Performance and Capacity-Leading Data Protection Products for the Enterprise Fuel SEPATON's Growth Worldwide.

800+ Customers Worldwide; 50TB Average Implementation, Including 500+TB Deployment

MARLBOROUGH, Mass. -- SEPATON, Inc.'s scalable and performance-leading enterprise-class data de-duplication and virtual tape solutions have accelerated the company's growth exponentially over the last six months compared to the first half of last year. The company received $22 million in venture funding in April to fuel expansion in EMEA and APAC, as well as to accelerate new product development. SEPATON's technology now protects over 800 customers worldwide with over 30 PB of data, a 160% increase in the number of customers from this time last year.

"We are pleased with SEPATON's continued momentum and growth in the market based on strong execution here domestically and a significant strengthening of our operations overseas," said Mike Worhach, president and CEO, SEPATON, Inc. "The demand for, and acceptance of, our data de-duplication and virtual tape products is very high. We continue to earn customer retention rates of 100% with a strong base of repeat orders, proving both the immediate and the long-term value of our technology to customers. Healthcare, financial services and government markets have yielded strong growth this year. For example, SEPATON recently signed its largest integrated VTL and de-duplication sale in the company's history which over-time will exceed many PB of data, validating the tremendous strength of our enterprise-class solutions."

"SEPATON has demonstrated very impressive customer success over the past year," said Steve Duplessie, senior analyst and founder, Enterprise Strategy Group. "Its growing portfolio of capabilities adds significant value to its virtual tape libraries, resulting in a true enterprise class solution in this segment. The next step will be to increase its market visibility and further its penetration in Fortune 500 data centers."

Earlier this year SEPATON released new models and capabilities across its entire family of advanced data protection solutions for disk-to-disk backup and recovery, data de-duplication, and remote replication. These enhancements have been accepted by the market with great enthusiasm. For example, DeltaStor[TM] software is earning customers de-duplication ratios ranging from 38 to 483:1 at sustained backup speeds of up to 17.2TB/hr. SEPATON's DeltaStor solution is the only truly scalable de-duplication offering designed specifically for large enterprise deployments. DeltaStor software performs de-duplication outside the primary data path to ensure no impact to backup performance, a key consideration in enterprise environments.

Applied Systems is using the SEPATON S2100 with DeltaStor software in a Symantec NetBackup environment. "We have been using DeltaStor for our backups and achieving an overall de-dupe ratio of 84:1 with no performance impact on our backup speed," said Tim Sander, vice president of IT for Applied Systems. He plans to rollout data de-duplication in a second datacenter for more capacity to extend online data retention without requiring additional power, cooling and space.

Of the over 800 customers using SEPATON solutions, new U.S. customers span a wide range of vertical industries. Some of these new customers include AFNI, Barnes Distribution, BDI Laguna, Crawford And Company, Eagle Alliance, Emmanuel Medical Center, Federal Reserve Bank, Gaston Memorial Hospital, University of Kansas Hospital Authority, Lawrence Livermore National Laboratory, Loyola Marymount University, LSI Corporation, MedCath Incorporated, Panasonic Automotive Systems, Pinellas County (Florida), State of Ohio, Oklahoma Office of State Finance, Transaction Line, Perot Systems Corporation, and the U.S. Environmental Protection Agency.

The company continues to bolster its international presence. In addition to opening a new office in Beijing, China earlier this year, SEPATON opened an office in Slough, England in May and tripled its headcount in the region. Other office openings are planned in France and Germany during the second half of this year. Investments in international markets have yielded significant new business with customers in EMEA, including 3M, Aselsan (Turkey), Boumouth & Poole College, Debenhams, Exist i (Sweden), Freshfields (UK), Hammer (UK), Integra (Italy), Stortech (South Africa), and Vinci. New customers in Asia Pacific, Japan and Korea include Baoding Power Co, Beijing Communications Committee, China Aviation, Datang, The First Hospital, LFTCI, and NEC.

In addition to its commitment to the enterprise, SEPATON has made great strides in the small and medium size business (SMB) market. It recently signed a strategic distribution agreement with Tech Data Corporation to extend access of its virtual tape technology to SMBs across North America. SEPATON is leveraging Tech Data's extensive distribution expertise, innovative marketing resources and broad customer base to drive sales of its S2100-DS2 virtual tape library designed specifically for the needs of the SMB market.

About SEPATON, Inc.

SEPATON is enabling companies of any size to comply with demanding data storage and retrieval requirements by changing the rules of data protection. We provide innovative, disk-based solutions that are intelligent, reliable and reduce storage, management and recovery costs. Because the proven SEPATON ContentAware[TM] architecture keeps track of all files and content, it enables faster and more efficient performance of a range of advanced data protection, data retention and data recovery functions. SEPATON's virtual tape library systems dramatically out-perform tape and other disk-based solutions. For additional information call 508-490-7900 or visit www.sepaton.com.

SEPATON, SRE and S2100 are registered trademarks of SEPATON Corporation. ContentAware, Site2 and DeltaStor are trademarks of SEPATON Corporation. All other brand and product names are or may be trademarks of their respective owners.