Crossroads Systems Announces Q2'08 Results

Business Wire, May 28, 2008

AUSTIN, Texas -- Crossroads Systems, Inc. (OTC Pink Sheets: CRDS.PK), a leading provider of business information assurance for reliable data protection, robust data security and guaranteed connectivity solutions, today announced results for its fiscal second quarter ended April 30, 2008 (Q2'08).

Revenue totaled $5.1 million for Q2'08 compared to $5.5 million in the fiscal first quarter ended January 31, 2008 (Q1'08). Product revenue totaled $2.3 million for Q2'08 compared to $2.8 million for Q1'08. In addition, revenue from IP license, royalty and other totaled $2.8 million for Q2'08 compared to $2.7 million for Q1'08. Gross profit was $4.1 million, or 81 percent for Q2'08, compared to $4.5 million, or 82 percent for Q1'08. Net loss for Q2'08 was $2.5 million, or $0.09 cents loss per share, compared to a net loss of $1.2 million, or $0.04 cents loss per share in Q1'08.

To learn more about Crossroads' financial information, please visit: http://www.crossroads.com/InvestorRelations/

About Crossroads Systems, Inc.

Headquartered in Austin, Texas, Crossroads Systems is a global leading provider of data security, resiliency and connectivity solutions. Crossroads (symbol: CRDS) trades over-the-counter on Pink Sheets and posts its financial disclosure reports, press releases and other related documentation on the OTCIQ web service of the Pink Sheets Web Site. More information about Crossroads Systems, Inc is available at www.crossroads.com.

Forward-Looking Statements

This release may include forward-looking statements. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Crossroads are intended to identify such forward-looking statements. These statements reflect the current views and assumptions of Crossroads and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

(c) 2008 Crossroads Systems, Inc. Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.

-- See Tables Attached --

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]