FalconStor® FDS Version 2.0 Delivers Enterprise-Class High Availability Plus Double the Performance with Symantec OST Support

Nexsan First FalconStor Technology Partner to Incorporate FalconStor FDS 2.0 into its Storage Systems

MELVILLE, N.Y., January, 2010 - FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY Open™ data protection solutions, today announced version 2.0 of FalconStor® File-interface Deduplication System (FDS), which takes LAN-based deduplication to the next level of enterprise-class functionality with high availability and other enterprise capabilities. Nexsan is the first FalconStor technology partner to incorporate FalconStor FDS 2.0 into its storage offering in the Nexsan DeDupe SG 2.0 family of deduplication appliances.

FalconStor FDS is designed for both small-to-medium-size businesses and large enterprises looking to reduce storage space and costs by writing backup data more efficiently to disk. With the addition of high availability, enterprises of all sizes will retain access to their backed-up data, ensuring that backups of critical systems can always be completed within narrow backup windows - which is especially important for databases that may run a company's ERP, CRM or other important applications. Other enterprise-class features in FDS 2.0 include:

Support for Symantec OpenStorage (OST) delivers 5.4 terabytes per hour of backup data throughput, ingest rates of 1.5 gigabytes per second over two 10 Gigabit Ethernet links for double the performance.

An increased fan-in ratio of 150-to-1 that supports more distributed environments and enhances the scope of global deduplication.

An enhanced replication dashboard for real-time status monitoring.

More granular, folder level, replication support.

Policy driven end-to-end data integrity checking

Collision avoidance that ensures data consistency and prevents data loss.

"The release of Nexsan DeDupe SG 2.0, which integrates the advanced enterprise-class capabilities of FalconStor FDS 2.0, underscores our commitment to offering market-leading deduplication solutions," said Bob Woolery, senior vice president of marketing for Nexsan. "Today's organizations require cost-effective solutions for high availability and continuous data access; the Nexsan DeDupe SG 2.0 meets these requirements while providing the optimized performance and efficiency enterprises of all sizes demand."

"With this significant enhancement to FalconStor FDS, FalconStor now leads the market in features, scalability and performance in enterprise-class deduplication solutions for data centers," said Fadi Albatal, vice president of product marketing for FalconStor. "The market has been demanding a high-availability dedupe solution for NAS-based disk-to-disk backup environments, and we are the first to deliver."

Pricing and Availability

FalconStor FDS 2.0 will be generally available at the end of February through FalconStor's worldwide network of channel partners. The Nexsan DeDupe SG 2.0 family of deduplication appliances will be available at the end of February through Nexsan's worldwide channel partner network.

FalconStor FDS offers block-level deduplication of backup data via a simple file interface. FalconStor FDS extends the company's highly scalable data deduplication technology - already widespread as part of the industry-leading FalconStor® Virtual Tape Library (VTL) solution - to network-attached storage (NAS) disk-to-disk backup environments. With built-in many-to-one replication capability, the file-interface system provides global deduplication by replicating from remote sites to a central data repository across the wide-area network.

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, 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 www.falconstor.com.