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Software provides business continuity and disaster recovery.

Press Release Summary:

IPStor® v4.0 incorporates storage services for consolidation, performance optimization, business continuity, backup consolidation and acceleration, and open SAN connectivity. Replication Services utilize compression, encryption, and auto-resume capabilities to optimize network bandwidth utilization. HyperTrac Backup Accelerator allows third party backup software to backup remote server's disk over IP-SAN or FC-SAN at speeds up to 2 Gigabits/sec.

Original Press Release:

FalconStor Ships IPStor Version 4.0, Delivering Innovative Storage Services, Designed to Optimize Performance, Availability, and Manageability of Enterprise IT Infrastructures

Multi-Protocol/Platform Solution Addresses Corporate Storage Issues with Advanced Replication and Backup Acceleration Functionality

MELVILLE, N.Y., September 16, 2003-FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage infrastructure software solutions, today announced it has begun shipping IPStor® software version 4.0, which includes advanced data replication, as well as enhanced backup and management storage services, delivering one of the most comprehensive business continuity and disaster recovery solutions on the market today.

"The advanced functionality that FalconStor has incorporated into IPStor has enabled us to improve overall management and procedures by offloading backup processes from production servers and preventing the occurrence of storage issues potentially detrimental to our business," said Ron Cruz, FVP Manager of Engineering at Independence Community Bank. "And IPStor has already demonstrated a significant return on our investment by accelerating the backup speed of mission critical data over our SAN storage using our existing backup software and dedicated backup servers."

"This new version of IPStor delivers advanced storage services for SAN and NAS, especially in the area of replication," said Michael Karp, senior analyst, Enterprise Management Associates. "Because complex IT storage infrastructures can be managed with increased efficiency and minimal downtime, I expect to see both improved protection of corporate data and lowered storage management costs. That's a pretty nice combination."

The latest evolution of IPStor incorporates new storage services for storage consolidation, performance optimization, business continuity, backup consolidation and acceleration, and open SAN connectivity that enable IT management and supporting personnel to focus their efforts and time on mission-critical operations. IPStor software version 4.0 includes new functionality in the following solution areas:

Disaster Recovery

o Advanced Replication Services - Utilizes compression, encryption and auto-resume capabilities to optimize network bandwidth utilization and maximize end-to-end security for replicating SAN and NAS resources over the MAN/WAN.

o BareMetal Recovery - Minimizes server/desktop downtime by providing an IP-based boot service that continues operations in the event of a boot disk failure from a head crash, virus infection, or data corruption. The system reboots and runs from a SAN-based disk until repair operations are complete.

o Message Recovery for Microsoft Exchange - Simplifies and accelerates the recovery of messaging/email systems by automating the process of restoring deleted mailboxes and messages via an off-line recovery server.

Backup Acceleration

o HyperTrac Backup Accelerator - Allows third party backup software to backup a remote server's disk over IP-SAN or FC-SAN at speeds of up to 2 Gigabits per second. HyperTrac reduces network, host and administrative overhead by eliminating the need to install and manage ordinary backup agents for individual hosts.

o VirtualTape Library - Allows third party backup software to transfer data to and from a disk-based, virtual tape library over FC-SAN or IP-SAN at speeds of up to 2 Gigabit per second. The high-availability infrastructure of IPStor eliminates common failures caused by tape media or mechanical parts to optimize backup reliability. Customers can also benefit from the underlying services of IPStor, including tape mirroring, replication and capacity-on-demand to maximize ROI.

I/O Performance Optimization

o RAID - Utilizes software RAID and/or certified third party RAID controllers to maximize throughput and fault tolerance.

o HotZone - Greatly increases I/O performance of mission-critical applications by transparently re-mapping the most frequently accessed data to higher performance storage devices, such as solid-state disks (SSDs).

Enterprise-Class Manageability

o RealTime Data Migration - Leverages existing SAN to transport data in real-time between similar and dissimilar storage subsystems during storage upgrades, data center relocations, and server consolidations, while maintaining full availability of application servers.

o RealTime Virus Scanning - Prevents the network-attached storage (NAS) from being infiltrated and contaminated by malicious viruses.

o CallHome Support Service - Remote monitoring service provided by FalconStor, complements users' internal monitoring capabilities and increases availability via recognition of critical events, including impending component failures, and then proactively alerts Administrators for corrective action.

"IPStor has gained wide spread acceptance as the storage infrastructure software of choice by enterprise-level companies across a wide variety of industries, as demonstrated by the high number of recent, successful deployments at global customer sites," said Wayne Lam, FalconStor vice president of professional services. "We will continue to evolve IPStor through the development of new, innovative functionality designed to help businesses address real world storage issues, including business continuity, disaster recovery planning, and the escalating cost of storage management."

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, 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 or call 1-631-777-5188.

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