Softek Reports Continued Revenue Growth and Positive EBITDA in Fiscal Q2 with Nonstop Data Mobility(TM) Solutions.

Company Ranked in Top 10 for Market Share in Storage Replication Software Report; Achieves Annual Growth Nearly Double the Industry Average of Data Replication Worldwide Market

VIENNA, Va. -- Softek[R] Storage Solutions, the leader in Nonstop Data Mobility[TM] software solutions, today announced continued revenue growth for its portfolio of non-disruptive, multi-vendor data migration, data replication and disaster recovery software products during the second quarter of fiscal year 2007, ending September 30, 2006.

Softek posted second quarter total revenue growth over the prior-year same period. Second quarter and fiscal year to date operating profit from Softek's line of open systems Nonstop Data Mobility[TM] solutions increased 127 percent and 396 percent, respectively, on a year-over-year basis. The company also achieved its sixth straight quarter of positive earnings before interest, taxes, depreciation and amortization (EBITDA). Maintenance renewals rates from Softek's traditional line of mobility solutions remained steady at 95 percent.

"Softek maintained positive revenue growth and profitability during the quarter, despite seasonally slower sales typical of summer months," said Steven Murphy, president and CEO, at Softek. "Our financial results demonstrate that the market is embracing our mission to provide a simple, unified approach to moving data across the enterprise as part of any IT infrastructure change on any major storage, platform or distance with zero downtime or performance impact. This also is substantiated by recent industry research that showed Softek is a prominent player and one of the fastest-growing companies in the data movement market space."

Second Quarter Highlights

During the quarter, research from, IDC showed Softek's Nonstop Data Mobility solutions were growing nearly double the industry average. In IDC's Worldwide Storage Replication Software 2005 Vendor Shares report (IDC #203232), released in August 2006, Softek was in the top 10 in market share out of 24 listed companies. The company's annual growth rate of 32.7 percent for 2005 eclipsed the industry average of 18.3 percent.

"We are finding more customers interested in heterogeneous, host-based replication software, as a cost-effective method for disaster recovery and data migration," said Rhoda Phillips, IDC storage research manager. Softek's solutions address those customer requirements for multiple platform support that are consistent with their existing procedures and use existing resources."

Softek continued to enhance its suite of Nonstop Data Mobility solutions with new releases for local and distance data migrations that significantly increase performance and manageability within large, enterprise UNIX and Linux environments. Softek Transparent Data Migration Facility (TDMF) UNIX, Version 3.0, is the industry's first software that allows logical disk volumes to be segmented into multiple regions during the migration process to allow local data migrations to be completed four times faster as compared to existing tools and utilities.

The new release of Softek TDMF IP offers enhanced functionality and scalability for its distance data migration software to enable faster and more convenient migrations over TCP/IP within Unix and Linux environments. New features include Restart-able Full Refresh, which enables existing migrations to re-start from the point of broken network connection and provides storage administrators considerable time savings, especially if a broken link condition occurs near the middle or end of a large data migration. In addition, TDMF IP now allows migration of disk volumes up to four times larger than previously supported volume sizes.

Softek also was a participant at the SHARE User Events trade show, where mainframe storage professionals from Principal Financial Group, a Des Monies, Iowa-based leader in financial products and services, discussed their current use and future plans for Softek Logical Data Migration Facility to move datasets non-disruptively for enhancing the performance and utilization of their multi-vendor storage environment.

Softek's open systems data migration and data replication software products successfully completed interoperability testing with IBM's System Storage products and were confirmed as IBM System Storage Proven. They join the company's data migration and replication products for z/OS environments (TDMF z/OS) which have previously completed testing for seamless interoperability with IBM storage.

Softek announced that Sun Microsystems is using Softek TDMF as a key component of its new Host-Based Data Migration Service for replacements and/or upgrades in Solaris[TM], UNIX, Windows and z/OS environments. The Sun HBDMS can also provide the data movement required to support a variety of common IT initiatives, including optimization, consolidation, relocation and implementing tiered disk storage. Softek TDMF was used in a successful data migration project performed by Sun HBDMS that moved more than 11 TB of data to Sun storage.

About Softek

It's all about protecting your application uptime ...

Softek's Nonstop Data Mobility[TM] offerings provide a simple, unified solution to moving data without disruption within the enterprise environment Co a critical component to IT operational practice Co and work on any storage, any platform and over any distance with zero downtime or performance impact. Integrate Softek's Nonstop Data Mobility solutions into your IT architecture and you will improve your ability to keep data online, mitigate risk of data loss or corruption, reduce costs, manage data across mixed environments, and optimize storage while still meeting all business continuity of operations requirements.

The industry leader in host-based data migration, moving over 40 petabytes for the majority of Fortune 1000 companies since 1996, Softek Storage Solutions Corporation is an independent software company based in Northern Virginia . Global partners include EMC, Fujitsu, HDS, HP, IBM, and Sun, in addition to distributors and resellers worldwide. For further information, visit www.softek.com.

Softek is a registered trademark, and Nonstop Data Mobility and TDMF are trademarks, of Softek Storage Solutions Corp. LDMF is a trademark of Softek Storage Solutions Corp. and EMC Corp. All other products, services and company names mentioned herein may be trademarks of their respective owners.