FalconStor and Volante Team to Provide Data Protection, Storage Consolidation, Accelerated Backup and Compliance to Australian Market

<p>Sydney, Australia, September 26, 2005–FalconStor Software, Inc. (Nasdaq: FALC), a developer of network storage software solutions, and Volante, a Australian-owned ICT infrastructure and services company, today announced an agreement to bring the enterprise-level benefits and capabilities of FalconStor technology to the Australian market.</p>
<p>Under the agreement, Volante will integrate FalconStor’s IPStor® software and VirtualTape Library technology with infrastructure solutions and services from its existing vendor and professional services portfolio. Volante and FalconStor plan to deliver to customers a complete storage and data management selection of tools and functionality to address the increasing demands for continuous data protection, remote edge-to-core replication, backup acceleration and data recovery.</p>
<p>“Volante understands that truly effective solutions depend today on software feature sets and specialist services for integration and customisation to suit a customer’s exact needs rather than shoehorning products,” said Paul Harris, business unit manager for Volante. “The storage market has changed dramatically, resulting in our customers having lots more choices. By innovating solution sets, we are able to add significant value to our customers, and with FalconStor, this ability is greatly enhanced.”</p>
<p>The initial technology focus areas for Volante include FalconStor’s replication between heterogeneous storage arrays, WORMLock™ functionality for regulatory compliance, storage/server consolidation through virtualisation, and VirtualTape Library solution for accelerated backup and recovery operations. Volante will leverage FalconStor technology to tailor solutions addressing the storage pains confronting their target corporate and government clientele across Australia.</p>
<p>“FalconStor is extremely excited to be tackling the enterprise data storage marketplace with Volante, as they certainly are a premier organisation, with many years of integration expertise,” said Joel Norton, Australia/New Zealand regional director for FalconStor Software. “From a national perspective, Volante will be an excellent ally for FalconStor, with their many major account relationships in Australia. We look forward to a long and mutually beneficial association as we work together to deliver reliable, expandable, and easy-to-use solutions solving our customer’s most pressing storage challenges.”</p>
<p>About Volante</p>
<p>Volante is today one of the leading ICT infrastructure and services companies in Australia. Volante employs over 950 staff and has revenues of approximately $443 million per annum. It is the largest 100% Australian-owned publicly listed ICT services company with the Australian Stock Exchange (ASX: VGL).</p>
<p>Volante offers a range of solutions in the areas of Professional Services, Managed Services and Product Solutions. Volante take a consultative approach to working with customers to design and implement ICT solutions that facilitate growth and increase productivity. For more information visit www.volante.com.au.</p>
<p>About FalconStor</p>
<p>FalconStor Software, Inc. (Nasdaq: FALC) is a leading developer of innovative network storage software that optimises the protection and availability of enterprise and SMB data and applications, ensuring nonstop business productivity while simplifying storage management and backup to reduce operational costs. FalconStor’s award-winning solutions—IPStor® Enterprise Edition, VirtualTape Library, and iSCSI Storage Server—are available from major OEMs, system integrators, and resellers, and are deployed worldwide by governments, educational institutions, and Fortune 1000 enterprises across industries including aerospace, energy production, financial services, healthcare, law, manufacturing, and telecommunications.</p>
<p>FalconStor is headquartered in Melville, NY, with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Technical Support Alliance Network (TSANet), Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information, visit www.falconstor.com</p>
<p>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.</p>
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<p>FalconStor, IPStor and WORMLock are trademarks or registered trademarks of FalconStor Software, Inc. All other company and product names contained herein may be trademarks of the respective holders.</p>
<p>Media Contacts:</p>
<p>Rob Stirling
Markom Marketing
+61 2 9977 8922
rob_stirling@markom.com.au</p>
<p>Joel Norton
FalconStor Software
+61 2 8912 2153
joel.norton@falconstor.com</p>

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