growth in Europe and Spain"

About FalconStor
FalconStor Software, Inc., is a storage networking infrastructure software company. Its flag ship product IPStor software uses Ethernet/IP/iSCSI/Fibre Channel to unify Storage Area Networks (SAN) and Network Attached Storage (NAS), delivering both block and file level sharing to application servers and workgroup users under a common management umbrella. Founded in 2000, the company is privately held with corporate headquarters based in Melville, NY. International offices include Paris, France; Taichung, Taiwan; and, Tokyo, Japan. For more information, visit www.falconstor.com.

About SM Data
SM DATA is a Spanish value added distributor with more than 10 years in the market, specialized in high end and high performance storage networking solutions in heterogeneous environments. SM DATA offers all the necessary hardware and software components to develop a Global Storage Solution (SAN Projects). It represents in Spain numerous manufacturers of advanced technology products of high quality, worldwide leaders. Some of the most significant: Adaptec, ATTO, Chaparral Networks, CMD Technology, Computer Associates, Digi, Exabyte, Gadzoox, Networks, Maxoptix, Mylex, QLogic, Seagate Technology, Veritas, etc., and now FalconStor. SM DATA also is manufacturer of modular RAID Systems marketed with its own brands StoreData and MacData.