FalconStor Teams With Avnet Embedded to Create Global Supply Chain

FalconStor Teams With Avnet Embedded to Create Global Supply Chain

Avnet Embedded to Integrate FalconStor's Data Protection Software With IBM and
Dell Appliances for Customers Worldwide

MELVILLE, N.Y., June 3, 2013 (GLOBE NEWSWIRE) -- FalconStor Software, Inc.
(Nasdaq:FALC), a market leader in disk-based data protection, today announced
an agreement with Avnet Embedded, a division of Avnet Electronics Marketing
Americas, a business region of Avnet, Inc. (NYSE:AVT), for worldwide
integration and order fulfillment of FalconStor solutions. In moving to a
global supply chain operation with Avnet Embedded, FalconStor enhances its
ability to scale quickly and efficiently to meet customers' demand for its
data protection solutions.

Avnet Embedded will support FalconStor's new partnership with IBM to bundle
FalconStor^® Virtual Tape Library (VTL) with deduplication on IBM servers and
storage to address the IBM midmarket customers, starting in North America (see
related announcement, "IBM and FalconStor Team Up to Create Backup Appliance
for the Midmarket"). In addition, Avnet Embedded will take over the
integration and testing of FalconStor's product suite – including FalconStor^®
Network Storage Server (NSS), FalconStor^® Continuous Data Protector (CDP),
and FalconStor VTL – on Dell appliances worldwide.

"This broad relationship with Avnet allows us to better serve our customers in
every region by allowing us to expand our offering of appliance platforms and
to deliver products quickly anywhere in the world," said Gary Quinn, chief
operating officer at FalconStor Software. "Avnet has the systems integration
and distribution services that will help us ramp up production to meet the
increasing demand for comprehensive data protection solutions that make
business-critical IT services continuously available."

Avnet, one of the largest global distributors of electronic components,
computer products and embedded technology, will fulfill orders for FalconStor
solutions from its worldwide integration centers to service the Americas,
Europe and Asia-Pacific. This will reduce shipping costs while providing
better delivery service to FalconStor's customers, allowing them to get up and
running faster. Avnet Embedded's integration expertise and relationships with
multiple technology suppliers, such as Dell and IBM, will enable FalconStor to
deliver complete solutions on industry leading platforms to customers around
the world at lower costs while increasing production volume.

"By integrating FalconStor products with an array of server and storage
systems from top tier vendors, we offer FalconStor customers their choice of
hardware platforms for the best performing data protection and storage
virtualization appliances for any data center on the planet," said Chuck
Kostalnick, senior vice president, Avnet Embedded. "Business continuity and
disaster recovery solutions are a priority for companies across the globe, and
our established integration centers allow us to scale immediately to meet the
needs of FalconStor channel partners and customers."

Through consolidating its global supply chain with Avnet Embedded, FalconStor
captures efficiencies and operational savings in cost of goods, supply chain
management and order fulfillment. The partnership with Avnet Embedded signals
FalconStor's ability to expand the production volume and market penetration of
its complete data protection solutions.

About FalconStor Software

FalconStor Software, Inc. (Nasdaq:FALC) is a market leader in disk-based data
protection. The company's mission is to transform traditional backup and
disaster recovery into next-generation service-oriented data protection. Built
upon an award-winning platform, FalconStor solutions deliver disk-based
backup, continuous data protection, WAN-optimized replication and disaster
recovery automation. FalconStor solutions are available through a worldwide
network of partners, including solution providers, top-tier strategic partners
and major OEMs. Thousands of customers worldwide, from small businesses to
Fortune 100 enterprises, entrust their data to FalconStor solutions.
FalconStor maintains headquarters in Melville, N.Y., and offices throughout
Europe and the Asia Pacific region. For more information, visit
www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

FalconStor and FalconStor Software are registered trademarks 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.

Links to websites or pages controlled by parties other than FalconStor are
provided for the reader's convenience and information only.FalconStor does
not incorporate into this release the information found at those links nor
does FalconStor represent or warrant that any information found at those links
is complete or accurate.Use of information obtained by following these links
is at the reader's own risk.

CONTACT: Roman Kichorowsky
         FalconStor Software, Inc.
         631-773-4303
         roman.kichorowsky@falconstor.com
        
         Kathryn Ghita
         Metis Communications
         617-236-0500
         falconstor@metiscomm.com

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