Crossroads Demonstrates Planned iSCSI Products at Storage Networking World.

AUSTIN, Texas -- Showcase Of Storage Pooling, Volume Provisioning, Snapshot and Data Replication Capabilities

Crossroads Systems(R) Inc. (Nasdaq:CRDS), a leading global provider for storage networking solutions, today announced it will be demonstrating planned iSCSI products at Storage Networking World (SNW), October 26-27, 2004, at the JW Marriott Grande Lakes Resort in Orlando, Fla.

Crossroads will demonstrate two planned offerings for its recently announced Network Storage Controller (NSC) product family. The planned NSC offerings will provide versatile, high performance, low latency solutions across IT networks for improvement in the utilization and management of storage and database resources.

In one demonstration, a planned NSC appliance will provide flexible provisioning of Fibre Channel SAN services to IP-based servers running Microsoft Exchange and SQL. The demonstration will feature allocation of access to highly scalable SAN storage and advanced storage management features to include storage pooling, volume provisioning, snapshot and advanced data replication capabilities.

Utilizing a clustered architecture to provision economical bandwidth and scalable capacity, the NSC appliance is being designed to enable enterprise data centers for the delivery of enhanced data protection management across the organization. The appliance will promote centralized management at the data center level while enabling individual departments and workgroups to retain autonomy of local storage management.

In a second demonstration, a planned NSC data mover appliance will perform server-free data movement operations over a Fibre Channel network in conjunction with a backup application utilizing the SCSI Extended Copy command. This capability off-loads data movement tasks from the server to an NSC data mover appliance, freeing up valuable CPU resources on the server. Access Controls will also be featured to demonstrate secure sharing of storage resources across multiple servers.

In addition to demonstrating its planned NSC offerings, Crossroads will also demonstrate its latest iSCSI storage routing technology for data backup from a Windows 2003 server to SCSI-based tape storage -- a solution being designed to augment the company's current FC-based storage routing products. This demo also showcases the simplicity and ease of management possible in an iSCSI SAN by utilizing the built-in backup features of the Windows operating system to perform reliable backup processes.

All the planned products and technologies demonstrated by Crossroads represent a continuation of the company's overall strategy to maximize storage resource understanding, utilization and management, and to enable IT managers to build out networks of consolidated storage assets with improved performance, security, and reliability without sacrificing scalability. For more information about Crossroads products and the technologies being demonstrated at SNW, please visit the Crossroads booth C13.

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 Crossroads' existing customers of any new products; the effect of competition; Crossroads' ability to develop new and enhanced products that achieve market acceptance; the continuation of Crossroads' successful relationships with its limited number of OEM customers; Crossroads' ability to protect its intellectual property rights, 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.