THOUSAND OAKS, CA and MELVILLE, NY -- (Marketwire) -- 08/11/09 -- Nexsan Technologies, a leading provider of power-efficient disk-based storage and FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY Open(TM) data protection solutions, today announced a strategic venture to deliver a joint solution, which has resulted in the delivery of an integrated deduplication product family for high-performance, power-efficient data storage. Based on Nexsan's power-efficient storage systems and the FalconStor® File-interface Deduplication System (FDS) software, the new, Nexsan DeDupe SG ("Speed with Green") product family will be delivered by Nexsan through its worldwide network of channel partners.

The cost of traditional storage solutions makes it difficult for organizations to efficiently backup and store their rapidly growing business and application data. Compounding this challenge are tight budgets which drive an increased demand for solutions that will improve operating efficiencies while meeting performance requirements. Nexsan and FalconStor have responded to this growing need with a reliable, disk-based storage product line which offers high-performance data deduplication that has been optimized for high density, power and cost efficiency.

"Nexsan and FalconStor have made a significant leap forward in the area of operating efficiency with the new Nexsan DeDupe SG," said Lauren Whitehouse, senior analyst, Enterprise Strategy Group. "The new self-optimizing capability of this product is very unique and will help companies realize benefits in both power and data efficiency while automating critical storage management processes."

Storage deduplication systems are primarily used as backup targets, operating only during the backup window. Even though the typical backup window is less than eight hours a day, all other deduplication systems spin drives and burn energy for the remaining 16 hours, even while not in use. With Nexsan DeDupe SG, customers not only get higher capacity and better performance during their backups, they also save energy and reduce costs every hour that the system is not in use.

Nexsan DeDupe SG leverages the green efficiencies inherent to its industry-leading technology components: data reduction through high-speed deduplication, footprint reduction by utilizing space-efficient storage arrays, and substantial energy savings through AutoMAID technology. Nexsan DeDupe SG is the only high-performance, data deduplication solution with AutoMAID technology delivering "Speed with Green" to improve operational efficiency.

"The Nexsan DeDupe SG solution solves two very pressing customer needs -- reducing capacity costs and improving operating efficiency," said Michael McGuire, chief commercial officer for Nexsan. "With over 20 years of combined experience, FalconStor and Nexsan together continue their traditions of innovation by redefining deduplication and power efficiency and providing our global network of channel partners with a differentiated offering in one of the fastest growing market segments."

FalconStor FDS, the deduplication engine for the Nexsan DeDupe SG family, is a block-level deduplication software solution that presents a network share interface as a backup repository, offering customers an easy-to-use, space-saving option for writing data efficiently and cost-effectively to disk. Nexsan DeDupe SG maximizes interoperability with all data sources, including disk-to-disk backup and archiving applications. It also can be deployed in any physical or virtual infrastructure environment, offering file-level access to a central block-level deduplication repository. Nexsan DeDupe SG uses policy-based concurrent and post-process deduplication methods for maximum flexibility. The product supports all major backup software, directly accepts Oracle RMAN, Microsoft SQL and other database dumps, and provides integrated data replication and deduplication.

"The Nexsan DeDupe SG system family offers the only solution that delivers both high-performance data deduplication and automated energy savings," said Wendy Petty, vice president of North American Sales for FalconStor Software. "This FalconStor/Nexsan joint solution is focused on small-to-mid-sized enterprises but is attractive for all storage users. We are excited to offer this solution through Nexsan's global channel network, leveraging their industry-leading closed channel lead registration model."

"We see this joint solution as a win-win situation for the channel," said Greg Knieriemen, vice president of Chi Corporation, a solutions provider specializing in data storage, backup and disaster recovery. "The combination of high-performance deduplication with the dramatic reduction of energy consumption makes this solution a 'must have' in nearly every IT environment concerned about reducing storage costs, power costs and the physical footprint for storage."

Pricing and Availability

The Nexsan DeDupe SG family is offered in six configurations and available immediately through Nexsan's worldwide channel partner network starting at $49,000 U.S. To learn more about channel partner opportunities, visit Nexsan's partner information site at http://www.nexsan.com/reseller_signup.php.

About FalconStor Software, Inc.

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(TM) 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-optimized replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including 3Com, Acer, COPAN Systems, Data Direct Networks, Dynamic Solutions International, EMC, IBM, Pillar Data Systems, Spectra Logic 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 www.falconstor.com or call 1-866-NOW-FALC (1-866-669-3252).

About Nexsan Technologies

Nexsan Corporation is a leading provider of energy-efficient, long-term storage systems. Nexsan delivers secure storage appliances and modular, capacity-optimized disk-storage systems for a broad range of applications including fixed-content storage and archiving, email, medical imaging, compliance and litigation support, disk-based backup, digital video security, and rich media. Nexsan's solutions are the choice of small and medium-sized companies as well as large global enterprises and major governmental agencies around the world who are seeking cost-correct, high-density storage solutions. Founded in 1999 and based in Thousand Oaks, Calif., Nexsan sells its products exclusively through a select global network of VARs, OEMs and system integrators. For more information about Nexsan's products, please see the company's website at www.nexsan.com.

Nexsan is a registered trademark and AutoMAID is a trademark of Nexsan Technologies. FalconStor, FalconStor Software and IPStor are registered trademarks and TOTALLY Open is a trademark of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.