LOS GATOS, Calif. and MELVILLE, N.Y., April 16 /PRNewswire-FirstCall/ -- Hifn(TM), the power behind network and information security, and FalconStor Software, Inc., the market leader in disk-based data protection solutions, announced today the integration of Hifn's Express DR 1000 storage reduction solution with FalconStor's VirtualTape Library based on the IPStor(R) platform. Improving storage efficiency for backup is the first application to arise from this new partnership.

As Enterprise IT storage organizations are faced with an explosive data environment, the task of meeting stringent backup windows, storing and recovering data, plus addressing environmental issues, becomes a management quagmire. Focused on solving this growing dilemma, this strategic partnership will leverage Hifn's industry-standard, hardware-advantaged, storage reduction technology with Falconstor's market leading VirtualTape Library.

"FalconStor's VirtualTape Library customers need to maintain their backup performance but still reduce the storage required for fast recovery," said Bernie Wu, Vice President Business Development, FalconStor Software. "Combining FalconStor's proven platform, including de-duplication capability with Hifn's compression performance, gives customers the best footprint and power efficiency without sacrificing performance.

"Explosive data growth is a hard reality and data reduction is quickly becoming a 'must-have' for Enterprise customers," said Tom Moore, Vice President Marketing and Sales, Hifn. "Through this relationship we will deliver at least a 50% storage reduction for initial backed up data and more than two times benefit for FalconStor's Single Instance Repository de- duplication technology. This radically changes the financial investment needed to keep more data online for rapid recovery."

About Hifn Express DR 1000

Hifn's Express DR 1000 Data Reduction accelerator board doubles the performance of any disk storage system, by cutting replication, archiving, migration, and backup windows in half. The DR 1000 also doubles the capacity of storage, enabling faster network performance and longer data retention with fewer RAID drives.

Utilizing the industry-standard LZS lossless compression algorithm, the Express DR 1000 data reduction board offers load-balancing, bus-mastering DMA, and a 4-lane PCI Express bus. The board also offers a unique "enhanced" LZS (eLZS) technology, eliminating data expansion while maintaining compressed data performance. Hifn provides a Linux driver and high-level APIs to enable rapid integration and quick time to market.

About FalconStor VirtualTape Library

FalconStor VirtualTape Library software is the market leader, with over 50% of the VTL marketshare. Powered by the IPStor platform, VirtualTape Library scales from terabytes to petabytes for customers of all sizes. It seamless integrates with almost all backup software and tape environments, with robust high availability and replication for disaster recovery. It includes encryption, data-duplication and now fast and secure hardware compression from Hifn.

About Hifn

Hifn powers network and information security. Leveraging over a decade of leadership and expertise in data encryption and compression, we are a trusted partner to industry innovators for whom security is critical to their success. With the majority of secure global communications flowing through Hifn technology, the convergence of security, storage and assured access drives our product roadmap forward. We will continue as the first resource for the toughest security requirements because we anticipate as we innovate in a field that leaves no margin for error. Hifn sets the industry standards and technology firsts to secure, compress and assure information wherever needed. For more information, please visit: http://www.hifn.com/.

About FalconStor Software, Inc.

FalconStor Software, Inc. 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 http://www.falconstor.com/ or call 1-866-NOW-FALC (866-669-3252).

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, statements regarding the Company's future financial performance including, without limitation, statements related to the strategic partnership between FalconStor and Hifn, storage reduction products as 'must-haves', and storage reduction solutions solving the storage dilemma, are all forward- looking statements within the meaning of the Safe Harbor that may cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially from those described herein include, but are not limited to: dependency on a small number of customers; customer demand and customer ordering patterns; and orders from Hifn's customers may be below the company's current expectations. These and other risks are detailed from time to time in Hifn's filings with the Securities and Exchange Commission. Hifn expressly disclaims any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Hi/fn(R) is a registered trademark of hi/fn, inc. Hifn is a trademark of hi/fn, inc. FalconStor and IPStor(R) are registered trademarks of FalconStor Software, inc.

CONTACT: Corporate Communications of Hifn, Inc., +1-408-399-3520,
press@hifn.com; Adam Renner of AtomicPR, +1-415-402-0230, adam@atomicpr.com,
for FalconStor

Web site: http://www.hifn.com/
http://www.falconstor.com/