STORDIS and FalconStor Partner to Create an InfiniBand-based Storage Appliance for HPC Market

BOOTH 705, INTERNATIONAL SUPERCOMPUTING CONFERENCE, HAMBURG, GERMANY, June 23, 2009
FalconStor Software, Inc. (Nasdaq: FALC), the provider of TOTALLY Open™ data protection solutions, and STORDIS GmbH, the European distributor for high performance computing, headquartered in Stuttgart, Germany, today announced a partnership to create an InfiniBand-based storage appliance for the high performance computing market. The appliance, running FalconStor® Network Storage Server (NSS), will be demonstrated for the first time in STORDIS and FalconStor's shared booth at the International Supercomputing Conference (ISC), Europe's leading conference and exhibition for high performance computing, networking and storage.

The new appliance is based on high quality InfiniBand Director switches, which enable high performance applications to run on distributed server, storage and network resources. Multiple Director switches can be interconnected to form very large, high-performance clusters and grids that can grow into the thousands of nodes with "pay as you grow" scalability and bandwidth. Customers can leverage FalconStor NSS with these clusters and grids to implement an ultra-high performance storage network with storage virtualization, provisioning and management across multiple disk arrays, operating at speeds far in excess of anything achievable with Fibre Channel, and at significantly lower costs.

"FalconStor solutions in conjunction with InfiniBand-based switching can reduce the overall complexities and costs associated with a dynamic storage environment, providing customers with new levels of performance at a price point they might have believed it impossible to make," said Guillaume Imberti, FalconStor president and general manager EMEA Operations.

"We expect this innovative combination to be very attractive to our mutual customers, many of whom demand the fastest possible performance from their storage environments in order to give themselves the greatest possible competitive advantage in their own business sector," said Alexander Jeffries, managing director of STORDIS.

About FalconStor NSS
FalconStor Network Storage Server (NSS) delivers TOTALLY Open™ SAN storage virtualization, provisioning, and heterogeneous storage management that works across disk vendor and storage protocol boundaries to optimize storage utilization, reduce costs, and increase IT productivity in enterprise organizations.

About STORDIS GmbH
STORDIS, headquartered in Stuttgart, Germany, is the European Distributor for High Performance Computing (HPC) with focus on High Performance Networking and Storage solutions. Our HPC and Storage portfolio includes InfiniBand, 10Gbit Ethernet, Fibre Channel, HPC storage, general purpose storage and storage virtualization products. Additional to our product portfolio, we are providing a wide range of high quality pre- and post-sales services and support options.

About FalconStor Software
FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. FalconStor delivers proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. The Company's TOTALLY Open™ technology solutions, built upon the award-winning IPStor® platform, include the industry leading Virtual Tape Library (VTL) with deduplication, Continuous Data Protector (CDP), File-interface Deduplication System (FDS) and Network Storage Server (NSS), each enabled with WAN-optimized replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including 3Com, Acer, COPAN Systems, Data Direct Networks, Dynamic Solutions International, EMC, IBM, Pillar Data Systems, Spectra Logic and Sun and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises.

FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit http://www.falconstor.com/ or call 1-866-NOW-FALC (1-866-669-3252).

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FalconStor and IPStor are registered trademarks, and TOTALLY Open is a trademark of FalconStor Software, Inc. in the US and other countries. All other company and product names contained herein may be trademarks of their respective holders.

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