Crossroads Systems Promotes Three Vice Presidents; Crossroads Taps Internal Talent Pool in Continued Commitment to Developing Leaders.

Business Editors and High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--May 23, 2001

Crossroads Systems Inc. (Nasdaq:CRDS), a global provider of connectivity for storage networking solutions, today filled three key executive positions in a move designed to simplify the management structure and provide clearer accountability.

Richard Lautzenheiser has been promoted to vice president of marketing. Rob Sims, vice president of operations and quality assumes leadership of engineering as well. Patricia Prince, vice president and general counsel, adds corporate communications to her responsibilities.

"We are fortunate to have the quality and depth of talent to promote leaders from within our organization. Their combined backgrounds and extensive industry experience is invaluable," said Larry Sanders, Crossroads president and chief operating officer. "For the last year, Crossroads has emphasized the development of leaders, not just managers, within the organization. These promotions are indicative of our progress."

Lautzenheiser, who has been with Crossroads for a year, has more than 13 years of strategic marketing, storage and I/O industry experience with companies such as Hewlett-Packard, Agilent Technologies, Symbios Logic and ASIC. He holds a BSEE from the University of Cincinnati, and an MBA from the University of Colorado.

Sims has been with Crossroads for two years and draws on more than 12 years of experience in engineering, design, development and manufacturing of computer peripherals for companies such as Exabyte and Kentek Corp. Sims holds a bachelor's in electrical engineering from Colorado State University.

Prince joined Crossroads in 1999 and was the former general counsel for Dazel Corp. (which was acquired by Hewlett Packard in 1999), and for Tadpole Technology. She holds a license to practice law in New York and Connecticut and holds a bachelor's degree from Indiana University and a J.D. from Pace University.

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, 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 impact on Crossroads' results or operations due to changes in the Securities and Exchange Commission's accounting standards, including the implementation of SAB 101 with respect to revenue recognition; 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 Compaq Computer Corporation; 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.