FalconStor's Windows-based iSCSI Technology Supplements Microsoft Systems Center Data Protection Manager 2006, and Provides Additional Disk-Based Protection


STORAGE NETWORKING WORLD 2005, ORLANDO, FL, October 25, 2005-FalconStor Software, Inc. (Nasdaq: FALC), a leading provider of network storage software solutions, today announced a comprehensive set of value-added services, based on FalconStor's award-winning iSCSI Storage Server for Windows solution and DiskSafeÔ product, optimized for Microsoft System Center Data Protection Manager (DPM) 2006.

IT managers can leverage FalconStor's software to:
o Provision iSCSI virtual storage and data replication services to the DPM server
o Replicate the DPM server's data over any IP network with 100% data integrity
o Remotely boot and recover (Bare Metal Recovery) the DPM Server and its protected Windows File Servers
o Extend the DPM server's scope with continuous, block-level protection and rapid recovery services for Microsoft Exchange and SQL Server

DPM provides rapid and reliable disk-based backup and recovery for files on Windows servers. FalconStor's Windows-based iSCSI Storage Server augments DPM environments by enhancing the capabilities of the DPM server's underlying centralized disk storage. This includes delivering network-based disk protection services to other application servers, provisioning storage to the DPM server, and thereby providing remote replication of DPM's snapshots of Windows file-based data to a secondary location for disaster protection, with centralized zero-impact backup to tape. DiskSafe for Windows, FalconStor's advanced host-based replication application, enables Bare Metal recovery of the system volumes of DPM-protected file servers by the replication of each file server's system volume to the iSCSI Storage Server in the event of a system crash.

"FalconStor's product technology is very complementary to System Center Data Protection Manager, and offers an additional layer of protection to businesses of all sizes," said Ben Matheson, Group Product Manager, at Microsoft Corp. "Microsoft is pleased to continue to work closely with FalconStor on the common goal to provide customers with affordable disk to disk protection that improves recovery point and recovery time objectives."

In addition to providing further protection of DPM clients and the DPM server itself, system administrators may also use FalconStor's iSCSI Storage server to expand their level of data protection for servers running Microsoft Exchange and SQL. The combination of FalconStor's iSCSI Storage Server, VSS snapshot agents for SQL Server and Exchange, and DiskSafe produces snapshots with transactional integrity and point-in-time consistency for remote replication, and bare metal recovery for those servers.

"FalconStor has always had an impressive suite of data protection features that can be used with a wide variety of platforms," said Mike Karp, senior analyst, Enterprise Management Associates. "Their iSCSI Storage Server and DiskSafe solutions enable Windows users to enjoy extended protection to their DPM servers right now. Organizations that leverage both DPM and FalconStor will enjoy a comprehensive backup and recovery solution for the Windows market."

"Microsoft's DPM initiative is the key to providing improved, affordable disk-based recovery time and recovery points," said Bernie Wu, FalconStor vice president of business development. "We believe that our software offering makes DPM-based disk protection deployments even more compelling, especially since it uses familiar management tools under Windows and widely available servers and storage systems."

The DiskSafe for Windows solution is also qualified and supported by FalconStor for use with the HP iSCSI Feature Pack and the HP ProLiant Data Protection Storage Server.

"HP is leading the market in DPM-based solutions with our HP ProLiant Data Protection Storage Server family and HP iSCSI Feature Pack," said Ian Duncan, worldwide marketing manager, StorageWorks NAS Division, HP. "We're pleased that FalconStor and their DiskSafe product can extend those capabilities to provide greater value to our customers."

For more information on how to deploy FalconStor's complementary solutions in conjunction with DPM, with additional ways of leveraging centralizing disk-based data protection, visit www.falconstor.com/DPM. iSCSI Windows Storage Server and DiskSafe products are available immediately through FalconStor's network of OEMs, VARs, and distributors.

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 management and backup 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 1-631-777-5188.

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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