Crossroads Systems and BDT AG Form Strategic Partnership; Global Leaders Come Together to Provide Unmatched Performance and Versatility in Storage

Business Wire, March 15, 2006

AUSTIN, Texas -- Crossroads Systems, Inc. (Pink Sheets:CRDS), leading provider of Business Information Assurance solutions for guaranteed access, resiliency and security of enterprise information, today announced a strategic partnership with German-based BDT AG, the world's largest designer and manufacturer of OEM tape autoloaders. The strategic combination of Crossroads' enterprise-class storage, connectivity and security products coupled with BDT's market-leading autoloader solutions will vastly increase the capabilities and performance of stored data. As BDT's 26-year-old and Crossroads' 10-year-old business track records reflect unmatched legacies of excellence, joint efforts between both companies will result in new solutions, expanded sales activities, and geographically-enhanced market reach.

"As the world's largest designer and manufacturer of OEM tape autoloaders, BDT AG is proud to announce this strategic partnership with Crossroads," says Friedhelm Steinhiber, President & Chief Executive Office of BDT. "Not only is Crossroads the #1 provider of SAN storage routing devices, but it also delivers simplified, centralized and cost-effective solutions that are of unprecedented quality. We are looking forward to bring to market new joint offerings that reflect the engineering superiority and market leadership of both companies."

BIA Meets Simplified, Unified Storage Solutions

Business Information Assurance (BIA) is the process by which corporations ensure that their critical business information is secure (from both outside and internal influences), resilient, (stored data that has never been compromised upon backup, replication, or recovery), and accessible (stored data is readily available) -- anytime, anywhere.

"Every day, corporations worldwide are suffering information compromises that bring untold costs to businesses each year," says Greg Reny, Vice President of Strategic Accounts, Crossroads Systems. "Data is a precious commodity for any business -- loss or corruption of which can mean the difference between a functional organization or one that is no longer in business. By providing accessible, reliable, secure storage solutions that support both US and EU regulations and requirements surrounding data integrity and security, BDT AG and Crossroads meet the critical need for business information assurance solutions able to solve these currently expensive issues."

Unmatched, Cost-Effective Accessibility

In a move that brings seven generations worth of fibre connectivity solutions to the IP marketplace, highest-quality and low-cost tape libraries from BDT will be networked via Crossroads innovative connectivity solutions. Crossroads Storage Routing Devices used initially in BDT tape libraries provide unmatched access to information whenever required -- in an incredibly cost-efficient manner.

"BDT chose to engage in a strategic partnership with Crossroads for the superior reliability track record of its storage solutions," says Christos Psaridis, Senior Executive Vice President and Chief Operating Officer of BDT. "The BDT-Crossroads solutions offer native tape libraries that allow for easy IP SAN deployment. Crossroads will support BDT's expansion into network attach tape solutions by leveraging their current storage routing devices to provide the connectivity and features to meet the needs of the current SAN marketplace."

The Crossroads-BDT solution will be available to large OEM providers through BDT's extensive international sales team and will utilize the joint sales forces of both Crossroads and BDT to provide best-in-class products throughout the United States, Europe and the rest of the world.

"Business Information Assurance calls for a centralized, simplified and cost-effective approach to process and solutions," said Rob Sims, president and chief executive officer of Crossroads Systems. "The Crossroads-BDT partnership embodies these core philosophies -- providing unmatched versatility, performance and management of storage resources. We're very pleased to partner with BDT AG as it creates a win for both companies, our clients and the industry in general."

About BDT AG

BDT was founded in 1967 in Rottweil, Germany, where its headquarters is located today. With over 650 employees worldwide, BDT is a leading manufacturer of storage automation systems and paper handling devices -- such as feeders and finishers. BDT's core expertise is in automated handling of different media -- such as paper, tapes, discs and drives. BDT products are best-in-class and offer the ultimate cost-performance ratios to targeted market segments such as OEM customers. BDT customers are major global IT companies selecting BDT for the unmatched excellence, highly-innovative and trend-setting nature of its product solutions. BDT paper handling systems for printers and copies are most competitive and reliable whereas its storage automation devices deliver industry-leading data archiving and backup solutions used by most of the major IT companies. Through its 35 years of solid growth, BDT has been expanding its operations worldwide: BDT Germany hosts Research & Development, corporate strategic functions and part of its production operations, BDT Guadalajara, Mexico manufactures the majority of today's product platforms whereas BDT USA maintains 2 sales offices and a repair center. Towards the end of March 2006, BDT will also start production at its own new facility in Zhuhai, China. For more information about BDT, please visit: www.BDT.de or call +49 (0) 741 / 248 01.