Crossroads Adds New Member to Board of Directors.

AUSTIN, Texas -- Crossroads Systems, Inc. (Nasdaq:CRDS), a leading provider of highly secure storage and data management solutions, today announced that Alan B. Howe has joined the Company's Board of Directors effective August 17, 2005. Mr. Howe will become a member of the Audit Committee of the Board of Directors, replacing Richard D. Eyestone who will resign from the Audit Committee but will still continue serving as a member of the Board of Directors.

"As a veteran of the networking industry, Mr. Howe brings seasoned insight to the Crossroads Board as we continue to expand our business by addressing both existing and emerging market opportunities," said Rob Sims, president and chief executive officer, Crossroads Systems. "Mr. Howe's strong financial background complements well with the assembled expertise on the Board."

Since May of 2005, Mr. Howe has served as vice president of wireless business development for Covad Communications Group, Inc., a public provider of integrated voice and data communications. From 2004 to May 2005, Mr. Howe served as the managing partner of Broadband Initiatives LLC, a privately held company that assesses and develops broadband access strategies and network implementation. From April 2001 to December 2003, Mr. Howe served as a partner at Viseon Partners, a private corporate advisory and M&A firm. From April 1995 to April 2001, Mr. Howe served as the vice president of finance and corporate development and chief financial officer of Teletrac, Inc., a mobile data and vocation solutions for metropolitan mobile workforces company, which is now a private wholly-owned subsidiary of Trafficmaster, PLC. From December 1991 to April 1995, Mr. Howe worked in several positions with Sprint Corporation, including as director of corporate development at WirelessCo., L.P. Mr. Howe holds a B.S. in Business Administration and Marketing from the University of Illinois, and an MBA in Finance from Indiana University.

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is a leading global provider of highly secure storage and data management solutions. Crossroads' solutions serve the growing data storage and data management 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, and Promark. Crossroads is a voting member of the Storage Networking Industry Association (SNIA). 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 those detailed in Crossroads' filings with the Securities Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Crossroads expressly disclaims any obligation to release publicly any updates or revisions to the information contained in this press release, 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.