FalconStor Unveils OEM Deal with MiTAC to Deliver Turn-Key

Enterprise-Class Data Protection Appliance for SMB Market 
MELVILLE, N.Y.--(BUSINESS WIRE)--March 7, 2006
FalconStor Software, Inc. 
Leading Taiwan-Based Innovative Designer, Manufacturer and Service
Provider Incorporates FalconStor IPStor(R) Platform with Intel's
Xscale System-On-Chip Technology to Address Needs of SMB and SOHO
Customers 
FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of
network storage software solutions, and MiTAC International Corp.
(TSE: 2315), a leading innovative designer, manufacture and service
provider, today announced an OEM agreement to bring to market a
turn-key storage and data protection appliance. Targeted at
small-to-medium business (SMB) and small office/home office (SOHO)
users, this offering leverages FalconStor's award-winning IPStor(R)
technology as well as Intel's Xscale System-On-Chip (SOC) technology. 
Under the agreement, FalconStor will optimize IPStor, a
comprehensive suite of enterprise class storage services, to run on
the MiTAC SOC platform. SOC technology is designed for extremely low
power consumption and high performance processing power. By combining
SOC and IPStor technology. FalconStor and MiTAC will provide the
SMB/SOHO market with enterprise-class data protection capabilities in
an affordable, easy-to-use turn-key appliance. 
"The partnership with FalconStor enables us to deliver a true plug
and play data protection appliance for the SMB and SOHO markets," said
Robert Yang, VP of MiTAC International Corp. "Small business owners
want a low cost, ease-of-use, and reliable solution that keeps their
information secure and allows them to leverage their existing IP
network without adding management headaches." 
"MiTAC's industry leading designing and manufacturing technology
complements our core IPStor family of products and services to provide
the best available solution for continuous data protection needs for
SMB customers," said Eric Chen, VP and GM of APAC, FalconStor.
"Partnering with industry leaders like MiTAC broadens our solutions
suite of award winning products and gives our customers the tools they
need to meet and scale their changing data protection requirements." 
About MiTAC 
Mitac International Corp., established in 1982 and headquartered
in Taiwan, a listed company in Taiwan Stock Exchange having three
major business units: (1) digital system (including desktop computer,
digital home entertainment product); (2) professional enterprise
system (including workstation, servers and storage equipment) and (3)
mobile communication device (handheld GPS device, smart phone, mobile
entertainment device). There are more than 25,000 employees worldwide
with overseas operations in the US, UK, Germany, Belgium, Japan,
China. It's vertical integration manufacturing mega sites are located
in China, including Mitac (Shunde) in Guangdong province focusing on
motherboard, desktop computer and server production, while MiTAC
(Kunshan) in Jiangsu province centered on the production of mobile
communication products. More than 1500 R&D engineering and 3% of R&D
expenses over sales invested in the product innovation, MiTAC
International Corp. has been continuously recognized as a leader in
technology innovation. Moreover, the company specializes in the
production of quality-designed, user friendly and stylish IT, consumer
electronic, and communication products. For more information, please
go to www.mitac.com 
About FalconStor 
FalconStor Software, Inc. (Nasdaq: FALC) is the premier developer
of adaptive data protection solutions that optimize data center
efficiency and business continuity for all IT infrastructures. The
company's innovative storage virtualization, continuous data
protection (CDP), disaster recovery, and virtual tape library (VTL)
solutions integrate seamlessly to ensure rapid data recovery and
simplified storage management. Available from major OEMs, system
integrators, and resellers, FalconStor products - including
award-winning IPStor(R) and VirtualTape Library software - 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, New York, with offices
throughout Europe and the Asia Pacific region. FalconStor is an active
member of the Storage Networking Industry Association (SNIA) and Fibre
Channel Industry Association (FCIA). For more information, visit
www.falconstor.com or call 1-866-NOW-FALC (866-669-3252). 
This press release includes forward-looking statements that
involve risk and uncertainties that could cause actual results to
differ materially from the forward-looking statements. These risks and
uncertainties include: delays in product development; market
acceptance of FalconStor's products and services; technological change
in the storage and networking industries; competition in the network
storage software market; the potential failure of FalconStor's OEM
partners to introduce or to market products incorporating FalconStor's
products; intellectual property issues; and other risk factors
discussed in FalconStor's reports on Forms 10-K, 10-Q and other
reports filed with the Securities and Exchange Commission. 
FalconStor, and IPStor are registered trademarks of FalconStor
Software, Inc. All other company and product names contained herein
may be trademarks of the respective holders. 
CONTACT:
FalconStor Software, Inc.
Sabrina Sanchez, 925-875-1968
sabrina.sanchez@ventanapr.com
 
 
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