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iSCSI Storage Server Solution

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

NEW YORK --(Business Wire)-- April 26, 2004 -- Company Launches Partner Program for Windows Storage Server Appliance Providers to Deliver Simple, Affordable Fully Featured iSCSI Network Storage Services

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(R) Windows Storage Server 2003(R) 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(R) 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 read the complete release, including the Safe Harbor agreement, visit www.falconstor.com/iscsistorageserver.asp.