FalconStor OEMs SafeCapacity from Solution-Soft

FalconStor Completes Integration of SafeCapacity into IPStor 2.0 as C.O.D., ‘Capacity On Demand"

SANTA CLARA, Calif. and MELVILLE, N.Y.-- Feb. 4, 2001—SolutionSoft Systems Inc, a leading provider of Intelligent Data Optimization (IDO) solutions, and FalconStor Software Inc. (Nasdaq:FALC), a leading storage networking infrastructure software company, today announced the final integration of Solution-Soft’s SafeCapacity with FalconStor’s IPstor™ storage networking software. The non-exclusive technology licensing agreement will enable FalconStor customers to take advantage of the increased storage availability, reliability and capacity protection of SafeCapacity.

IPStor's storage-only infrastructure aggregates and virtualizes storage resources and provisions services in the form of SAN and/or NAS over Fibre Channel or IP. The integration of SafeCapacity adds robust storage resource optimization and capacity downtime protection to IPStor, including policy based capacity management & optimization automation, storage load balancing with overdraft protection, and file system auto expansion.

"The advanced capacity protection and management automation features of Solution-Soft’s SafeCapacity solution makes it a perfect fit with IPStor, we’ve named it C.O.D. or Capacity-on-demand.'' said Reijane Huai, FalconStor CEO. "Many of our IPStor customers are very exciting about the unique capability of automatic expansion of Veritas file systems based on policies.''

"The licensing of SafeCapacity to FalconStor re-affirms the value proposition of our software which is greater availability and efficiencies in storage network environments,'' said Paul Wang, CEO of Solution-Soft. "The combination of SafeCapacity with IPStor significantly improves users abilities to manage their current storage resources and simplifies future expansion.''

SafeCapacity uses a policy-based configuration to continuously monitor an application server’s file systems, seamlessly allocating more storage space whenever needed. Additionally, SafeCapacity decreases the need to over-provision storage resources on individual systems, thus reducing storage related costs. As opposed to management by crisis, SafeCapacity automatically notifies system administrators when problems occur, and, based on pre-set rules, takes corrective action immediately. By automating capacity management, enterprises can greatly reduce total storage system ownership costs, thereby maximizing the return on investment.

IPStor is a storage networking software infrastructure that enables companies to utilize storage efficiently, execute backup quickly, expand capacity smoothly and significantly reduce total storage management costs. It provides vital storage services -- virtualization, active-active fail-over, capacity-on-demand, remote replication, mirroring, application-aware snapshot, zero-impact backup/restore enablers and more -- through a software-only design that runs on existing industry standard hardware. By incorporating today's well-established data transport protocols (Fibre Channel, SCSI and IP) as well as emerging standards such as iSCSI and InfiniBand, IPStor provides both SAN and NAS to companies with immediate total freedom of choice in connectivity and storage hardware. Its future-proof architecture allows companies to stay on top of their ever-evolving data storage requirements.

About FalconStor

FalconStor Software Inc. (Nasdaq:FALC) is a company founded with the mission to help enterprises raise above ever-expanding storage complexities and costs by providing the first software-only storage networking solution that simplifies storage management while drastically reducing total cost of ownership. With an unprecedented combination of manageability, performance, security and flexibility, FalconStor's flagship product, IPStor™, transcends the limitations that have historically confined SANs to local data centers.

Founded in 2000, FalconStor is headquartered in Melville. International offices include Paris; Taichung, Taiwan; and Tokyo. FalconStor is a voting member of the Storage Networking Industry Association (SNIA). For more information, visit www.falconstor.com or call 631/777-5188.

About Solution-Soft

Solution-Soft is the leading provider of Intelligent Data Optimization (IDO) solutions, which address the urgent need for automated management of data in complex networking environments. IDO solutions facilitate automated data selection, movement and redirection that optimize high availability, storage scalability and system performance. The company has developed robust data management software solutions for corporate data centers, XSP Infrastructure providers, and storage solution providers. Solution-Soft boasts more than 1,500 customers, including AT&T, Boeing, Cable&Wireless, and 3M. Solution-Soft’s market presence is also bolstered by partnerships with Citrix Systems (NASDAQ:CTXS), FalconStor. (Nasdaq:FALC), Hewlett-Packard (NYSE:HWP), Microsoft (NASDAQ:MSFT), and Sun Microsystems (NASDAQ:SUNW).

Founded in 1993, Solution-Soft is privately held and based in Santa Clara, Calif. For more information, visit www.solution-soft.com or call +1.408.346.1415.

Solution-Soft and SafeCapacity are trademarks of Solution-Soft Systems, Inc. Other registered trademarks are the properties of their respective owners.

Contact: Michael Morrison, Solution-Soft

408.346.1415