BluePoint Data Signs Managed Services Contract in Excess of $10 Million and Provides CMS Acquisition Update.

BOCA RATON, Fla. -- BluePoint Data Storage, Inc. ("BLP" or the "Company") (TSX VENTURE:BLP), an established provider of managed storage, availability and data protection services, announces the signing of a managed services contract in excess of US$10M over a seven (7) year term to provide 24 X 7 server management, primary data storage capacity, and data protection (back-up) services in partnership with IBM Global Services (IGS). The full implementation is scheduled to begin in January and completed by April 2007.

Initial design, planning, and set-up work has already begun in July 2006, but average annual billings in excess of US$1,500,000 won't begin until fully implemented in the first quarter of 2007. The exact timing will greatly depend on the end-user customer's ability to migrate to BluePoint's datacenter facility. More specific details of the deal remain undisclosed, but the Company expects its normal margins with high level of customer satisfaction once fully-implemented. As of today, this contract represents BluePoint's largest single customer currently being serviced under its various partnerships with IBM.

Champion Managed Services Acquisition Update

BluePoint continues to move forward with the acquisition of Champion Managed Services, Inc. (CMS) as described in the press release dated June 30, 2006. The Company is in the process of obtaining all necessary approvals from the TSX Venture Exchange, CMS business partners, and CMS vendors. As of the date of this press release, Management estimates the deal will close with TSX Approval in early August 2006.

Investors are cautioned that, except as disclosed in the disclosure document prepared in connection with the transaction, any information released or received with respect to this proposed acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of BLP should be considered highly speculative. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

About BluePoint Data Storage

BLP delivers managed data protection, system availability and recovery solutions that ensure the protection and availability of corporate data and information technology systems while reducing the total cost of ownership. BLP manages these systems with unparalleled expertise, guarantees high performance and availability, and ensures systems are on par with the current state-of-the-art.

Safe Harbor 

This release may contain forward-looking statements that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, demographic changes, regulation, major technology changes, the timing of product introductions, competition, and the ability of the Company to attract and retain key employees.