Crossroads Systems and LeftHand Networks Announce Strategic Partnership.

Business Editors/High-Tech Writers

Storage Networking World Spring 2004

Booth C15

AUSTIN, Texas and BOULDER, Colo.--(BUSINESS WIRE)--March 29, 2004

Crossroads Systems(R) Inc. (Nasdaq:CRDS), a leading global provider for storage networking solutions, and LeftHand Networks(R), the leading provider of complete, integrated IP storage area network (SAN) solutions, today announced a strategic partnership for the joint development of technology leveraging Crossroads' core competencies in data routing and networked storage connectivity with LeftHand Networks' expertise in distributed storage utilization.

With LeftHand's SAN/iQ(tm) technology, Crossroads will be able to provide a platform that delivers a full set of storage management and provisioning features including:

-- Centralized storage management;

-- Volume creation and sizing;

-- Non-disruptive scalability;

-- Automated failover;

-- Local and remote replication;

-- Snapshot; and

-- Automated data migration.

This solution will allow data center managers to provide high-performance Fibre Channel SAN services to departmental IP-based servers currently utilizing direct-attached storage. The solution will also offer significant advantages including:

-- Simplified management, flexible provisioning, and enhanced

data protection for Windows servers that have not previously

had access to centrally managed Fibre Channel storage;

-- Built-in redundancy for storage resources distributed through

the router infrastructure, eliminating any single point of

failure;

-- Increased asset utilization for sites with existing Fibre

Channel implementations through the connection of additional

servers to the centrally managed infrastructure; and

-- Provisioning of high-end SAN functionality to those sites with

lower-end, direct-attach SCSI storage.

"With the alliance of Crossroads and LeftHand, we have taken a significant step to expanding our reach in the overall SAN market," said Rob Sims, president and chief executive officer, Crossroads Systems. "The jointly developed product will deliver the breadth and power of LeftHand's SAN/iQ operating system on a Crossroads platform designed to consolidate and ease the management of disparate, multi-vendor IT infrastructures and systems."

A strategic initiative for Crossroads is providing intelligence at the edge, or the ability to move higher-level functions into its customer's storage routing platforms. The strategic relationship with LeftHand Networks is key to this effort, providing full-featured SAN functionality integrated with Crossroads technology for SAN fabric-based solutions.

"We're pleased to work with Crossroads, a leader in multi-protocol storage routing," said Bill Chambers, president and CEO of LeftHand Networks. "Both their technology and their strong presence in enterprise accounts will benefit LeftHand as we move into the next phase of our business. The relationship with Crossroads will demonstrate the portability of our SAN/iQ software and move our unique technology deep into established Fibre Channel networks."

"Using LeftHand Networks' software function with Crossroads router technology at the edge of a network, users have the opportunity to greatly expand the number of servers that can take advantage of centralized storage management," said Randy Kerns, Senior Partner, The Evaluator Group. "The storage virtualization router concept will play well to organizations with large numbers of stranded servers."

Crossroads will be demonstrating the SAN technology developed with LeftHand Networks during Storage Networking World, April 5-7 in Phoenix. Visit Crossroads Systems in booth C15.

Product availability is planned for late 2004.

About Crossroads Systems Inc.

With headquarters in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is a leading global provider of data routing solutions for Storage Area Networks (SANs). Crossroads' solutions serve the growing storage connectivity and data storage markets, and are designed to help companies store, manage and ensure the integrity and availability of their data. Crossroads' products are in solutions from companies such as EMC, HP and StorageTek, and are distributed through partners such as ARROW, Bell Micro, DLT Solutions, Info-X, Promark, and TidalWire. 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.

About LeftHand Networks

LeftHand Networks Inc. re-defined shared network storage in 2001 with the introduction of the first full-featured IP Storage Area Network (SAN). LeftHand's next-generation network distributed virtualization technology -- the intelligence behind the SAN -- pools the total storage capacity, centralizing the management of all the storage modules through one intuitive GUI interface. While sophisticated in design, this network distributed virtualization technique greatly simplifies the user experience. The LeftHand SAN is ideal for server and storage consolidation, centralized backup, and disaster recovery projects.

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 acceptance by our existing customers of any new family of products; the deteriorating economic environment, including, in particular, related expense reductions by organizations affecting their IT spending and budget which could impact sales; 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' ability to develop new and enhanced products that achieve market acceptance; the continuation of Crossroads' successful relationships with its limited number of OEM customers; Crossroads' inability to protect its intellectual property rights, as well as, 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. Crossroads expressly disclaims any obligation to release publicly any updates or revisions to the information contained in this press release or with respect to any future distribution of its stock by investors, or to update or revise 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.