InPhase Technologies Signs Automation OEM Agreement with DSM; Will Provide Holographic Storage for Enterprise Customers.

Leading Holographic Storage Developer Partners with Enterprise Jukebox Vendor to Deliver Next-Generation Archive Storage for Global Accounts

LONGMONT, Colo. & WESTERSTEDE, Germany -- InPhase Technologies, the world's leader in holographic data storage, today announced that it has signed an automation original equipment manufacturer (OEM) agreement with DSM, a leading worldwide developer of jukebox storage systems for major enterprise customers. The agreement will enable the delivery of the first holographic archival systems, using InPhase's patented Tapestry[TM] 300R holographic drives, for customers in the broadcast, government, medical, and I.T. markets.

InPhase has already delivered the first commercial holographic storage drive, and will provide volume shipments of both the Tapestry 300R drive, and holographic media, in 2007. DSM customers include Deutsche Bank, ESA, Siemens Medical and Volkswagen, among many others. The Tapestry 300R drive will store 300 gigabytes (GB) of information on a single 5 1/4-inch disc, at a transfer rate of 20 megabytes per second (MB/s), or 160 megabits per second (Mb/s) and, together with DSM's optical jukebox systems, will provide the highest-capacity optical storage solution on the market.

"Holographic storage is now, finally, a reality for customers. It provides the high-capacity, high-density solutions for secure, long-life storage that leading companies are seeking," said Art Rancis, vice president of sales for InPhase Technologies. "Together with DSM's expertise in optical jukebox systems, our holographic archival solutions can offer today's $10 billion corporate archive storage market unprecedented value for enterprises that are straining to keep up with ever-increasing data storage demands."

"We are the only European company able to implement these holographic units into large libraries and, together with InPhase, we can address a corporate enterprise storage market that requires very high-capacity, petabyte-sized, storage. We are one of the very few jukebox providers that can provide this," said Immo Gathmann, director of sales for DSM. "We can address new markets that have yet to move beyond tape back-up for critical data archive applications and we can also offer new ways of looking at partitioning RAID systems for this initial product which, at 300 GB, is very attractive for both near-line and deep archive asset retrieval functions."

About InPhase Technologies

InPhase Technologies is the leading developer of holographic data storage recording media and systems. Based in Longmont, Colorado, InPhase was founded in 2000, and is comprised of some of the storage industry's leading executives and scientists. InPhase is funded by venture capital investors New Venture Partners LLC, Signal Lake Ventures, Newton Technology Partners, Yasuda Enterprise Development, Japan Asia Investment Company, Nanotech Partners LLC, and Mr. B.J. Cassin. Corporate investors are Hitachi Maxell, Ltd., Bayer MaterialScience AG, and ALPS Information Technology Fund. For more information on InPhase, please visit the company's Web site at www.inphase-tech.com.

About DSM

DSM Handhabungssysteme GmbH & Co. KG is an independent company focusing exclusively on mass storage solutions. Since 1987, the company has developed, produced, and distributed its TERASTORE jukeboxes to meet the specific expectations and demands of its customers. For more information, please visit the Web site at www.terastore.de.

EDITOR'S NOTE: If you would like a color photograph of Art Rancis, vice president of InPhase Technologies; Immo Gathman, director of sales for DSM, or a color photograph of the InPhase Tapestry media or holographic drive, please contact Chris Pfaff at [e-mail] or 201-218-0262.