FalconStor Delivers Comprehensive Continuous Data Protection (CDP) Solutions to Optimize Backup and Recovery for Enterprise, Branch Office, and Small Businesses.

SAN DIEGO -- FalconStor CDP Eliminates Backup Window, Minimizes Data Loss, Accelerates Backup Speed, and Facilitates Rapid Recovery of Individual Files, E-mail, Databases, Systems or the Entire Site

FalconStor Software, Inc. (Nasdaq:FALC), the leading developer of proven data protection solutions, today announced comprehensive continuous data protection (CDP) solutions that maximize business continuity for all enterprises, branch offices, and small/medium businesses (SMBs). FalconStor's CDP solutions provide instant, granular recovery of mission-critical databases, e-mail, files, and even the entire system ("bare metal recovery") in the event of hardware or software failures, or site-level disasters.

Designed to meet the most stringent recovery point objectives (RPO) and recovery time objectives (RTO), FalconStor CDP continuously journals and bookmarks periodically, or on-demand the production host's data to facilitate administrator -- or user-initiated recovery. A unique "visual slider" interface allows users to intelligently identify and roll back to the most relevant image to avoid wasting time on performing recovery in a trial-and-error manner.

FalconStor(R) CDP works in concert with the company's VirtualTape Library (VTL) to provide the following business benefits to a customer's backup/recovery infrastructure in a non-intrusive manner:

--Minimizes data loss by continuously intercepting and recording changes via FC switch, host or SAN.

--Eliminates the constraint of the backup window; data captured by FalconStor CDP can be fed to the media server directly over the high-speed SAN on demand.

--Eliminates performance impact and resource contention on the application host; FalconStor CDP can channel the backup data to the media server on behalf of the application host with 100 percent transactional integrity.

--Accelerates backup speed and reliability; CDP enables the media server to realize the full potential of VTL with unprecedented performance and reliability.

--Optimizes business continuity and disaster recovery. Besides facilitating rapid recovery of individual files, e-mails, databases, and the host, CDP can replicate the protected data to a remote disaster recovery (DR) center in a continuous manner.

FalconStor CDP tightly integrates with a wide range of database, messaging, and file systems--including Microsoft(R) Exchange, SQL Server, and Windows; Oracle(R); Sybase(R); IBM(R) Lotus Notes/Domino and DB2 UDB(R), Linux, and NetWare(R) -- to put active applications in a stable state, so that they can be backed up with complete transactional and point-in-time integrity. This application-awareness, which enables all essential information to be recovered quickly, without lengthy consistency checks or failed recoveries, is in sharp contrast to brute-force snapshots, which often result in partial transactions and file-system corruption.

"We are delighted to add FalconStor's adaptive CDP solutions to our enterprise portfolio," said Lodi Vercelli, president and CEO of Midrange Computer Solutions (MCSI). "MCSI provides a wide range of solutions to enterprise customers, and FalconStor's modular CDP approach is a great recovery management solution. We are happy to be able to provide our customers with end-to-end continuous data protection across their data centers and remote offices. This will allow enterprises to protect their data efficiently throughout the recovery lifecycle."

FalconStor CDP offers benefits that reach beyond immediate recovery of production data in the data center or branch office; it provides disaster protection by continuously replicating data, via TCP/IP or FC, to the user's DR site or to FalconStor's PrimeVault(SM) hosting facility.

FalconStor CDP and VTL allow the customer to protect and recover business-critical data with unprecedented flexibility by:

--Allowing the administrator to retain and recover critical (hot) data with the finest level of granularity: at the boundary of individual "write" commands

--Allowing the administrator to rollback the system state beyond the time-critical period at a less granular level (day/hour/minute/second) with 100 percent transactional integrity

--Enabling third-party tape backup software to perform ultra-fast serverless tape backup, on a daily basis, for compliance or archiving purpose

--Utilizing either CDP or VTL (based on whether the customer's disaster recovery procedure is disk-centric or tape-centric) to replicate mission-critical data to the DR center or to FalconStor's PrimeVault hosting facility

"We have found the challenges of rapid recovery are too demanding to leave to just tape-based backup and recovery," said Arun Taneja, founder and president of The Taneja Group. "Recovery management requires an approach similar to that of information lifecycle management and must exist as a comprehensive approach to data protection and recovery throughout the data lifecycle. FalconStor has helped make recovery management a reality by bringing an end-to-end, adaptive CDP offering to market across a wide range of business types and sizes, and integrating CDP with their offsite replication and advanced virtual tape solutions."

FalconStor's CDP solutions offer the following unique competitive advantages:

--Time-based retention policy coupled with on-demand/event-driven bookmarks to facilitate rapid recovery

--Application-awareness to allow the user to restore the data with 100 percent transactional integrity

--Reverse journaling mechanism that provides immediate access to a recent system image

--Flexible configuration (host, switch or appliance-based) that facilitates rapid deployment

--Seamless integration with third-party backup software and VTL to realize maximal ROI 

"The ability to meet RTO and RPO are vital to the health and competitiveness of any business," said John Lallier, vice president of technology, FalconStor. "FalconStor will continue to team with our strategic industry partners to offer innovative, fully integrated data protection services to maximize the availability of our customers' IT operations."

About FalconStor

FalconStor Software, Inc. (Nasdaq:FALC) is the premier developer of adaptive data protection solutions that optimize data center efficiency and business continuity for all IT infrastructures. The company's innovative storage virtualization, continuous data protection (CDP), disaster recovery, and virtual tape library (VTL) solutions integrate seamlessly to ensure rapid data recovery and simplified storage management. Available from major OEMs, system integrators, and resellers, FalconStor products - including award-winning IPStor(R) and VirtualTape Library software - are deployed worldwide by governments, educational institutions, and Fortune 1000 enterprises across industries including aerospace, energy production, financial services, healthcare, law, manufacturing, and telecommunications.

FalconStor is headquartered in Melville, New York, with offices throughout Europe and the Asia Pacific region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

This press release includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include: delays in product development; market acceptance of FalconStor's products and services; technological change in the storage and networking industries; competition in the network storage software market; the potential failure of FalconStor's OEM partners to introduce or to market products incorporating FalconStor's products; intellectual property issues; and other risk factors discussed in FalconStor's reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission.

FalconStor Software, FalconStor, and IPStor are registered trademarks, and PrimeVault is a service mark of FalconStor Software, Inc. in the United States and other countries. All other company and product names contained herein are or may be trademarks of the respective holders.