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FalconStor Introduces the Industry's First Deduplication Solution to Accelerate Backups and Eliminate the Backup Window

MELVILLE, N.Y., April 6, 2009—FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY Open™ data protection solutions, today announced a new backup acceleration option for FalconStor® Virtual Tape Library (VTL). The new FalconStor VTL Backup Accelerator improves backup processes by offloading backups from production environments, eliminating impact on host applications, boosting speed and entirely eliminating the backup window. Typical backup speed enhancements range from 4 to 8 times faster than host-based backups, significantly reducing backup time, reclaiming backup management time and lowering operating costs.

"Backup systems in use today were designed for a fraction of the volume data that modern enterprises routinely manage and protect every day; most IT managers are overwhelmed with the daunting task of maintaining a simple routine backup schedule, and they need a creative solution," said Alex Jiang, vice president of worldwide marketing, FalconStor Software. "FalconStor understands backup better than most data protection vendors, and we have designed an elegant solution that allows today's businesses to protect their most import asset without working around the clock."

The rapid growth of digital data and the constant pressure of online services on production systems are overloading backup windows, making many companies vulnerable to data loss. Even though FalconStor VTL helps accelerate backup operations by providing scalable, high-performance back-end support to backup applications, the challenge remains in the overloads applied by the backup host agents on production systems on the front-end of the backup data path. The result is a very tight backup window that does not provide enough time to complete all necessary backups.

"The FalconStor VTL Backup Accelerator brings a whole new dimension of efficiency to traditional file-level backup in practice today," said Lauren Whitehouse, analyst with Enterprise Strategy Group. "The new VTL option modernizes today's cumbersome way of performing backup without ripping out existing backup applications or necessitating process changes. Inserting this option on the front side of the backup process promises to greatly optimize backup, just as VTL modernized backup when inserted behind media servers to improve performance and reliability."

FalconStor VTL Backup Accelerator option uses HyperTrac™ agents to offload backup cycles from application servers and to enable SAN-based backup processes, allowing backups to run at any time. This enables high-speed backups through the high-performance SAN infrastructure instead of the traditional backup method through the general purpose network or the LAN. In addition, the cost of backup agents is eliminated to improve capital expenses, and CPU cycles traditionally consumed by backup agents are reclaimed.

Pricing and Availability
The FalconStor VTL Backup Accelerator option is available immediately for a U.S. list price of $20,000; it includes one VTL Backup Accelerator option software license, 16 host agent licenses for Microsoft Windows and/or Linux application servers, and one HyperTrac agent license for any supported backup software.

About FalconStor Software
FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. FalconStor delivers proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. The Company's TOTALLY Open™ technology solutions, built upon the award-winning IPStor® platform, include the industry leading Virtual Tape Library (VTL) with deduplication, Continuous Data Protector (CDP), and Network Storage Server (NSS), and are enabled with WAN-optimized replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including Acer, COPAN Systems, Data Direct Networks, DSI, EMC, H3C, IBM, Pillar Data Systems and Sun and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises.

FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit http://www.falconstor.com/ or call 1-866-NOW-FALC (1-866-669-3252).

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FalconStor, FalconStor Software, and IPStor are registered trademarks, and TOTALLY Open and HyperTrac are trademarks of FalconStor Software, Inc. in the US and other countries. All other company and product names contained herein may be trademarks of their respective holders.

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