Crossroads and Sun Microsystems Sign OEM Agreement.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Feb. 12, 2001

Agreement Gives Medium-to-Large Businesses More Bandwidth

for Data Movement Between Sun Enterprise Servers and

S/390-Class Mainframes

Crossroads Systems Inc. (Nasdaq:CRDS), a leading provider of connectivity for storage networking solutions, today announced it has entered into an original equipment manufacturer (OEM) agreement with Sun Microsystems.

Under the agreement, Sun will sell Crossroads' Enterprise System Connection (ESCON(R)) channel interface adapters to connect Sun Ultra Enterprise servers and IBM or compatible System 390 (S/390) mainframes via a high-speed fiber optic link.

"With more than half of the world's data stored on mainframes, medium-to-large businesses are constantly seeking ways to move data efficiently to and from open systems," said Brian R. Smith, chairman and CEO of Crossroads Systems. "This process can be very time consuming over a local area network. However, by connecting directly to a Sun Solaris(R) platform using our ESCON solution, data transfer performance is significantly improved."

The OEM agreement includes Crossroads' 6950 PCI-to-ESCON Channel Interface and software for TCP/IP applications and fast data movement. The products will be sold under the Sun brand, providing Sun customers with increased bandwidth and a high-speed ESCON connection between mainframes and Sun Enterprise servers for data intensive applications.

"High-speed data movement is essential in many applications, such as data warehousing and data backup and recovery," said Steve Campbell, director of marketing for Sun Microsystems. "With increased amounts of data and shrinking processing windows, direct, fiber optic connections between mainframes and Sun's Enterprise servers make a great deal of sense. Sun customers will have a way to move large amounts of data quickly without overloading their network."

About Crossroads Systems Inc.

With headquarters in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is the leading provider of connectivity for Storage Area Networks. Crossroads' family of storage routers provides multi-protocol connectivity to Fibre Channel storage networks for a wide range of devices, including servers, S/390 mainframes, and disk and tape storage systems. Crossroads' solutions enable key Internet, intranet and e-commerce applications to both small and mid-sized companies, as well as Global 500 enterprises. Crossroads' products are in solutions from ADIC, ATL, Compaq, Dell, Fujitsu Siemens, Groupe Bull, Hewlett-Packard, Hitachi Data Systems, IBM, McDATA, StorageTek, Unisys, ACAL, Bell Micro, Cranel, Datalink and Tech Data. Crossroads is a voting member of the Storage Networking Industry Association (SNIA) and the InfiniBand(sm) Trade Association. For employment opportunities and more information about Crossroads Systems, please visit www.crossroads.com or call 800/643-7148.

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: Crossroads' limited operating history which makes it difficult to accurately predict revenues and budget for expenses for future periods; the extent of Crossroads' future operating losses and negative cash flow the dependence of Crossroads' business on the storage area network market which is new and unpredictable; 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' ability to retain and recruit key personnel to manage its business successfully; the quarterly fluctuations of Crossroads' operating results; 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 Report on 10-Q.