Gjun Resolves Messaging Server Affliction with FalconStor Continuous Data Protection; Taiwan's Largest IT Education Company Reduces Microsoft Exchange Disaster Recovery Time from Days to Minutes

Business Wire, August 22, 2006

MELVILLE, N.Y. -- FalconStor Software, Inc. (Nasdaq: FALC), the leading developer of proven data protection solutions, today announced that Gjun, one of Taiwan's largest IT education companies, has implemented FalconStor's continuous data protection (CDP) solution for Microsoft Exchange to safeguard the 24x7 operations of Gjun's messaging servers.

Gjun had relied on conventional tape backup, with a standby server for redundancy. In times of disaster recovery, the education company was vulnerable, having to rely on manual intervention from its IT staff while not being able to completely validate the usability of the backup tape. Through internal testing, Gjun found that the recovery of its complete Exchange server system and all its data took IT administrators an entire day -- an unacceptable situation. To rectify this issue and the instability of its e-mail server, Gjun turned to FalconStor's CDP solution for Exchange.

"Gjun places high demands on any system being considered for purchase. During the selection process, we demanded tests on the actual machine and designed some simulation scripts of real-world events, thus gradually testing the feasibility of the candidate solutions," said Win Wu, IT group manager at Gjun. "Choosing FalconStor CDP proved to be the right decision. It is now close to six months since the implementation, and there has not been even one crash in that time. We found that FalconStor CDP provided all the benefits of conventional tape backup and cluster redundancy in one unit, which suited our requirements perfectly."

Gjun's IT staff, used to work overtime during holidays and weekends to complete lengthy backups so that users were not impacted during production hours. Gjun was impressed with the ease of installation and the overall performance of the FalconStor CDP solution. During testing, Gjun pulled the plug on its Exchange server and tested recovery from another machine in order to assess the feasibility of its disaster recovery plan. With FalconStor CDP, recovery and restoration of Gjun's Exchange server was reduced from days to minutes.

"Educational institutions are finding FalconStor's continuous data protection a valuable asset in keeping the uptime of their messaging data server for students, staff, and faculty," said Alex Jiang, FalconStor vice president of sales and marketing for Asia Pacific. "For Gjun, FalconStor's continuous data protection addressed the significant issue of downtime, resulting in an ease of burden for its entire administration staff."

The outstanding performance of FalconStor CDP for Exchange has led Gjun to extend the scope of FalconStor CDP protection to the company's business management system SQL server, to protect student and lecturer information, class management records, and other databases. Currently Gjun is working on implementing and configuring the FalconStor CDP solution for its enterprise information portal and knowledge management system. Gjun is also considering further plans to bring all of its IT servers under the umbrella of FalconStor CDP's protection.

About Gjun

Gjun is widely accepted as Taiwan's number one IT education organization. Celebrating its 20th anniversary this year, Gjun has grown into a company with close to 100 branch schools, a staff of 800, and an IT system worth over 100 million NTD ($3 million). For the further information, please visit www.pcschool.com.tw/.> 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. Available from major OEMs, system integrators, and resellers, 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.

FalconStor is headquartered in Melville, New York, with offices throughout Europe and the Asia Pacific region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

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 delays in product development; market acceptance of FalconStor's products and services; technological change in the storage and networking industries; competition in the network storage software market; the potential failure of FalconStor's OEM partners to introduce or to market products incorporating FalconStor's products; 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.