Diligent Technologies Announces Record Breaking Q4 2006

Diligent Technologies Corporation, a leading provider of
enterprise data protection solutions, today announced it experienced
record breaking sales growth in the last quarter of 2006. Since it
became generally available in January 2006, Diligent's ProtecTIER Data
Protection Platform has been increasingly installed in the world's
Fortune 1000 data centers. With an ever expanding list of customers
Diligent has recently added 3 of the top 10 telecommunications
companies in the world, 1 of the top 5 global car manufacturers, 1 of
the top 5 global commercial banks, 1 of the top 3 global pension
funds, 1 of the top 5 global health care companies and 1 of the top 5
global media and entertainment conglomerates.

"We are very pleased with the accelerated rate of adoption of
ProtecTIER by the world's largest data centers. Our customers are
deploying ProtecTIER at the core of their data protection operations,
leveraging its currently unmatched combination of inline
de-duplication, high performance and scalability," said Doron Kempel,
Chairman and CEO of Diligent Technologies. "An average customer
deployment consists of 5-10 ProtecTIER servers, with 30TB of physical
disk each. This implies that ProtecTIER deployments typically manage
Petabytes of backup and archive data. Our distribution partners have
done an excellent job learning and deploying this new technology, and
we are excited about the prospects of 2007."

In Q4 alone, Diligent customers purchased more than 3 PB of
physical storage in association with ProtecTIER systems. Diligent is
poised to announce new enterprise performance breakthrough numbers in
association with ProtecTIER in the near future.

ProtecTIER is the industry's first enterprise-class disk-based
data protection solution enabling companies to reduce their required
backup disk storage capacity by 25 times or more. ProtecTIER has
broken industry throughput and scalability records, positioning it as
the only inline de-duplication platform in the enterprise data-center
market that allows users to combine the reduction in backup and
archive storage needs, without trading off backup throughput, capacity
of storage under management or integrity of data protection processes.

Additionally, Diligent's ProtecTIER has been named a finalist in
TechTarget's Storage magazine-Searchstorage.com "Storage Products of
the Year" awards for 2006. Diligent was nominated in the Backup and
Disaster Recovery Software category, and is currently featured online
at www.searchstorage.com. Winners will be announced February 5, 2007.

About Diligent Technologies Corporation

Diligent delivers scalable, proven, enterprise-class disk-based
data protection solutions. Diligent's ProtecTIER(TM) platform, powered
by HyperFactor(TM), a game-changing inline data de-duplication
technology, enables customers to protect more data while recording
less of it, all without disrupting existing policies, practices and
procedures in their data center. Diligent's solutions and professional
services are available through its reseller and partner channels along
with sales, service and R&D support located worldwide. Information on
Diligent Technologies is available on the World Wide Web at
www.diligent.com, tel: +1-508-663-1300 or e-mail: info@diligent.com.

Note to Editors: Diligent, Diligent Technologies logo, VTF,
ProtecTIER and HyperFactor are trademarks of Diligent Technologies
Corporation. All other trademarks are the property of their respective
owners.