FalconStor and SM Data Team to Offer IPStor-Powered Appliances in Spain
 

StoreData Virtual Tape Library and Virtualization Appliances to Accelerate Backup, Optimize Business Continuity and Consolidate Storage

Barcelona, January 21, 2004 -FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage infrastructure software solutions, today announced a collaboration with SM Data, a distributor of storage solutions based in Barcelona with office in Madrid, to deliver virtual tape library and virtualization appliances powered by IPStor.   

The appliances leverage industry standard disk, IP and Fibre Channel over a storage area network.  SM Data’s StoreData Virtual Tape Library Appliance accelerates the backup and restoration of data with minimal operating cost and a rapid return on investment, while the StoreData Virtualization Appliances family gives customers the flexibility to integrate Fibre Channel and Ethernet-based storage environments through the aggregation, allocation and provisioning of storage resources.  

“We are excited by the expanding relationship with FalconStor, and are leveraging their technology to allow our customers to either build upon or easily plug and play our IPStor-powered appliances into their existing IT infrastructure,” said Jordi Sabiol, general manager of SM Data.  “The broad capabilities offered by FalconStor's IPStor allow us to target the enterprise, midrange and departmental/remote offices market.”

SM Data’s StoreData Virtualization Appliance incorporates IPStor software and jointly the famous family StoreData RAID offers storage consolidation and virtualization, and all storage is provisioned and managed centrally via the IPStor Java console. The storage array StoreData RAID can be SCSI or Fibre Channel-connected and can use SATA, ATA, SCSI or Fibre Channel hard drives. 

The StoreData Virtual Tape Library Appliance enhances the speed and reliability of existing third party backup applications by using disks to emulate industry standard tape libraries, and by transfering data to and restoring it from disk-based virtual tape at ultra high speeds.  The appliance also maximizes reliability by removing robotic mechanical failures and physical tape media errors. 

“SM Data’s storage appliances are the perfect vehicle to expand IPStor’s reach in Spain,” said Guillaume Imberti, FalconStor president and general manager for EMEA (Europe, Middle East, Africa) operations.  “The storage appliances address different segments of the marketplace, and provide cost effective solutions and storage services to businesses that need to streamline storage management and maximize their resources.” 

IPStor software delivers an intelligent SAN/NAS infrastructure across heterogeneous environments by providing a comprehensive set of storage services for enterprise applications – simplifying management, ensuring data availability and recoverability, and maximizing performance.

About SM Data S.A.
SM Data is a Spanish value added distributor with more than 14 years in the market, specializing in high end and high performance storage networking solutions in heterogeneous environments. SM Data offers all the necessary hardware and software components to deploy a Global Storage Solution (SAN Projects).  SM DATA is an active member of SNIA Europe and represents in Spain numerous manufacturers of advanced technology products of high quality, worldwide leaders. Some of the most significant: ADIC, Alacritech, ATTO, Chaparral Networks, Computer Associates, Digi, Exabyte, FalconStor, Gadzoox Networks, Iomega, JMR, LSI Logic, QLogic, Sanbolic, Seagate Technology, StorCase Technology, Tandberg Data, Veritas, etc. SM DATA also is manufacturer of modular RAID Systems marketed with its own brands StoreData and MacData.   

About FalconStor
FalconStor Software, Inc. (NASDAQ: FALC) is a leading developer of network storage infrastructure software solutions designed to optimize the performance and availability of today's complex IT infrastructures.  Deployed by a wide range of Fortune 1000 enterprises, FalconStor's flagship product, IPStor, optimizes storage utilization, accelerates backup and recovery, maximizes I/O performance and ensures business continuity via sophisticated data replication services. It is available and supported through major OEMs, system integrators and resellers worldwide.
Founded in 2000, FalconStor is headquartered in Melville, NY, with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Technical Support Alliance Network (TSANet), Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information visit www.falconstor.com or call 1-631-777-5188.

This press release includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include: the early stage of FalconStor’s business; delays in product development; market acceptance of FalconStor’s products and services; technological change in the storage and networking industries; competition in the storage networking software market; the ability to achieve profitability; intellectual property issues; and other risk factors discussed in FalconStor’s reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission.

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FalconStor and IPStor are registered trademarks of FalconStor Software, Inc.  All other company and product names contained herein are trademarks of the respective holders.