Crossroads Systems Unveils Internet SCSI, iSCSI, for Storage Networking; Industry-Leading Interoperability Exemplified by Crossroads, Intel, Microsoft and StorageTek.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 18, 2001

Crossroads Systems Inc. (Nasdaq:CRDS), a global provider of connectivity for storage networking solutions, today announced it will demonstrate iSCSI storage routing at Storage Networking World, Oct. 22-24, 2001 in Orlando, Fla.

The demonstration showcases the combined technology and interoperability of Crossroads, Intel, Microsoft and StorageTek.

"We are pleased to extend Crossroads' leadership in multi-protocol connectivity to iSCSI," said Larry Sanders, president and chief operating officer, Crossroads Systems. "As a leader in storage routing, Crossroads is partnering with other technology leaders to show our commitment to the interoperability and stability vital to making iSCSI a successful interconnect for storage networking."

Using a Microsoft host, the Crossroads router performs data movement or data backup over gigabit Ethernet using the iSCSI protocol. The Crossroads iSCSI demonstration showcases how customers can protect their data using iSCSI storage networks. This demonstration connects the Crossroads iSCSI storage router, the Intel PRO/1000 T IP Storage Adapter, StorageTek L40 tape library and a server running Microsoft Windows .Net Server Beta and Windows 2000 Professional.

Microsoft, with its Windows Server platforms, continues to set the standard in enterprise servers and moves forward in understanding the storage management needs of IT managers. "We're excited to be working with Crossroads. iSCSI presents many challenges to the storage industry and it's great to have this opportunity to demonstrate some of the support that will be added to Windows .Net Server," said Bob Rinne, director, base operating systems at Microsoft. "We're looking forward to the standard being completed and will continue to work with partners like Crossroads in the meantime."

"The Intel PRO/1000 T IP Storage Adapter and the Intel Labs iSCSI software distribution were chosen for Crossroads new offerings, enabling rapid prototyping and a faster time to market," said Tim Dunn, general manager of Intel's LAN Access Division. "Together with Crossroads, we are demonstrating the significant progress made towards creating real world storage solutions based on iSCSI and Gigabit Ethernet."

StorageTek is the leader in automated tape products and offers a broad range of storage solutions. Their L40 Library provides high-performance, high-capacity data management for demanding distributed environments. "As a long time partner of Crossroads, StorageTek is thrilled to be involved as they develop iSCSI support," Ian Stewart, StorageTek director of product marketing, Automated Tape Solutions. "The industry has come to expect the most advanced and proven technologies from StorageTek. By providing our tape technology, we extend our leadership position by maximizing the interoperability and scalability we deliver."

The iSCSI protocol leverages the standards-based IP network as the transport network for connectivity, extending storage links greater distances over IP networks. Broadening connectivity options for SANs beyond Fibre Channel, iSCSI provides improved access to business-critical information.

About Crossroads Systems Inc.

With headquarters in Austin, Texas, Crossroads Systems Inc. (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 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, 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.