FalconStor Contributes Over $200,000 to China Earthquake Relief

Business Wire, June 18, 2008

MELVILLE, N.Y. -- FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY Open[TM] network storage solutions, today announced that it has donated over $200,000 for victims of the earthquake that struck China's Sichuan Province last month.

"FalconStor extends its deepest sympathies to the people of the Sichuan province," said James Weber, chief financial officer at FalconStor Software. "FalconStor and its employees believe it's our responsibility to assist local and global communities. We hope our contribution can help accelerate the process of assisting those impacted by this terrible natural disaster."

FalconStor is making a company donation and is also matching individual employee contributions to the American Red Cross, AmeriCares and GlobalGiving, of up to $1,000 per donation. To date, FalconStor and its employees have donated $200,000 to the American Red Cross. This contribution will enable the American Red Cross to support the relief efforts of the International Federation of Red Cross and Red Crescent Societies, including the Red Cross Society of China, to provide shelter, clean water, and other basic necessities, purchase and distribute supplies, coordinate relief efforts, and deploy staff to the affected area.

"The American Red Cross is grateful for the outpouring of compassion from FalconStor and its employees," said David Meltzer, senior vice president, International Services for the American Red Cross. "Their generosity and support of the Red Cross mission allows us to bring help and hope to the individuals and families that have been affected by this disaster. I would like to thank the entire FalconStor family for helping our neighbors around the world."

About FalconStor Software, Inc.

FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

FalconStor and FalconStor Software are registered trademarks, and TOTALLY Open is a trademark of FalconStor Software, Inc. All other company and product names contained herein may be trademarks of their respective holders.