FalconStor and nStor Certification Programs Bring Data Protection Solutions to Market; Demonstrates Commitment to Providing Best in Class Products that Meet the Needs of Today's Small to Medium Businesses

Business Wire, April 13, 2005

PHOENIX -- nStor Corporation, a subsidiary of nStor Technologies, Inc. (AMEX:NSO) and an innovative developer of storage-network solutions, today announced that it has completed certification testing with FalconStor Software(R) (NASDAQ:FALC) to ensure interoperability between FalconStor's VirtualTape Library (VTL) and IPStor(R) Enterprise Edition software products and nStor's SATA based RAID solutions.

The resulting solution utilizes FalconStor's VTL software and the NexStor(R) 4700 Serial ATA (SATA) system to enhance the speed, reliability, and availability of backups, without changing existing tape backup software and procedures. This certification will better enable customers to achieve high-speed backup and recovery requirements while also providing a high level of management and protection for data intensive networks.

FalconStor's IPStor and VTL solutions leverage the company's expertise in enterprise-level software and bring those features and functionality to small and medium businesses (SMBs). Combined with the reliability, ease-of-use and low cost of nStor RAID solutions, FalconStor's VTL software will enable customers to use nStor SATA based RAID to emulate a tape drive and library. The result is that administrators will have an easy way to create and attach virtual tape drives and libraries to their existing backup infrastructure. This will provide a cost effective, high performance and reliable backup and recovery solution not found with traditional tape only solutions.

IPStor provides businesses with a wide array of advanced storage services, ensuring that data is always available, quickly accessible, and easily recoverable with point-in-time integrity in the event of any data loss from small mishaps to major disasters. When coupled with IPStor, nStor's SATA and fiber channel RAID products allow customers to benefit from a comprehensive, high performance, but affordable, data protection solution.

"FalconStor will continue to provide fully interoperable, highly scalable solutions through successful product certifications with solutions such as nStor's disk subsystem," said Bernie Wu, FalconStor vice president of business development. "Joint certifications such as this ensure quality and compatibility of key elements in an IT environment to ensure protection of vital business information."

"Our collaboration with FalconStor validates our commitment to providing industry leading products and services to meet the needs of today's small to medium business storage customer. Our goal is to create solutions that will integrate products and services that ensure the end products maximize business efficiency through intuitive, high-performance, value-based offerings," noted Lisa Hart, nStor's executive vice president, marketing and alliances.

FalconStor is demonstrating the configuration at SNW in Phoenix. nStor is also debuting their OneStor family of SAS/SATA products at the show.

nStor's products and services support data networks utilizing advanced technologies. These products include nStor's NexStor and newly introduced OneStor(TM) platform of products that include Fibre, SAS, SCSI and SATA platforms and StorView storage management software. The Company's products protect data across a multitude of storage-intensive applications, such as finance, healthcare and video. As a result, nStor's solutions form the storage foundation for businesses of all sizes as well as government agencies and universities worldwide. Combining StorView management tools and the power of integrated platforms allows for simple, intelligent and affordable networked storage while requiring no specialized expertise to install and manage.

About nStor Corporation, Inc.

Headquartered in Carlsbad, Calif., nStor is a wholly owned subsidiary of nStor Technologies, Inc. (AMEX: NSO) and developer of data storage solutions that are ideally suited for both large enterprises as well as small to mid-sized businesses. The Company's flagship controller technology and StorView software form the foundation for the NexStor and OneStor family of turnkey solutions that support today's leading operating environments. Designed for storage-intensive environments and mission-critical applications, nStor's products are offered in various architectures including Fibre Channel, SAS, SCSI and SATA and are focused on addressing customers' business needs and applications. The Company markets its storage solutions through a global network of OEM partners and solutions integrators. For more information, visit www.nstor.com.

About Storage Networking World

Storage Networking World, co-owned by IDG's Computerworld and the Storage Networking Industry Association (SNIA), is the industry's largest gathering of storage networking professionals and thought leaders. This premier event, taking place April 12-15, 2005 at the JW Marriot Desert Ridge Resort in Phoenix, Ariz., offers both vendor and user communities the opportunity to explore today's storage technology market and help develop the future of storage networking solutions. The latest conference agenda and program information are available online at http://www.snwusa.com.