Pillar Data Systems Announces Visionaries Quadrant Placement in Leading Analyst Report on Midrange Disk Arrays.

Evaluation Based on Completeness of Vision and Ability to Execute

SAN JOSE, Calif. -- Pillar Data Systems, a leading provider of enterprise network storage systems, today announced it has been positioned by Gartner in the visionaries quadrant in the Magic Quadrant for Midrange Enterprise Disk Arrays, 2H06.1

"We consider our positioning in the visionaries quadrant by Gartner confirmation of Pillar Data Systems' mission to help companies simplify, consolidate and save on their storage investments," said Mike Workman, CEO and President, Pillar Data Systems. "Data storage does not need to be complex or overly costly. We believe today's announcement showcases Pillar's continued innovation in the storage industry and further highlights the company's widespread customer adoption. We're excited about what we've been able to accomplish in a short amount of time and our customers will be equally excited by the benefits."

Recently, Pillar Data Systems announced an expanded version of its Axiom platform making it the most flexible, wide ranging storage system in the market today. The new entry level features of the platform include Fibre Channel, iSCSI SAN or NAS, modular software and granular, easy-to-deploy scalability. The enterprise configuration includes Fibre Channel drives with 4Gb/s FC interface, improved availability with non-disruptive firmware upgrades and doubled capacity with up to 380 TB of storage.

About the Magic Quadrant

The Magic Quadrant is copyrighted December 2006 by Gartner and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors' measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

1 Gartner Research "Magic Quadrant for Midrange Enterprise Disk Arrays, 2H06"; Stan Zaffos, Roger Cox, and April Adams, December 13, 2006.

About Pillar Data Systems

Founded in 2001, Pillar Data Systems develops midrange and enterprise network storage systems. The company's Pillar Axiom solution, driven by its innovative policy-based management capabilities, integrates SAN and NAS into a centrally managed storage platform. Pillar Axiom systems consolidate multiple tiers of enterprise network storage into a single, easily managed system capable of scaling to hundreds of terabytes of capacity. Pillar Data Systems is privately funded by Tako Ventures, LLC, the venture arm of Larry Ellison. The company is headquartered at 2840 Junction Avenue, San Jose, California 95134. The company can be reached on the Web at http://www.pillardata.com, by phone at 408-503-4000 or by email at [e-mail].

Pillar Data Systems, Pillar Axiom, and the Pillar logo are all trademarks of Pillar Data Systems. Other company and product names may be trademarks of their respective owners.