FalconStor Teams with IntelliStorage and I-Tech to Provide New Business Protection and Disaster Recovery Services for Small and Medium-Sized Business in the Netherlands

FalconStor Software Inc. (NASDAQ: FALC), the market leader in disk-based data protection solutions, today announced that its award-winning FalconStor® IPStor® technology has been chosen by IntelliStorage and I-Tech, to power Continuity Solutions B.V., their newly formed joint-venture, whose aim is to provide data protection services targeting both Enterprise and small and medium-sized businesses (SMB) in The Netherlands. This collaboration represents another milestone in the long-standing partnership between FalconStor and IntelliStorage since 2004. By incorporating FalconStor technologies into Continuity Center™, its SLA delivery platform, Continuity Solutions will automate delivery of its broadband, virtual server and storage infrastructure services, branded under the ‘Flexi’ and ‘Sure’ service marks. FalconStor Continuous Data Protection (CDP) solutions enable the rollout of subscription-based server infrastructure, data protection and disaster recovery services. Continuity Solutions will team with FalconStor to offer a series of turnkey CDP Appliances, to help Enterprise and SMB organizations protect their business-critical data locally as well as replicating them to a Continuity Solutions’ disaster recovery site over a broadband network. "SMB often cannot address the issue of business continuity due to either cost or complexity, and today's announcement offers them a practical affordable solution that brings enterprise functionality within their reach,” said Phillip Hyde, CEO, IntelliStorage. "Not only with local backup, but also with remote disaster recovery, the partnership with FalconStor enhances our goal to become an all-around DR solution service provider, and represents a win-win situation for protecting customer data.” The business model provides customers with integrated instant calamity planning at both the server and data levels - each customer can be equipped with either FalconStor DiskSafe™ or FileSafe™ software for their local machines to drive fast backup to a CDP Appliance located at their site, and pre-loaded with FalconStor storage software. Data is remotely replicated by the CDP Appliance to one of the two Continuity Solutions’ mission critical facilities keeping local and remote DR data, without any impact to a business´ production environment. For its mission critical SLA’s Continuity Solutions can also provide automatic virtual server failover, seamlessly integrated to the data protection SLA. The DR Solution provided by Continuity Solutions relieves the customer from the tediousness of backup operations, with data recovery occurring far more easily and smoothly compared to a traditional DR system. "It is paramount for organizations of all sizes to realize the need to address the issue of disaster recovery and business continuity by having a remote set of data on standby,” said Wim Brosens, Sales Manager BeNeLux, FalconStor. "With the cost and manual labor factors for SMB mitigated by today’s news with Continuity Solutions, the data protection functionality available for enterprises is now very feasible for most SMB in The Netherlands.” FalconStor and Continuity Solutions will present the solution at Storage Expo Holland, Utrecht, October 31-November 1 on booth 9C030. About FalconStor FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. We deliver proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. Our technology-independent solutions, built upon the award-winning IPStor® virtualization platform, include the industry leading VirtualTape Library (VTL) with Single Instance Repository (SIR) for de-duplication, Continuous Data Protection (CDP), Storage Virtualization, and Replication for disaster recovery and remote office protection. Our products are available from major OEMs and solution providers including EMC, SUN, Brocade, H3C, and COPAN and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises. FalconStor is headquartered in Melville, New York, 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 or call 1-866-NOW-FALC (866-669-3252). About IntelliStorage IntelliStorage, founded in 2001, develops and delivers complete solutions to Manage the Complexity of Data Storage™. Its storage service-centric approach addresses the unique storage infrastructure, data management and data protection issues faced by large corporate enterprises, the SME segment and Internet-based businesses, including cost-effective data management, continuous availability, disaster recovery, storage consolidation, centralized backup/restore, content delivery, and rapid growth. IntelliStorage leverages its strategic partnerships with leading storage infrastructure product vendors to provide its customers with integrated best-of-breed in-house solutions and outsourced solutions from our data center on SLA basis. These are complemented by IntelliStorage’s storage SLA management methodology. With this top-down approach companies can highly automate their data and storage management processes, guaranteeing availability. IntelliStorage Solutions B.V. headquartered in Naarden, the Netherlands, is active in various European countries. About I-Tech I-Tech, founded in 1999, provides Virtual Datacenter Services to Internet Service Providers (ISP’s) and Application Service Providers (ASP’s) since 2005. With extensive experience in infrastructure design and optimization I-Tech offers a fully virtualized infrastructure, hosted in two AAA-class data centers in The Netherlands (KPN CyberCenter at Schiphol-Airport, and KPN DC2 in Amsterdam) From these two data centers I-Tech provides ‘capacity on demand’ for mission critical hosting or disaster recovery of business critical applications. I-Tech became the first Dutch ‘VMware Authorized Hosting Center’ in early 2007. For more information on I-Tech please visit www.i-tech.nl or contact us at info@i-tech.nl / +31(0)20 600 8137 FalconStor, FalconStor Software, IPStor, DiskSafe and FileSafe are trademarks or registered trademarks of FalconStor Software, Inc. All other company and product names contained herein may be trademarks of the respective holders.