Crossroads Systems Receives Nasdaq Staff Determination.

High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 10, 2002

Crossroads Systems, Inc. (Nasdaq:CRDS), a global provider of storage networking solutions, received a Nasdaq Staff Determination on December 6, 2002 informing the company that it failed to comply with the $1.00 per share minimum bid price requirement for continued listing on the Nasdaq National Market as set forth in Marketplace Rule 4450(a)(5), and the company's common stock is, therefore, subject to delisting from the Nasdaq National Market. The minimum bid price requirement is the only Nasdaq listing requirement with which Crossroads is not in compliance.

Crossroads will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. According to Nasdaq procedures, the hearing date will be set, to the extent practicable, within 45 days of the request, and Crossroads will continue to trade on the Nasdaq National Market pending the panel's decision. If Crossroads is de-listed from the Nasdaq National Market, the company plans to apply for a listing on the Nasdaq SmallCap Market.

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems is a leading global provider for storage networking solutions. Crossroads' products are in solutions from leading companies such as Fujitsu-Siemens, Hewlett-Packard (which includes Compaq) and StorageTek, and are distributed through partners such as ARROW, Datalink and Tidal Wire. Crossroads is a voting member of the Storage Networking Industry Association (SNIA). 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 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 ability of Crossroads to remain listed on the Nasdaq National Market; 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. Crossroads expressly disclaims any obligation to release publicly any updates or revisions to 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.