Chelsio and FalconStor Team to Deliver High-performance IP SAN Solutions for Mission-critical Environments

FOR IMMEDIATE RELEASE

CHELSIO AND FALCONSTOR TEAM TO DELIVER HIGH PERFORMANCE IP SAN SOLUTIONS FOR MISSION-CRITICAL ENVIRONMENTS

FalconStor Certifies Chelsio S310 10Gigabit Ethernet (10GbE) Storage Adapter

SUNNYVALE, CA, OCTOBER 16, 2007 – Chelsio Communications, Inc., a provider of 10-Gigabit Ethernet unified wire solutions, today announced that FalconStor Software Inc (Nasdaq: FALC), a leading provider of data detection and network storage infrastructure software, has certified Chelsio’s S310 10 Gigabit Ethernet (10GbE) Storage Adapter as fully interoperable with FalconStorВ® IPStorВ® Enterprise Edition software for RedHat Enterprise Linux 4 (RHEL4). As a result, enterprise customers can leverage a 10 Gigabit Ethernet (10GbE) IP storage area network (IP SAN) solution that delivers industry-leading performance with maximum data availability and reliability for mission-critical applications.

The value and high-growth of iSCSI SANs stem from its leverage of commodity Ethernet with its massive scale economies, widespread administrative expertise and management tools. Because of Ethernet, IP SANs enable reducing the deployment and administration costs for SAN dramatically.

A 10GbE-based iSCSI SAN offers over twice the bandwidth of 4Gbps Fibre Channel SAN, along with the ease and flexibility of IP, and eliminates the specialized and expensive Fiber Channel equipment and administration. 10GbE iSCSI also fulfills the vision of converging networking, storage, and cluster computing onto a common network infrastructure, based on Ethernet.

10GbE is emerging to be a key enabler for enterprise-level iSCSI deployment with performance scalability and return on investment (ROI) being the key differentiators, said Bob Wheeler, senior analyst, The Linley Group. 10GbE iSCSI benefits a range of data intensive applications requiring high throughput and IOPS, such video streaming, image processing, back-up, and decision support.

FalconStor and Chelsio share a commitment to providing industry-leading performance, unmatched availability, and enterprise-level scalability for storage area networks, said Bernie Wu, vice president of business development for FalconStor. The combination of Chelsio’s S310 storage adapter and the FalconStor IPStor solution provides our mutual customers with industry-leading performance and added value in SAN environments. We are pleased to certify Chelsio’s 10GbE adapter as a qualified option for our IPStor virtualization platform.

We view the combined Chelsio/FalconStor 10GbE IP SAN solution to be ground-breaking in allowing enterprises to deploy highest-performance, high ROI iSCSI SANs using volume Linux hardware, said Kianoosh Naghshineh, president and CEO of Chelsio. “This certification with FalconStor further executes upon our business strategy to deliver the best performance and high availability requirements for storage networking and unified wire applications.

About FalconStor Software, Inc.
FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. We deliver proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. Our technology-independent solutions, built upon the award-winning IPStorВ® virtualization platform, include the industry leading VirtualTape Library (VTL) with Single Instance Repository (SIR) for de-duplication, Continuous Data Protection (CDP), Storage Virtualization, and Replication for disaster recovery and remote office protection. Our products are available from major OEMs and solution providers including EMC, SUN, Brocade, H3C, and COPAN 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 regions including Paris, Tokyo and Taiwan. For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

About Chelsio Communications
Chelsio Communications is leading the convergence of networking, storage and clustering interconnects with its robust, high-performance and proven unified wire technology. Featuring a highly scalable and programmable architecture, Chelsio is shipping 10-Gigabit Ethernet and multi-port Gigabit Ethernet adapter cards, delivering the low latency and superior throughput required for high-performance computing applications. For more information, visit the company online at www.chelsio.com.

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Media Contact:
Tim Helms
Helms Communications, Inc.
1.925.606.6936
thelms@chelsio.com