Crossroads Systems Announces European Patent for Access Control Technology.

AUSTIN, Texas -- Crossroads Systems, Inc. (Pink Sheets:CRDS), a leading provider of Business Information Assurance (BIA) solutions for guaranteed access, resiliency and security of enterprise information, today announced that the European Patent Office has issued the company a Certificate of Grant for European application EP 1 044 414 B1. This European patent is the equivalent to Crossroads U.S. patent 5,941,972 covering storage routers and a method for providing virtual local storage and access control -- a security feature for preventing unauthorized host access to shared storage devices.

Crossroads currently holds five active international patents, 32 active U.S. patents and 52 patent applications in progress. Providing Crossroads industry presence with a more global stance, this latest European patent significantly expands Crossroads BIA reach beyond its current U.S. licensing agreements for its access control technology.

"This new European patent underscores Crossroads strong legacy of innovation in Business Information Assurance," said Rob Sims, President and CEO of Crossroads Systems. "Our access control technology is the foundation of secure data storage. We are pleased to extend this technology into Europe and other international markets, as it strengthens our clear leadership position within the market. Crossroads sees the European market as a vital piece of our expanding customer base."

"Crossroads commitment to its patent program reflects the company's desire to safeguard its intellectual property, expand its customer base and architect key security-focused solutions," said Steve Sprinkle, partner at Sprinkle IP Law Group and Crossroads IP attorney. "The resulting patent portfolio continues to contribute to Crossroads success through licensing revenue, establishing technology partnerships and reaching new security-focused clientele."

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems is a leading provider of Business Information Assurance (BIA) solutions. Crossroads solutions serve the growing data storage, business continuity, disaster recovery, information security and business information assurance markets and are designed to help companies store, manage and ensure the security, resiliency and accessibility of their data. Crossroads products are in solutions from companies such as EMC, HP, Quantum and SUN, and are distributed through partners such as ACAL, Bell Micro, Info-X and Promark. Crossroads (CRDS.PK) is currently traded on the Over The Counter ("OTC") Bulletin Board. Crossroads is a member of the Storage Networking Industry Association (SNIA). For more information about Crossroads Systems, please visit www.crossroads.com or call 800-BUY-CRDS / 800-643-7148.

Forward-Looking Statements

This release may include forward-looking statements. 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.

(C) 2006 Crossroads Systems, Inc. Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.