Crossroads Systems Announces High-Bandwidth Mainframe Link for HP Servers.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 24, 2001

Crossroads to Provide Direct ESCON Connectivity for HP Servers to

IBM and Compatible Mainframes

Crossroads Systems Inc., (Nasdaq:CRDS), a leading provider of interoperable storage networking solutions, today announced support for Hewlett-Packard Company servers requiring direct channel-based connections to mainframe systems.

The Crossroads' 6950 PCI to ESCON Channel Interface uses IBM's proprietary Enterprise System Connection or ESCON to directly tie open system servers to IBM and compatible mainframe computers.

The Crossroads 6950 PCI to ESCON Channel Interface hardware is available now. Software support for the HP-UX operating system will be released in September and includes software for TCP/IP applications and high-speed data movement. The products will be available from Crossroads to HP customers, resellers and VARs. Support will initially be available on HP 9000 L-class and N-class servers followed by support on HP Superdome servers. Crossroads ESCON products are already available for HP Netserver servers.

Typical uses for direct server to mainframe connections are LAN-free data movement in data warehousing, data relocation and backup and restore operations. "Moving large volumes of data efficiently means minimizing the impact on transactional systems and LAN-based users," said Peter La Porte, director of product marketing, ESCON products at Crossroads Systems Inc. "As a direct, fiber optic connection between a mainframe and HP's high-end servers, ESCON makes a great deal of sense for these applications. We're very pleased to work with HP to offer their customers a way to move large amounts of data quickly and without overloading their network."

"Many of our customers require high-speed connectivity to their existing mainframe systems," said Vish Mulchand, product line manager, HP Business Systems and Technology Organization. "The Crossroads offering provides excellent connectivity choices for our customers."

More information about the Crossroads 6950 PCI to ESCON Channel Interface is available at the Crossroads booth (No. 964) at HP World.

About Crossroads Systems Inc.

With headquarters in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is a leading global provider of connectivity for storage networks regardless of technology or location. Crossroads enables protocol-independent connectivity at gigabit speeds for a wide range of devices that scale for small businesses to global enterprises. Crossroads' products are in solutions from ADIC, ATL, Compaq, Dell, Fujitsu Siemens, Groupe Bull, Hewlett-Packard, Hitachi Data Systems, IBM, McDATA, StorageTek, Sun Microsystems, Unisys, ACAL, Bell Micro, Cranel/Adexis, Datalink and Tech Data. Crossroads is a voting member of the Storage Networking Industry Association (SNIA). For employment opportunities and more information about Crossroads Systems, please visit www.crossroads.com or call 800/643-7148.

Forward-Looking Statements

This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: the quarterly fluctuations of Crossroads' operating results and Crossroads' inability to accurately predict revenues and budget for expenses for future periods; the extent of Crossroads' future operating losses and negative cash flow; the company's ability to maintain its operating margins; the deteriorating economic environment, including in particular related expense reductions by organizations affecting their IT spending and budget; the dependence of Crossroads' business on the storage area network market which is evolving and unpredictable; the possibility that the pending shareholder class action lawsuits could result in an adverse outcome to the company; Crossroads' ability to develop new and enhanced products that achieve market acceptance; the effect of competition; the effect of undetected software or hardware errors, which may affect the company's results or reduce demand for Crossroads' products in the long term; Crossroads' inability to protect its intellectual property rights, including any adverse outcome in the company's pending patent litigation with certain of its competitors; the continuation of Crossroads' successful relationships with its limited number of OEM customers, including its ability to replace revenue from ADIC and Compaq Computer Corporation and/or to realize the benefit of the new agreement with Compaq; Crossroads' ability to retain and recruit key personnel to manage its business successfully; Crossroads' ability to successfully achieve the benefits of the acquisition of Polaris Communications and any subsequent acquisition or strategic relationship; and that Crossroads' stock price could be volatile regardless of Crossroads' actual financial performance and 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.