Crossroads Acquires Application Acceleration and Monitoring Technology; Purchase of Teracruz, Inc. Assets to Complement Crossroads Product Strategy.

AUSTIN, Texas -- Crossroads Systems(R) Inc. (NASDAQ:CRDS), a leading global provider for storage networking solutions, today announced that is has purchased substantially all of the assets of Teracruz, Inc., a privately held company located in Huntsville, Alabama.

"The acquisition of Teracruz's technology represents a key component to Crossroads' continued execution of bringing focused, purpose-driven solutions for intelligent management of IT resources," said Rob Sims, president and CEO, Crossroads Systems. "Teracruz has developed a plug and play enterprise solution providing comprehensive monitoring for data access and acceleration capabilities resulting in significant improvements in application performance."

The suite of enabling technologies and solutions acquired by Crossroads include:

--Performance Monitoring - Comprehensive database and application performance management with no server overhead;

--Teraview Graphical User Interface - A single, feature-rich console application that enables full control of Teracruz appliance products and provides a wide variety of performance analysis reports;

--Service Manager - Service level monitoring that provides full management of application and database service levels, enabling IT administrators to define and proactively monitor critical performance metrics, and receive real-time email and pager alerts when thresholds are exceeded; and

--Application Acceleration -Technology that provides dramatic application response time improvements, reducing demand on database servers.

"We are very excited about Crossroads' acquisition of Teracruz's technology and feel that the combination with Crossroads' market presence will lead to greater business opportunities," stated David Deaton, president and CEO, Teracruz. "The Teracruz appliance should fit nicely into Crossroads' overall product strategy for improved management and utilization of storage and data resources."

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is a leading global provider of data routing solutions for Storage Area Networks (SANs). Crossroads' solutions serve the growing storage connectivity and data storage markets, and are designed to help companies store, manage and ensure the integrity and availability of their data. Crossroads' products are in solutions from companies such as EMC, HP and StorageTek, and are distributed through partners such as ACAL, Bell Micro, DLT Solutions, Info-X, Promark, and TidalWire. Crossroads is a voting member of the Storage Networking Industry Association (SNIA) in both the United States and Europe. For more information about Crossroads Systems, please visit www.crossroads.com or call 800-643-7148.

Forward-Looking Statements

This release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Crossroads are intended to identify such forward-looking statements. These statements reflect the current views and assumptions of Crossroads, and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the acceptance by customers of the Teracruz products to be developed and sold by Crossroads and/or any new products developed with the Teracruz technology; the ability to successfully integrate the Teracruz assets and employees with Crossroads; the failure, for any other reason, to recognize the benefits of the proposed asset acquisition, including as a result of the early stage and unproven nature of Teracruz's products and technology; the potential effect of unforeseen liabilities Crossroads may acquire in connection with the Teracruz assets, including alleged infringement of other persons' intellectual property; the effect of competition; Crossroads' ability to develop new and enhanced products utilizing Teracruz technology that achieve market acceptance; the continuation of Crossroads' successful relationships with its limited number of OEM customers, and the willingness of such OEM's to accept products based on Teracruz technology; as well as other factors detailed in Crossroads' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Crossroads expressly disclaims any obligation to release publicly any updates or revisions to the information contained in this press release or with respect to any future distribution of its stock by investors, or to update or revise any forward-looking statements to reflect any changes in expectations, or any change in events or circumstances on which those statements are based, unless otherwise required by law.