McDATA and FalconStor Deliver Advanced Data Recovery for The ROC; New Strategic Partnership Paves Way for Next-Generation Data Consolidation Capabilities

Business Wire, March 13, 2006

BROOMFIELD, Colo. -- Companies are under tremendous pressure to ensure adequate protection and recoverability of rapidly growing enterprise data while also trying to reduce data management costs. Today, McDATA Corporation (Nasdaq: MCDTA)(Nasdaq: MCDT), the leading provider of storage networking solutions, and FalconStor Software (Nasdaq: FALC), the premier developer of data protection software, announced a strategic partnership that will help companies cost-effectively protect and rapidly recover more data and meet compliance and business continuity objectives. Under the agreement, McDATA will re-brand and resell FalconStor's IPStor(R) software replication technology as part of an integrated data recovery solution to enable McDATA's ROC (Remote Office Consolidation) and under McDATA's SpectraNet(TM) brand.

"The SpectraNet Replicator for Exchange (SRE) is the first offering based on this agreement and the first deliverable under McDATA's intelligent fabric services strategy," said Todd Oseth, chief operating officer, McDATA. "Leveraging FalconStor's proven IPStor replication technology, the SRE provides data replication services to enable new, cost-effective alternatives to traditional approaches to data protection. Additionally, the results we've seen in terms of meeting recovery objectives and reducing costs are dramatic -- often reducing recovery time and recovery point exposure by more than 90 percent and driving significant storage cost savings."

The SRE is an important component of McDATA's newly announced ROC (Remote Office Consolidation) offering. The ROC is a complete set of products and services that enable customers to consolidate, centrally manage and protect remote office applications and data assets, regardless of data type, all while meeting service levels. The SRE provides improved recoverability for Microsoft(R) Exchange, one of the most popular applications deployed today yet often under protected. The SpectraNet Replicator for Exchange provides dramatically improved local and remote recoverability of Microsoft Exchange environments, and supports heterogeneous, tiered storage to reduce infrastructure and management costs.

The SRE, in addition to the whole ROC solution, leverages McDATA's market-leading extension and compression technologies to reduce bandwidth costs, as well as years of professional services experience designing and deploying SAN-based data replication solutions. McDATA Global Services can provide ongoing support for the SpectraNet solutions, including managed bandwidth connectivity and remote network monitoring.

"FalconStor's IPStor replication technology coupled with McDATA's SRE solution provides a powerful combination -- offering the most adaptive data protection solutions for the extended enterprise," said Don Mead, vice president of marketing, FalconStor. "Partnering with industry leaders like McDATA gives our mutual customers advanced storage networking and best-in-class business continuity/disaster recovery functionality to meet and exceed their changing data protection goals."

About McDATA (www.mcdata.com)

McDATA (Nasdaq: MCDTA)(Nasdaq: MCDT) is the leading provider of storage networking solutions, helping customers build, globally connect, optimize and centrally manage data infrastructures across SAN, MAN and WAN environments. With nearly 25 years' experience developing SAN products, services and solutions, McDATA is the trusted partner in the world's largest data centers, connecting more than two-thirds of all networked data.

Forward-Looking Statements

This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. Readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "estimates," "anticipates," "intends," "targets," or the like to be uncertain and forward-looking. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, McDATA's relationships with EMC, IBM and Hitachi Data Systems and the level of their orders, aggressive price competition by numerous other SAN and IP switch suppliers, OEM qualification of our new products -- such as the Intrepid 10000 Director, integration of CNT's sales and marketing functions, manufacturing constraints, constraints in obtaining third party product for resale and other risk factors that are disclosed in McDATA's filings with the Securities and Exchange Commission. These cautionary statements by McDATA should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by McDATA. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. McDATA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.