Government Computer News (GCN) Chooses FalconStor^® File-Interface Deduplication System over Nearly 100 New Products Presented by More Than 65 Companies

MELVILLE, N.Y., March 26, 2010 – FalconStor Software, Inc. (NASDAQ: FALC), provider of TOTALLY Open™ data protection solutions, today announced that Government Computer News (GCN) selected FalconStor^® File-Interface Deduplication System (FDS) as the top storage product and the best of show overall at FOSE, held in Washington, D.C., this week.

The GCN Best of FOSE Awards are bestowed on technology products that demonstrate outstanding and innovative approaches to critical issues facing government users.  The editors and technology analysts who select the winners do so based on four criteria: innovation, usability and applicability to the business of government, performance and value.　

Calling FalconStor FDS “a file deduplication system that could represent the next wave in storage,” and “…a significant step in streamlining storage,” GCN elevated the product to best of show over the 14 other category winners and the nearly 100 products introduced at FOSE by more than 65 technology companies.　

FalconStor FDS is a capacity-optimized storage repository that helps organizations of all sizes reduce storage space and costs while ensuring that backups of critical systems can always be completed within narrow windows. Capacity requirements for disk-to-disk backup applications can be reduced by as much as 20 times or more with FalconStor FDS by eliminating data redundancies resulting from backup operations. FalconStor FDS enables government users to retain data online, longer, and with quicker restores.　

“Government organizations are looking for solutions to simply and effectively protect their growing data repositories and server infrastructures; however, common protection, retention and archiving methods accelerate redundancy and the proliferation of data,” said Fadi Albatal, vice president of North American marketing for FalconStor. “By naming FalconStor FDS as best of show at FOSE, the judges have underscored the seriousness of today´s storage management issues and the need for government agencies to solve their storage problems with the right technology.”

“Technology is a catalyst for driving the nation´s economic recovery, and, more specifically, for improving government services,” said Wyatt Kash, GCN´s editor-in-chief. "As the largest event for government technology decision makers, FOSE provides a unique look into current and future technology developments. GCN commends the companies selected as winners of the Best of FOSE Awards for their innovative approaches to supporting the government market.”

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), File-interface Deduplication System (FDS) and Network Storage Server (NSS), each enabled with WAN-optimi zed replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including 3Com, Acer, Data Direct Networks, Dynamic Solutions International, EMC, IBM, Oracle, Pillar Data Systems, SGI and Spectra Logic and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises.

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