Crossroads Systems Appoints Industry Visionary Allan Ignatin as Chief Technology Officer.

AUSTIN, Texas -- Crossroads Systems, Inc. (Pink Sheets:CRDS.PK):

--Allan Ignatin, Industry Veteran and Former CTO of TapeLabs, Transferring to CTO Role and Responsibilities at Crossroads Systems, Offers Years of Innovations, Leadership and Expertise

Crossroads Systems, Inc. (Pink Sheets:CRDS.PK), a leading provider of Business Information Assurance (BIA) solutions for guaranteed access, resiliency and security of enterprise information, today announced the appointment of Allan Ignatin, a highly recognized industry visionary and expert, as Chief Technology Officer.

"Upon recently acquiring Tape Laboratories (TapeLabs), Crossroads Systems recognized Mr. Ignatin's remarkable technical expertise and innovations track record as well as his striking technological leadership portfolio. We welcome Allan Ignatin to the Crossroads management team," said Rob Sims, President and CEO of Crossroads Systems. "In his new role as CTO, Allan will further link Crossroads and TapeLabs solutions together as well as sets the grounds for exciting new technological developments."

With more than 40 years of experience in data compression products, telecommunications and magnetic tape technologies, Ignatin stands as a significant addition to the Crossroads' team, bringing with him a history of continuous innovations and technological breadth. Mr. Ignatin assumes the role of CTO at a pivotal point in Crossroads' history. As Crossroads is expanding its technological offerings to meet Business Information Assurance market needs, Ignatin will lead Crossroads' efforts to expand upon its existing NearEdge suite of storage routing solutions. He will also research and develop new technologies for Crossroads two new suites of product offerings -- StrongBox solutions for enterprise information security and AssurStor for data resiliency.

"Crossroads not only offers powerful technologies, but also an inherent understanding of the need to develop new solutions in which business continuity, disaster recovery and information security are solidly architected as part of the initial solutions design," Ignatin said. "I'm extremely pleased to join Crossroads, as the company harnesses a strategic BIA vision that will transform industry offerings and meet customers' emerging accessibility, resiliency and security requirements."

About Tape Laboratories, Inc.

Tape Laboratories, Inc. (TapeLabs) is a 16-year-old, ISO-9001-certified company that has pioneered the delivery of full-featured tape backup, archive, recovery, and sophisticated emulation solutions to enterprise users, OEM's and system integrators. TapeLabs has a rich history and core competency of developing high value-add solutions including data compression, tape arrays, interface emulation, and disk-based virtual tape solutions. TapeLabs has been successful as a full-service developer and supplier of feature-rich storage solutions by utilizing the latest in SAN, NAS, iSCSI, SATA, RAID, Virtual Tape, and storage virtualization technologies. The company has a keen appreciation of user needs and the innate ability to effectively translate user requirements into compelling enterprise solutions for the HP NonStop(TM), Unix, Unisys, Linux, OS/400(TM) and Microsoft(TM) markets. For more information, please visit: www.tapelabs.com.

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems is a leading provider of Business Information Assurance solutions. Crossroads solves today's growing data storage, business continuity, disaster recovery and information security markets needs. Our solutions are designed to help companies store, manage and ensure the security, resiliency and accessibility of their data. Crossroads products are sold as part of packaged offerings 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. SecurDB and SPIE are trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.