FalconStor and China Security & Surveillance Technology Partner to Deliver Data Protection and Continuity for Digital Video Surveillance

Business Wire, August 5, 2008

Companies Complement Digital Information and Storage Optimization Solutions with Joint Development and Marketing Initiatives

MELVILLE, N.Y. -- FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY Open[TM] data protection solutions, today announced a partnering agreement with China Security & Surveillance Technology, Inc. (CSST) (NYSE: CSR), to bring the efficiencies of SAN virtualization, storage provisioning, business continuity and storage management to the digital video security and surveillance market. As part of this agreement, the companies will collaborate to jointly address the worldwide market for digital video security and surveillance with co-development and co-marketing activities.

CSST engages in the manufacturing, distribution, installation, and maintenance of security and surveillance systems throughout China. Its customer base includes financial institutions, transportation facilities, telecommunication providers, and government agencies. The digital IP surveillance market is growing fast, and the data needs to be protected and recoverable. CSST identified FalconStor as the strategic partner able to provide a total storage solution for CSST's surveillance systems.

"Managing the storage needs of digital surveillance systems is critical as the security and surveillance industry continues to grow significantly in China and around the world," said Dr. Eric Chen, vice president and general manager, FalconStor Asia Pacific Operations. "CSST is at the forefront of next-generation digital surveillance systems, and it demands robust data protection and business continuity technology from FalconStor."

CSST leverages FalconStor[R] Network Storage Server (NSS) to connect to storage devices from any vendor and to manage all the data coming in from their digital cameras. Storage virtualization and provisioning with FalconStor NSS gives CSST digital multimedia systems the flexibility and scalability needed to accommodate rapid storage growth. Used in combination with NSS, FalconStor Continuous Data ProtectorTM (CDP) ensures the protection and availability of all security footage from CSST's digital cameras through efficient replication to a central data center.

"High-capacity storage, with sophisticated data protection is essential for a successful IP surveillance system," said China Security Chief Executive Officer Guoshen Tu. "As local government Safe City projects continue to accelerate in China, there is a major need for surveillance systems accompanied by advanced data storage solutions. FalconStor will help CSST advance its technology in the area of IP-based storage, which strengthens our ability to service Safe City contracts and generate new business. We are excited to be collaborating with FalconStor."

CSST has been helping its customers transition their video surveillance systems from analog to digital video to eliminate the labor-intensive, time-consuming and tedious process of extracting useful information. With an IP Surveillance System, video data is available anywhere at any time and can be searched and reviewed rapidly. Companies can also use software applications for detection and analysis, license plate recognition, encryption, watermarking and connection authentication at the camera level -- features not feasible with an analog camera system.

Oyster Bay, New York-based technology research firm ABI Research believes that the video surveillance market is poised for explosive growth, which the firm forecasts to expand from revenue of about $13.5 billion in 2006 to a remarkable $46 billion in 2013. Those figures include cameras, computers and storage, professional services, and hardware infrastructure: everything that goes into an end-to-end security system.

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University and Wuhan University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout the PRC.

About FalconStor Software, Inc.

FalconStor Software, Inc. (NASDAQ: FALC), #5 in Forbes 2008 list of America's Fastest-Growing Technology Companies, is the market leader in disk-based data protection. We deliver proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. Our TOTALLY Open[TM] technology solutions, built upon the award-winning IPStor[R] platform, include the industry leading Virtual Tape Library (VTL) with deduplication, Continuous Data Protector[TM] (CDP), Network Storage Server (NSS), and Replication option for disaster recovery and remote office protection. Our products are available from major OEMs and solution providers including Acer, Brocade, EMC, COPAN Systems, H3C, IBM, MPC, Pillar Data Systems and Sun and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises.