Crossroads Systems to Exhibit at ITUG Summit 2006.

Virtual TapeServer Demonstrated to Highlight Recently Acquired Tape Laboratories, Inc.

AUSTIN, Texas -- Crossroads Systems, Inc. (PINK SHEETS: CRDS), a leading provider of Business Information Assurance (BIA) solutions, today announced participation in the ITUG Summit 2006 to be held in San Jose, California October 15th-18th. Crossroads will show HP's Virtual TapeServer (VTS), a solution featuring Crossroads' technology gained through a recent acquisition of TapeLabs.

Recognized as the premier international event for HP NonStop users, the ITUG Summit features live demonstrations of HP's industry-leading VTS showcased at HP's booth 822. Participants are encouraged to attend an HP session on VTS co-presented by Larry Mendoza, VTS product manager for HP's NonStop Enterprise Division, and Allan Ignatin, CTO of Crossroads Systems (session V-21 on Tuesday, October 17th at 3:15 p.m.).

The latest addition to the Crossroads SurePath(TM) product family, VTS also stands as an integral part of Crossroads' BIA technology solutions. Live demonstrations of VTS will be exhibited at Crossroads' booth 1028 throughout the event.

Further, in a separate session (MEA-3-U, Tuesday October 17th at 11:30), Brian DaSilva, systems analyst at Sungard Securities Finance, will present a case study on Sungard's use of VTS, titled, "Implementing a Fault Tolerant Data Protection System with Minimal Effort." Show attendees will also have the opportunity to attend customer presentations and schedule in-person meetings to obtain more detailed VTS presentations as well as to discuss Crossroads' extended lines of BIA technology solutions.

VTS, a fully integrated virtual tape hardware and software solution, is designed and fully-qualified for HP NonStop server customers. VTS delivers reliable, scalable and high-performance virtual tape for backup and restore, HP NonStop Transaction Monitoring Facility (NonStop TMF) Software, as well as archive and disaster recovery operations. Not limited to HP NonStop servers, Virtual TapeServer also simultaneously supported many other systems such as HP-UX, HP OpenVMS, IBM AIX, IBM OS/400, Unisys MCP, Sun Solaris, Linux([R]) and Microsoft([R])Windows([R])systems. VTS is sold and supported by HP's NonStop Enterprise Division on an OEM basis and stands as the only virtual tape product certified for use on the HP NonStop platform.

"ITUG Summit 2006 presents Crossroads and TapeLabs with a targeted audience for demonstrating our innovative BIA technologies," said Allan Ignatin, Chief Technology Officer at Crossroads Systems and founder of Tape Laboratories. "As a result of TapeLabs' merger with Crossroads, we are excited to offer a broader range of state-of-the-art Business Information Assurance solutions to a variety of audiences which definitely includes tailored solutions for HP NonStop users."

For more information on the above events or to schedule in-person appointments, contact Brian Ignatin at [e-mail] or Glenn Haley at [e-mail].

For information on ITUG Summit 2006, visit http://www.itug.org/events/summit/2006/.

About Crossroads Systems, Inc.

With headquarters in Austin, Texas, Crossroads Systems is a leading provider of Business Information Assurance (BIA) solutions. Solutions from Crossroads serve the growing needs of data storage, business continuity, disaster recovery, information protection, risk management and business information assurance markets. Crossroads' offerings are designed to help companies store, manage and ensure the security, resiliency and access to their critical enterprise information. Crossroads' products are embedded in solutions from companies such as EMC([R]), HP, Quantum([R]) and Sun. Crossroads (CRDS.PK) is currently traded on the Over the Counter Bulletin Board (OTCBB) and is a member of several key industry associations such as the Storage Networking Industry Association (SNIA). For more information about Crossroads Systems, please visit www.crossroads.com or call 1-866-BUY-CRDS / 1-866-289-2737.

Forward-Looking Statements

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.

[c] 2006 Crossroads Systems, Inc. Crossroads, Crossroads Systems and SurePath are trademarks or registered trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.