FalconStor VirtualTape Library Receives Certification with Grau Infinistore Tape Library


SCHWÄBISCH GMÜND/MUNICH, November 7, 2005-FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage software solutions, today announced that its VirtualTape Library (VTL) solution has successfully completed interoperability testing with the Infinistore Tape Library from Grau Data Storage. Grau will also distribute FalconStor's VTL as part of its "Infinistore Virtual Tape Library" solution.

Interoperability testing between VTL and the Infinistore Tape Library took place in Grau´s own lab in Schwäbisch Gmünd. Infinistore Tape Libraries are designed to store data from 1 to 3 TB. The libraries seamlessly support all established backup and archiving applications.

"We estimate that nowadays the amount of data to be stored triples or even quintuples within three years," said Herbert Grau, CEO of Grau Data Storage AG. "FalconStor´s VTL solution provides our customers with long-term planning reliability. They can easily cope with ever-shrinking backup windows while keeping time and effort for storage administration in check. Thus, FalconStor perfectly complements our existing ILM portfolio."

FalconStor's VTL software consolidates the management of backup resources while enhancing the reliability of backup operations and accelerating the speed of recovery. FalconStor's VTL leverages and provisions industry standard high-speed disk as virtual tape drives/libraries to backup servers attached to a SAN via Fibre Channel (FC), iSCSI or NDMP protocol, to maximize performance and return on investment.

FalconStor´s VTL software also encrypts physical tape media using Advanced Encryption Standard (AES), a highly secure and proven encryption method. This prevents data from being accessed without authorization, e.g. in case the tape gets lost during transportation.

"Both Grau Data Storage and FalconStor are working closely with a variety of channel partners," said Guy Berlo, Regional Director, Central Region of FalconStor Software. "The partners greatly benefit from the mutual solution, since they can offer their customers an integrated platform for high-speed backup and restore in conjunction with systematic data archiving - this is what Information Lifecycle Management is all about."

About GRAU Data Storage AG
GRAU Data Storage AG, headquartered in Schwäbisch Gmünd, today employs about 60 people, specializes in the development and marketing of hardware and software systems for information lifecycle management (ILM), backup and archiving. Since the introduction of the INFINISTORE® product family in 1999, this innovative storage solution has already been installed at numerous renowned customers.

About FalconStor
FalconStor Software, Inc. (Nasdaq: FALC) is a leading developer of innovative network storage software that optimizes the protection and availability of enterprise and SMB data and applications, ensuring nonstop business productivity while simplifying storage and backup management to reduce operational costs. FalconStor's award-winning solutions-IPStor® Enterprise Edition, VirtualTape Library, and iSCSI Storage Server-are available from major OEMs, system integrators, and resellers, and are deployed worldwide by governments, educational institutions, and Fortune 1000 enterprises across industries including aerospace, energy production, financial services, healthcare, law, manufacturing, and telecommunications.

FalconStor is headquartered in Melville, NY, with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Technical Support Alliance Network (TSANet), Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

This press release includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include: delays in product development; market acceptance of FalconStor's products and services; technological change in the storage and networking industries; competition in the network storage software market; the potential failure of FalconStor's OEM partners to introduce or to market products incorporating FalconStor's products; intellectual property issues; and other risk factors discussed in FalconStor's reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission.

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