Business/High Tech Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 1, 2001

IPStor Also Being Certified for Microsoft Windows 2000

Datacenter Server

FalconStor Software, Inc. (Nasdaq:FALC), a leading storage networking infrastructure software company, today launched IPStor(TM)Exchange Snapshot Agent at MEC 2001, the Microsoft infrastructure planning and deployment conference in Orlando, Fla., from Sept. 30-Oct. 4, at the Orange County Convention Center.

FalconStor will be demonstrating IPStor's business continuity features at booth No. 740, for large and medium enterprises that share the need for data center consolidation, 24x7 operation, reduced total cost of ownership and advanced data management services. The IPStor Exchange Snapshot agent provides continuous protection of Exchange databases while in use, with complete data and transactional integrity. A robust and automated process safely and reliably takes snapshots of Exchange databases for point-in-time, Zero-Impact backup and remote replication.

The enterprise class storage services of IPStor, including storage virtualization, active-active failover, capacity-on-demand, remote replication, mirroring, application-aware snapshot, and zero-impact backup/restore enablers, allow a data center to maintain non-stop operations by eliminating the chronic problems such as running out of space, inability to perform reliable backup without shutting down, vulnerability to single-point-of-failure, and inadequate remote disaster recovery protection.

"We recognize that Exchange 2000 is a very important part of enterprise data centers," said ReiJane Huai, President and CEO of FalconStor. "Businesses are exploring ways to manage the growing abundance of mission critical data, and the challenges of maintaining data availability is an industry-wide concern. IPStor's high available, no-single-point-of-failure storage infrastructure, together with a rich set of storage services that eliminates the management pains in the data centers, make it a compelling tool for the Exchange administrators."

IPStor, currently being certified for Microsoft Windows 2000 Datacenter Server, enables enterprises to manage their growing messaging and collaboration infrastructure, while embracing a host of other Microsoft technologies on which Exchange customers are building robust solutions. IPStor also addresses the storage needs of large enterprises that face the diverse demands from multiple, dispersed departments, supporting many remote locations with data security and guaranteed data availability.

MEC 2001 offers in-depth technical training for planning, deploying, and managing enterprise infrastructures to help businesses gain a competitive advantage in a constantly changing digital world. The conference enables industry experts and peers to discuss best practices for deploying Exchange 2000 and Active Directory, extending the platform with Office XP, Microsoft's Mobility solutions and SharePoint Portal Server, and integrating Exchange 2000 with the other .NET Enterprise Servers.

About FalconStor

FalconStor Software, Inc. (Nasdaq:FALC), is a company founded with the mission to help enterprises rise above ever-expanding storage complexities and costs by providing the first software-only storage networking solution that simplifies storage management while drastically reducing total cost of ownership. With an unprecedented combination of manageability, performance, security, and flexibility, FalconStor's flagship product, IPStor(TM), transcends the limitations that have historically confined SANs to local data centers.

Founded in 2000, FalconStor is headquartered in Melville, NY. International offices include Paris, France; Taichung, Taiwan; and Tokyo, Japan. FalconStor is a voting member of the Storage Networking Industry Association (SNIA). For more information, visit www.falconstor.com or call 631/777-5188.

With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include: the early stage of FalconStor's business; potential delays in product development by FalconStor; market acceptance of FalconStor's products and services; rapid technological change in the storage and networking industries; competition in the storage networking software market; the ability to achieve profitability; potential issues involving intellectual property and other disputes; 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.

Copyright (c) 2001 by FalconStor. FalconStor and IPStor are trademarks of FalconStor Software, Inc. All other company and product names contained herein are trademarks of the respective holders.