FalconStor's Virtual Tape Library and Continuous Data Protection Solutions Certified on Xyratex's HS-1235 Application Platform; eSeSIX First Partner to DeliverFalconStor Solution Built on Certified Platform

Business Wire, April 10, 2006

MELVILLE, N.Y. -- FalconStor Software, Inc. (Nasdaq: FALC), the leading developer of proven data protection solutions, today announced that both its virtual tape library (VTL) and its continuous data protection (CDP) solutions have been certified on the Xyratex HS-1235 application platform under the terms of that company's Technology Alliance Program. The combination of Xyratex's application platform with FalconStor's VTL software enables the delivery of virtual tape storage that scales up to 168 terabytes in a single rack, providing cost-effective disk-to-disk backup functionality for even the largest volumes of data.

"The key benefit of VTL technology is the rapid time to restore," said Guillaume Imberti, president and general manager, FalconStor EMEA. "There's no time wasted searching tapes to find the backed-up data. Xyratex's platform means that far more data can be protected, disk-to-disk, in a single rack, bringing the benefits of VTL to smaller but data-intensive organizations and also simplifying disk-to-disk backup for larger businesses."

This successful certification, part of Xyratex's 2U Application Platform Program, enables both Xyratex's and FalconStor's channel partners and OEMs to build value-added solutions for their customers. The first partner to take advantage of the certification is eSeSIX Computer GmbH, a leading value-added distributor based in Pfaffenhofen, Germany; eSeSIX will deliver intelligent backup and rapid recovery services based on Xyratex 2U hardware and FalconStor software.

"The combination of Xyratex's application platform and Falconstor's VTL software addresses a full range of market demands," said Andreas Mueller, Storage Business Unit Manager, eSeSIX. "Organizations with backup volumes up to six terabytes can create a virtual tape solution with a single compact 2U chassis. Larger organizations can scale the solution with the same eSeSIX platform combined with the Xyratex-based eSeSIX 4835, a 4U 48-drive 24-terabyte enclosure for a fully scalable tape virtualization solution that can easily expand to up to 168 terabytes of virtual tape storage in a single rack, providing cost-effective disk-to-disk backup functionality even for the largest volumes of data."

The capacity of the eSeSIX-branded HS-1235 application platform will enable eSeSIX to deliver turnkey storage appliances that address the intelligent backup, rapid recovery services, and centralized storage management needs of enterprises ranging from small to large. eSeSIX's solutions offer fast data protection and recovery while being cost-effective, scalable, and easy to deploy and manage.

"We are very happy to see this certification completed," said Tim Piper, director of product marketing, Xyratex. "Our partnerships at both this year's CeBIT show in Germany and the recently concluded Storage Networking World in San Diego have been met with positive success by our OEM and channel partners. We are very pleased that FalconStor solutions are now available on our HS-1235 platform."

About Xyratex's Application Platforms

The Xyratex application platform family leverages the company's proven world-class storage expertise to establish a new standard for ATX-based storage enclosures. The combination of computing power, reliability, and flexibility make the Xyratex application platforms an economical solution for a wide variety of applications. Customers can customize product functionality and create a range of solutions tailored to the end-user's needs.

About Xyratex

Xyratex is a leading provider of modular enterprise-class data storage subsystems and storage process technology. The company designs and manufactures enabling technology that provides OEM and disk drive manufacturer customers with data storage products to support high-performance storage and data communication networks. Xyratex has more than 20 years of experience in research and development relating to disk drives, storage systems, and high-speed communication protocols.

Founded in 1994 in a management buyout from IBM, Xyratex is headquartered in the UK and has an established global base with R&D and operational facilities in Europe, the United States, and Southeast Asia. For more information, visit www.xyratex.com.

About eSeSIX Computer

eSeSIX Computer is an independent value-added distributor of innovative and intelligent IT solutions and services. In addition, eSeSIX develops its own storage solutions, the MORPHOIS flexible storage systems. The company's motto, "Distribution is not enough," underlies a comprehensive service program. The fundamental idea of product line development is to supply companies with sustainable products that reduce complexity and costs. The product portfolio includes solutions for application management, security management, and storage management. Headquartered in Pfaffenhofen, Germany, the company was established in 1992 and is still owner run. Further information can be found at www.esesix.com.

About FalconStor

FalconStor Software, Inc. (Nasdaq: FALC) is the premier developer of adaptive data protection solutions that optimize data center efficiency and business continuity for all IT infrastructures. The company's innovative storage virtualization, continuous data protection (CDP), disaster recovery, and virtual tape library (VTL) solutions integrate seamlessly to ensure rapid data recovery and simplified storage management. FalconStor products - including award-winning IPStor(R) and VirtualTape Library software - are deployed worldwide by governments, educational institutions, and Fortune 1000 enterprises across industries including aerospace, energy production, financial services, healthcare, law, manufacturing, and telecommunications.