Crossroads Systems Releases Additional Information Regarding Acquisition of Tape Laboratories.AUSTIN, Texas -- Crossroads Systems, Inc. (Pink Sheets:CRDS CRDS Contribution pour Le Remboursement de la Dette Sociale (French: Social Debt Repayment Contribution) CRDS Cavity Ring-Down Spectroscopy CRDS Community Rehabilitation and Disability Studies ), a leading provider of business information assurance solutions for secure storage and data management, today provided additional information about its acquisition of Tape Laboratories (TapeLabs), which it announced on April 12, 2006. On April 11, 2006, Crossroads Systems, Inc. (Crossroads) closed the purchase of 100% of the shares of TapeLabs. In return, the shareholders of TapeLabs received one million shares of Crossroads' common stock in addition to a cash payment at closing of approximately $2.4 million and the payment by Crossroads of approximately $2.2 million of TapeLabs' debt. TapeLabs' shareholders may be entitled to an additional payment upon verification of TapeLabs' financial information as of the closing date. TapeLabs' shareholders may also be entitled to certain contingent payments based upon the sale of TapeLabs' products up to a period of two years after the closing date. Since 1990, TapeLabs has pioneered the delivery of full-featured tape backup Using magnetic tape for storing duplicate copies of hard disk files. Users can add an internal or external tape drive to their desktop computers for backup purposes, and files are typically copied to the tapes using a backup utility that updates on a periodic schedule. , archive and recovery, and sophisticated emulation solutions to enterprise users, OEMs and system integrators. Based on unaudited financial information obtained by Crossroads in connection with its evaluation of the acquisition, TapeLabs had revenues of approximately $5.9 million and a net profit of approximately $1.2 million for the year ended December 31, 2005. Additional details on Crossroads acquisition of TapeLabs can be found in the initial acquisition press release at: http://www.crossroads.com/Company/PressRoom/PressReleases.asp?id=277 as well as on our strategic acquisition page at: http://www.crossroads.com/Company/Acquisitions.asp. About Crossroads Systems, Inc. With headquarters in Austin, Texas, Crossroads Systems, Inc. is a leading provider of Business Information Assurance 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 (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. , HP, Quantum and SUN, and are distributed through partners such as ACAL ACAL Asociación de Archiveros de Castilla Y León (Castille and Leon, Spain) ACAL Academia de Ciencias de América Latina (Spanish: Academy of Sciences of Latin America, Venezuela) , Bell Micro, Info-X, and Promark. Crossroads (CRDS.PK) is currently traded on the Over The Counter ("OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ") Bulletin Board. Crossroads is a member of the Storage Networking Industry Association An association of producers and consumers of storage networking products, whose goal is to further storage networking technology and applications. The Storage Networking Industry Association, or SNIA (SNIA (Storage Networking Industry Association, San Francisco, CA, www.snia.org) An organization devoted to the advancement of mission critical storage systems. Founded in 1997, its goal is to determine the standards that must be developed to allow hosts and storage systems to interact via ). For more information about Crossroads Systems, please visit www.crossroads.com or call 800-BUY-CRDS / 800-643-7148. About Tape Laboratories, Inc. Tape Laboratories, Inc. (TapeLabs) is a 16-year-old, ISO- iso- or is- pref. 1. Equal; uniform: isobar. 2. Isomeric: isopropyl. 3. 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 (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular , iSCSI, SATA (Serial ATA) A serial version of the ATA (IDE) interface, which has been the de facto standard hard disk interface for desktop PCs for more than two decades. The original Parallel ATA (PATA) interface was launched in 1986. , RAID, Virtual Tape, and storage virtualization technologies. TapeLabs 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. Forward-Looking Statements Statements that Crossroads Systems, Inc. may publish, including those in this announcement that are not strictly historical, are "forward-looking" statements made under the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. 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. Crossroads undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. |
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