STORAGETEK AND FALCONSTOR BOOST STRATEGIC RELATIONSHIP WITH GLOBAL AGREEMENT COVERING RESELLER, PRODUCT DEVELOPMENT, OEM, AND SERVICES

StorageTek and FalconStor Software, Inc. have forged a strategic alliance covering reseller, product and service offerings for disk replication and mirroring.

The global alliance provides a storage area network foundation for business continuity and disaster recovery, and builds upon existing interoperability agreements.

The three components include:

Reseller Agreement: The Global Reseller agreement enables StorageTek to sell the IPStor® suite of products from FalconStor. IPStor software delivers an open, intelligent SAN infrastructure across heterogeneous environments by providing a comprehensive set of storage services for enterprise applications, simplifying management, consolidating storage, ensuring high data availability and recoverability, and maximising performance.

Product Development and OEM Agreement: The agreement initially calls for the two companies to partner in developing a StorageTek-branded heterogeneous replication and mirroring appliance. This appliance will allow the integration of StorageTek's broad disk portfolio into the customer's existing infrastructure.

Professional Services Agreement: The Professional Services agreement enables the StorageTek Professional Services team to leverage IPStor software to undertake enterprise data migration projects.

"Customers are increasingly looking for easy to deploy solutions to address their data replication and migration needs in complex environments," noted Randy Kerns, Senior Partner, Evaluator Group. "This alliance with FalconStor will allow StorageTek to bring some compelling storage networking solutions and services to the market."

"This series of agreements advances the relationship between StorageTek and FalconStor and opens the door for further product development," noted Pierre Cousin, StorageTek vice president and general manager, Online Solutions. "This alignment is consistent with our Information Lifecycle Management (ILM) strategy, which enables enterprises to understand and quantify the value of information as it migrates along its lifecycle from creation to deletion in order to optimise the storage infrastructure. FalconStor products are emerging to play a key role in this strategy."

"The joint development arrangement will allow us to leverage each other's engineering talent to create innovative products with compelling TCO and ROI characteristics," said Bernie Wu, FalconStor vice president of Business Development. "The strategic partnership with StorageTek clearly demonstrates our mutual commitment to delivering superior business continuity solutions."

About FalconStor: FalconStor Software, Inc. (Nasdaq: FALC), is a leading developer of network storage infrastructure software solutions designed to optimise the performance and availability of today's complex IT infrastructures. Deployed by a wide range of Fortune 1000 enterprises, FalconStor's flagship product, IPStor® software, optimises storage utilisation, accelerates backup and recovery, maximises I/O performance and ensures business continuity via sophisticated data replication services. It is available and supported through major OEMs, system integrators and resellers worldwide.

Founded in 2000, FalconStor is headquartered in Melville, NY, with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Technical Support Alliance Network (TSANet), Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA).

About StorageTek: StorageTek (NYSE:STK), a $2 billion worldwide company with headquarters in Louisville, Colo., delivers a broad range of storage solutions that are easy to manage, integrate well with existing infrastructures and allow universal access to data across servers, media types and networks. StorageTek provides practical and safe storage solutions in disk, networking, services, tape and tape automation.

TRADEMARKS: StorageTek is a registered trademark of Storage Technology Corp. FalconStor Software and IPStor are registered trademarks of FalconStor Software, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

This press release includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include: delays in product development; market acceptance of StorageTek and FalconStor's products and services; technological change in the storage and networking industries; competition in the storage networking software market; the ability to achieve profitability; intellectual property issues; and other risk factors discussed in the companies reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission.

Media contacts
StorageTek:
Ken Saunders / Kirsty Whitehead,
Hill & Knowlton,
tel +44 20 7413 3000

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