FalconStor Clears Storage Picture for Norddeutscher Rundfunk; Hamburg-Based Media Broadcaster Deploys IPStor Software for Efficient Backup and Recovery and High Data Availability

"We wanted to improve our backup and recovery operations, and wewere looking for a storage solution that not only provided maximumdata uptime, but could also manage the heterogeneous platforms andapplications in our IT environment," said HansNorbert Heinsen, systemplanner, Norddeutscher Rundfunk. "IPStor software's innovativeapproach has given us more features at lower cost, and has immediatelysaved us 30 percent of our planned expenditure. We were very impressedwith IPStor's flexibility, as it has enabled us to achieve more thanour initial goals of implementing a sound data protection strategy."

Important to NDR was accelerating backup and recovery, andeliminating all possible Single Point Of Failure (SPOF)vulnerabilities in its previous IT infrastructure. NDR's initial goalwas to acquire a new backup infrastructure, but the additionalfeatures and the cost-effectiveness of the IPStor solution made it theobvious choice for the broadcaster.

NDR was able to incorporate its previous storage investments inits new IT environment, now consisting of a 2Gb Fibre Channel SAN,with servers from Digital, Fujitsu Siemens and HP running Oracle, SAP,SQL and VMWare applications on Microsoft Windows, Linux, Tru64 and SunSolaris platforms. Storage subsystems include EMC CLARiiON, HPStorageWorks and Infortrend EonStor. The IPStor solution is enablingNDR's staff of four IT administrators to manage 21 servers and about10 terabytes of data, at a growth rate of 30 percent a year.

NDR is leveraging several optional IPStor software features.TimeMark(R), working in conjunction with its database Snapshot Agentfor Oracle, provides snapshots with transactional integrity andpoint-in-time consistency during data replication for instant recoveryto a known good point in time. In conjunction with the ZeroImpact(TM)Backup option, TimeMark enables NDR to use its existing backupsoftware to perform full, incremental, and differentialbackup/restore, something its backup software cannot offer alone.

NDR is also using the DynaPath(R) Agent, which maximizes dataavailability across the SAN by performing load-balancing, transparentfailover, and fail-back services so that application servers canmaximize availability and performance, with no single point of failurein NDR's SAN.

"Resilient storage environments are essential for leading mediaorganizations, such as Norddeutscher Rundfunk, to protect theirhigh-volume data operations," said Guy Berlo, regional director,central region, FalconStor. "NDR wanted a solution to solve itsstorage challenges, while flexible enough to meet future storagerequirements, and their choice of an IPStor-powered solution hasenabled them to cost-effectively manage their storage resources, whileimproving the efficiency of their operations."

About Norddeutscher Rundfunk (NDR)

Norddeutscher Rundfunk (NDR) is a modern media corporation basedin Hamburg with an attractive as well as successful radio andtelevision programme in northern Germany. It was established in 1955by treaty with the federal states Hamburg, Schleswig-Holstein andLower Saxony. In 1992, after the reunification of Germany, the stateMecklenburg-Western Pomerania was included.

The NDR, a public non-profit broadcaster financed by compulsorylicense fees, is run in the interests of its viewers and listeners. Itis independent of the state, political parties and social groups. Itstransmitter maintains national radio houses as well as studios andKorrespondentenbueros, which produce regional radio and televisionprograms for the Lands of the Federal Republic. For more information,visit www.ndr.de.

About Itiso GmbH

Based in Hattingen, Germany, Itiso architects and consultants haveover 50 years experience together in the DESIGN and the implementationof complex server and storage solutions with international, enterprisecustomers. Itiso solutions include disaster recovery, storagevirtualization, backup and recovery, digital archiving, as well asproject management. For more information, visit www.itiso.de.

About FalconStor

FalconStor Software, Inc. (Nasdaq: FALC) is a leading developer ofinnovative network storage software that optimizes the protection andavailability of enterprise and SMB data and applications, ensuringnonstop business productivity while simplifying storage and backupmanagement to reduce operational costs. FalconStor's award-winningsolutions--IPStor(R) Enterprise Edition, VirtualTape Library, andiSCSI Storage Server--are available from major OEMs, systemintegrators, and resellers, and are deployed worldwide by governments,educational institutions, and Fortune 1000 enterprises acrossindustries including aerospace, energy production, financial services,healthcare, law, manufacturing, and telecommunications.

FalconStor is headquartered in Melville, NY, with officesthroughout Europe and the Asia Pacific regions including Paris, Tokyoand Taiwan. FalconStor is an active member of the Technical SupportAlliance Network (TSANet), Storage Networking Industry Association(SNIA) and Fibre Channel Industry Association (FCIA). For moreinformation, visit www.falconstor.com or call 1-866-NOW-FALC(866-669-3252).

This press release includes forward-looking statements thatinvolve risk and uncertainties that could cause actual results todiffer materially from the forward-looking statements. These risks anduncertainties include: delays in product development; marketacceptance of FalconStor's products and services; technological changein the storage and networking industries; competition in the networkstorage software market; the potential failure of FalconStor's OEMpartners to introduce or to market products incorporating FalconStor'sproducts; intellectual property issues; and other risk factorsdiscussed in FalconStor's reports on Forms 10-K, 10-Q and otherreports filed with the Securities and Exchange Commission.

FalconStor, IPStor, TimeMark, ZeroImpact and DynaPath aretrademarks or registered trademarks of FalconStor Software, Inc. Allother company and product names contained herein may be trademarks ofthe respective holders.