A&I System Teams With FalconStor and NS Solutions Corporation To Provide Comprehensive Disaster Recovery Services With High ROI and Effective TCO

Business Wire, March 25, 2003

Business Editors

TOKYO--(BUSINESS WIRE)--March 25, 2003

IPStor's Advanced Replication Services Power Cost Effective

Disaster Recovery Service Package

FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage infrastructure software, today announced that A&I System Co., Ltd., an IT total solutions and hosting services provider, is initiating a robust, cost-effective disaster recovery service powered by IPStor's advanced replication abilities at its Internet Data Center (IDC), to meet their customer's need for business continuity and data recovery.

"A&I System has already been working with FalconStor, NS Solutions and IBM Japan storage solutions, and collaborating on this service is a natural extension of the relationships between companies. IBM Japan will provide the storage hardware, NS Solutions Corporation will assist in the technical support, and both companies will jointly market this service," said Toshiyuki Sengoku, senior executive director of NS Solutions Corporation. "IPStor's fast remote replication functionality and its connectivity over any protocol plays a key role in making this disaster recovery service package complete and very cost effective."

The service hosted at A&I System's IDC entails collecting data in supplemental storage set up at customer sites, and holding it in storage established at the IDC. A key feature of this service is its lower cost of ownership, made possible by IPStor's asymmetric nature, to employ low-cost circuits at IDC-side facilities. Since storage is provided at client sites, the service can be used as an integrated storage solution.

"FalconStor's partnership with NS Solutions Corporation has been very productive," said Alex Jiang, FalconStor vice president of Sales and Marketing for Asia Pacific. "Their knowledge base of IPStor is exceptional and has enabled them to be very successful in helping IDCs, such as A&I System, to build a practice helping customers set up a cost-effective backup center to protect against disasters."

To read the complete release, including the Safe Harbor agreement, visit www.falconstor.com/AISystem.asp .