Software consolidates and centralizes data.

Press Release Summary:



Leveraging IPStor® enterprise level software, iSCSI Storage Server transforms Microsoft® Windows Storage Server 2003 into unified storage platform. It provides file and block level services, addressing needs of users seeking to centralize and consolidate storage, improve availability, consolidate backup, and provide offsite replication. Software supports Volume Shadow Copy Service and enables SAN-based snapshot, delta replication, and zero-impact backup and restore services.



Original Press Release:


FalconStor Ships iSCSI Storage Server Solution for Microsoft Windows Storage Server 2003


Company Launches Partner Program for Windows Storage Server Appliance Providers to Deliver Simple, Affordable Fully Featured iSCSI Network Storage Services

NEW YORK, NEW YORK, April 26, 2004- FalconStor Software, Inc. (NASDAQ: FALC), a leading developer of network storage infrastructure software, today announced availability of iSCSI Storage Server, powered by IPStor, the first fully-featured, seamlessly integrated solution designed specifically for the Microsoft® Windows Storage Server 2003® platform. The iSCSI Storage Server software will be made available via providers of Windows Storage Server 2003-based devices.

The iSCSI Storage Server leverages FalconStor's award winning IPStor® enterprise level software, and is designed specifically to transform the Microsoft Windows Storage Server 2003 into a unified storage platform, providing both file and block level services. The iSCSI Storage Server addresses the needs of SMB/departmental customers seeking to centralize and consolidate their storage, improve availability, consolidate backup, and provide offsite replication. The iSCSI Storage Server also includes support for Microsoft's Volume Shadow Copy Service (VSS). Organizations that have been unable to move to a Fibre Channel SAN due to cost or complexity issues will now be able to consolidate storage for Microsoft Exchange Server, Microsoft SQL Server, Oracle, and other application servers.

Texas Tech University selected the iSCSI Storage Server on a Dell PowerVault 775N cluster to consolidate storage onto an iSCSI SAN for many of the school's web servers and departmental applications. "FalconStor has intelligently leveraged Microsoft technology, and has enabled us to establish portability and enhance backup capabilities and reliability for our web server farms and departmental web-based applications using the iSCSI Storage Server," said Dustin Jordan, manager of Server Administration for Texas Tech University. "The synergy between the Microsoft and FalconStor products will allow us to take full advantage of breakthrough capabilities that will enable us to manage our data stores more effectively. During this time of tight budget constraints, the iSCSI Storage Server will provide a flexible mechanism for meeting the storage needs of student, facility and staff applications with very little time, money and effort."

"Microsoft Windows Storage Server 2003 is already a leading NAS solution for the SMB customer, and we have seen encouraging adoption of the Microsoft iSCSI architecture, VSS, and Microsoft MPIO for Exchange and SQL users to improve their storage management," stated Marcus Schmidt, senior product manager at Microsoft Corp. "Microsoft is pleased to be working with FalconStor to enable affordable storage solutions based on Windows Storage Server 2003 and the Windows platform."

In addition to centralized disk capacity provisioning, the iSCSI Storage Server enables Windows Storage Server 2003 to offer SAN-based snapshot, delta replication and zero-impact backup and restore services to application hosts attached to an IP/iSCSI network. To optimize system availability and business productivity, the iSCSI Storage Server also offers mirroring and cluster services, which enable continuous operation during a planned or unplanned outage.

"Initial customer feedback has been overwhelmingly positive, especially from users who are still tied to DAS and were deterred from deploying SANs due to affordability, usability and ease of installation issues," stated FalconStor CEO and Chairman ReiJane Huai. "We look forward to expanding our relationships with Windows Storage Server 2003 OEM partners to bring this solution to the global market."

"SMBs and field offices of large organizations require solutions that provide optimum price/performance for their NAS and iSCSI storage environments. Though budget conscious, these customers don't want to sacrifice critical storage attributes such as business continuity and disaster recovery planning," said Michael Karp, senior analyst, Enterprise Management Associates. "FalconStor's iSCSI Storage Server delivers high availability and business continuity in networks leveraging Microsoft solutions such as Exchange, SQL Server, and Windows Storage Server 2003."

To ensure rapid, simple deployment with minimal operating cost, the management console of the iSCSI Storage Server uses the built-in Web User Interface of Windows Storage Server 2003. Supported iSCSI initiators include the Microsoft software initiators for Windows 2000, Windows Server 2003, and Windows XP. The company is planning to release a FalconStor-developed DSM for Microsoft's Multi-path I/O (MPIO) in the near future.

Comments on FalconStor's iSCSI Storage Server, powered by IPStor, from leading storage vendors:

Jim Wong, President, IT Products Business Group

Acer, Inc., headquartered in Taiwan

"Acer is committed to delivering comprehensive IT storage solutions, and understands that the data of an organization is important, regardless of how large or small the business. IPStor's ability to easily embrace industry standards such as iSCSI is one of many reasons we formed a strategic alliance with FalconStor, and Acer's iSCSI Storage Server, powered by IPStor, delivers an optimum price/performance for NAS and iSCSI storage environments as it enables the most efficient data movement. Together, FalconStor and Acer deliver upon the promise of high availability and business continuity in servers and networks for Windows Storage Server 2003 requiring capabilities such as continuous backup and rapid data recovery."

Joe Braun, Product Manager

Advanced Unibyte, headquartered in Germany

"Advanced Unibyte is delighted to incorporate FalconStor iSCSI Storage Server technology with the OxygenNAS server. Our customers will now be able to take advantage of block level storage aggregation and provisioning, in addition to file level access with a compelling return on investment."

Joe Gervais, Director of Marketing

Alacritech Inc., headquartered in California, USA

"The FalconStor iSCSI Storage Server software fulfills a business need by providing complementary block storage services to Windows Storage Server 2003. Servers incorporating FalconStor's software and TNICs from Alacritech provide businesses with best-of-breed iSCSI SAN and NAS functionality. IP SANs using this solution coupled with SAN clients using Alacritech's iSCSI Accelerators and the Microsoft iSCSI Software Initiator provide businesses with an ideal, end-to-end Windows solution for continuous backup and rapid data recovery."

Y.T. Yang, President

AXIOMTEK CO., LTD., headquartered in Taiwan

"Alliances with companies like FalconStor are enabling end users to seamlessly deploy proven storage technologies with a wide variety of existing and emerging networking protocols. FASTORA's 1U and 2U rackmountable NAS servers, targeted for small or home offices, feature a compact size with high storage capacities. Combining the iSCSI Storage Server, powered by IPStor, with AXIOMTEK's FASTORA line for Windows Storage Server 2003 will allow customers to efficiently share their storage resources with the benefits of IP networks, including lower cost of ownership and simplified management."

Vic Mahadevan, President and CEO

MaXXan Systems, headquartered in California, USA

"The MaXXan Storage Gateway systems combined with iSCSI Storage Server software powered by IPStor make for a compelling solution. Since the software seamlessly integrates with the embedded Windows Storage Server 2003, the systems can serve as the storage backbone of an on-demand computing environment. Our combined technologies represent the ideal solution for a broad range of deployment scenarios, supporting both IP and Fibre Channel environments and enabling economical deployment of NAS, iSCSI SAN, as well as Fibre Channel SANs."

Frank Berry, Vice President of Marketing

QLogic Corp., headquartered in California, USA

"The Alliance with FalconStor and Dell enables end users to seamlessly deploy proven storage technologies allowing customers to efficiently share their storage resources with the benefits of IP networks, including lower cost of ownership and simplified management, while simultaneously enjoying enterprise level storage services for business continuity and high availability, including mirroring, snapshot, and remote replication. QLogic's line of iSCSI HBAs, in combination with the FalconStor iSCSI Storage Server and Dell's family of PowerVault NAS products, will allow customers to deploy reliable end-to-end iSCSI SAN solutions."

Hilo Chen, President and CEO

Systex, headquartered in Taiwan

"Systex is aiming to become a global player in the storage industry, with the target market being corporate storage. Our line of ExpreStor NAS, SAN and Intelligent Storage solutions can fully leverage FalconStor's iSCSI Storage Server technology, and together seamlessly deliver integrated network storage services for Windows Storage Server 2003. Our goal is to be able to offer better performance and reliability than many of the current competitors in the market, and working with FalconStor technology will help Systex build upon its success throughout the year ahead."

Marcus Huelsmann, Product Manager Server Platform

Wortmann AG, headquartered in Germany

"The combination of the FalconStor iSCSI Storage Server technology and our commitment to delivering easy to deploy SAN and NAS solutions will enable us to better penetrate the emerging IP SAN market in Germany."

Pricing and Availability

Information on iSCSI Storage Server availability and pricing can be obtained by contacting Acer, AXIOMTEK, MaXXan, and Systex. iSCSI Storage Server software prices start under $2,000. FalconStor also makes available optional 7x24 Gold Technical Support at an additional cost. For more on pricing and availability, contact FalconStor at (631) 773-5858 or email iscsiserver@falconstor.com, or visit www.falconstor.com/iscsiserver.asp.

Further strengthening its commitment to support Microsoft technology and users, FalconStor will be participating at, and demonstrating the iSCSI Storage Server during the Microsoft Tech-Ed 2004 Expo to be held May 23 - May 28, 2004 in San Diego, California.

About FalconStor

FalconStor Software, Inc. (Nasdaq: FALC), is a leading developer of network storage infrastructure software solutions designed to optimize the performance and availability of today's complex IT infrastructures. Deployed by a wide range of Fortune 1000 enterprises, FalconStor's flagship product, IPStor software, optimizes storage utilization, accelerates backup and recovery, maximizes I/O performance and ensures business continuity via sophisticated data replication services. It is available and supported through major OEMs, system integrators and resellers worldwide.

Founded in 2000, 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.

FalconStor Software and IPStor are registered trademarks of FalconStor Software, Inc. All other company and product names contained herein are trademarks of the respective holders.

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