SOFTBANK IDC and Triangle Spirit Team with FalconStor to Launch Business Continuance & Disaster Recovery Services Facility in Japan; Disaster Recovery Center Powered by IPStor Software's Storage Services and FalconStor's PrimeVault Business Model

Business Wire, Dec 6, 2005

TOKYO -- FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage software solutions, today announced that SOFTBANK IDC Corp. and Triangle Spirit have teamed to launch a state-of-the-art disaster recovery services center in January 2006, powered by IPStor(R) software's advanced storage services and FalconStor's PrimeVault(TM) business model.

SOFTBANK IDC and Triangle Spirit will be targeting small and medium-size businesses (SMB) with their disaster recovery (DR) services facility. Leveraging FalconStor's recently launched PrimeVault service in the U.S., the SOFTBANK IDC and Triangle Spirit venture will provide the same high level of experience, service and security to its customers, utilizing FalconStor's IPStor solution for storage consolidation and virtualization, while enabling SMBs to replicate their data to the DR facility.

"Japan, especially Tokyo and Yokohama, is thought to be the high risk area in terms of disaster, at 7.1 times worse than Los Angeles, and 7.7 times worse than Osaka and Kobe," said Toru Hirai, CEO of Triangle Spirit. "FalconStor's IPStor solution provides a perfect and timely method to address the market for disaster recovery, especially with the recent Japanese government announcements of a business continuity guideline and its metropolitan area plan for government and financial institutions in case of large earthquakes.

"The government proclamations have certainly caught the attention of enterprises and SMBs, as they have started to consider disaster recovery solutions seriously," continued Mr. Hirai of Triangle Spirit. "Traditional DR systems can cost several to many million Yen to create, so most organizations have been only doing tape backup and remote vaulting using transportation services, which are not enough in today's IT age. FalconStor's technology is key for enabling our DR facility to be cost-effective in addressing business continuity for these organizations."

Both SOFTBANK IDC and Triangle Spirit concluded that the companies most seriously affected by disasters are SMBs.

To read the complete release, including the Safe Harbor agreement, visit http://www.falconstor.com/SoftbankIDCTriangleSpirit.asp.>

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