Sun Microsystems Is Now Selling the Full Line of FalconStor's Disk-Based Data Protection Solutions

FalconStor(R) Software, Inc. (NASDAQ:FALC), the market leader in
disk-based data protection solutions, today announced that Sun
Microsystems will resell the IPStor(R) platform, a complete line of
disk-based data protection solutions including heterogeneous
Continuous Data Replication (CDR), Continuous Data Protection (CDP)
and Storage Virtualization. In addition, FalconStor has certified the
IPStor platform, including CDP and Storage Virtualization on the
SunFire X4500 server, ensuring Sun users will receive the highest
level of performance and capabilities for their storage environment.
These announcements demonstrate the commitment that both FalconStor
and Sun place on addressing the serious data protection issues
customers are facing today.

Businesses are increasingly demanding an always-on environment but
also need to protect their data. Managing data under increasing
service levels and massive growth requires cost-effective, scalable
solutions to eliminate backup windows and deliver very rapid recovery.
Disk-based protection solutions such as those with the combined Sun
Storage and FalconStor's IPStor Platform provide more rapid recovery
and granular recovery points. By providing application aware
snapshots, CDP and CDR with Sun's VTL plus, IT can eliminate the
backup window and meet rapid recovery head on.

"Data is growing so fast that many of our customers are
continually facing significant storage management challenges across
their IT environment," said Nigel Dessau, senior vice president of
storage marketing and business operations at Sun. "Many of those
customers require a highly reliable and robust disk-based data
protection solution to alleviate time and resource demands.
FalconStor's IPStor platform is an important part of the integrated
package Sun can provide those users, to help them get a better handle
on their burgeoning data needs."

"We are seeing significantly increased interest from our customers
in finding ways to eliminate the backup window altogether, but also
needing to facilitate tape management," said Bernie Wu, vice president
business development at FalconStor. "With Sun offering the IPStor
platform, customers now have a comprehensive solution to address all
their data protection needs."

FalconStor has certified the SunFire X4500 for the IPStor platform
running on Linux. The X4500 with the IPStor platform creates a robust
storage solution for data protection and high density storage
applications. IPStor adds iSCSI and Infiniband to the X4500's Fibre
Channel connectivity plus extensive enterprise-class storage services.
In addition for data protection, FalconStor has certified the X4500
for its branded VirtualTape Library on Sun Solaris. The X4500 with
FalconStor's VirtualTape Library is a cost effective solution for
remote offices and smaller data centers.

About FalconStor's IPStor Platform

FalconStor's IPStor Platform is network infrastructure software
that provides the most reliable and complete disk based data
protection solutions, such as VTL, De-Duplication, CDP, Remote Office
Protection and CDR.

About FalconStor Software, Inc.

FalconStor Software, Inc. (Nasdaq:FALC) is the market leader in
disk-based data protection solutions that optimize data center
efficiency and business continuity for all IT infrastructures. The
company's award-winning storage virtualization, Continuous Data
Protection (CDP), disaster recovery, and VirtualTape Library (VTL)
solutions integrate seamlessly to ensure rapid data recovery and
simplified storage management. Its products 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.

FalconStor is headquartered in Melville, N.Y., with offices
throughout Europe and the Asia Pacific regions including Paris, Tokyo
and Taiwan. For more information, visit www.falconstor.com or call
1-866-NOW-FALC (866-669-3252).

FalconStor and IPStor are registered trademarks of FalconStor
Software, Inc in the United States and other countries. All other
trademarks are the properties of their respective owners.