Crossroads Systems Secures IP-Backed Financing From Fortress Investment Group

Crossroads Systems Secures IP-Backed Financing From Fortress Investment Group 
AUSTIN, TX -- (Marketwired) -- 07/24/13 --  Crossroads Systems, Inc.
(NASDAQ: CRDS), a global provider of data archive solutions,
announced today that it has secured a $10 million credit facility
backed by a portion of its intellectual property (IP) portfolio, from
an affiliate of Fortress Investment Group (NYSE: FIG), a leading
global investment firm with approximately $56 billion in assets under
Richard K. Coleman, Jr., Interim President and Chief Executive
Officer at Crossroads Systems, said, "We are pleased that Fortress
recognizes the untapped value of our IP. Crossroads has a proven
record of generating IP revenue, recognizing more than $60 million in
license fees. The Fortress financing is an important component of
Crossroads' previously announced strategy to access capital through
the monetization of our patent portfolio, and underscores the value
of our extensive IP portfolio."  
Eran Zur, Managing Director and Head of the Intellectual Property
Finance Group at Fortress Investment Group, said, "Crossroads has
demonstrated a history of successful intellectual property creation
and Fortress is excited to help fund Crossroads' future growth."  
As a condition of the credit agreement, Crossroads will issue to
Fortress 1,454,545 warrants to purchase common stock. The warrants
are exercisable at an initial conversion price of $2.0625 per share,
subject to anti-dilution adjustments. National Securities
Corporation, a wholly owned subsidiary of National Holdings
Corporation (OTCBB: NHLD), acted as an advisor to Crossroads Systems
on the transaction. 
About Crossroads Systems 
 Crossroads Systems, Inc. (NASDAQ: CRDS) is
a global provider of data archive solutions. Through the innovative
use of new technologies, Crossroads delivers customer-driven
solutions that enable proactive data security, advanced data
archiving, optimized performance and significant cost-savings.
Founded in 1996 and headquartered in Austin, TX, Crossroads holds
more than 100 patents and has been honored with numerous industry
awards for data archiving, storage and protection. Visit 
About Fortress Investment Group
 Fortress Investment Group LLC is a
leading, highly diversified global investment firm with approximately
$56 billion in assets under management as of March 31, 2013. Founded
in 1998, Fortress manages assets on behalf of more than 1,500
institutional clients and private investors worldwide across a range
of private equity, credit, liquid hedge funds and traditional asset
management strategies. Fortress is publicly traded on the New York
Stock Exchange (NYSE: FIG). Visit  
Important Cautions Regarding Forward-Looking Statements 
 This press
release includes forward-looking statements that relate to the
business and expected future events or future performance of
Crossroads Systems, Inc. and involve known and unknown risks,
uncertainties and other factors that may cause its actual results,
levels of activity, performance or achievements to differ materially
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking
statements. Words such as, but not limited to, "believe," "expect,"
"anticipate," "estimate," "intend," "plan," "targets," "likely,"
"will," "would," "could," and similar expressions or phrases identify
forward-looking statements. Forward-looking statements include, but
are not limited to, statements about Crossroads Systems' ability to
implement its business strategy, including the transition from a
hardware storage company to a software solutions and services
provider, its ability to expand its distribution channels, its
ability to maintain or broaden relationships with existing
distribution channels and strategic alliances and develop new
industry relationships, the performance of third parties in its
distribution channels and of its strategic alliances, its ability to
achieve or maintain profitability, its ability to generate revenue
from licensing and enforcement activity and its ability to create new
sources of intellectual property revenue. The future performance of
Crossroads Systems may be adversely affected by the following risks
and uncertainties: uncertainties relating to product development and
commercialization, uncertain market acceptance of Crossroads Systems
products, including StrongBox, intense competition in the data
protection and storage markets, variations in quarterly results and a
consequence of unpredictable sales cycles and other factors, the
ability to obtain, maintain or protect patent and other proprietary
intellectual property rights, technological change in the industry,
future capital requirements, success or failure of licensing and
enforcement activity alone or with strategic partners, regulatory
actions or delays and other factors that may cause actual results to
be materially different from those described or anticipated by these
forward-looking statements. For a more detailed discussion of these
factors and risks, investors should review Crossroads Systems'
reports on Form 10-K and Form 10-Q filed with the Securities and
Exchange Commission, which can be accessed through the SEC's website
or by clicking "SEC Filings" on the company's Investor Relations
website at Forward-looking
statements in this press release are based on management's beliefs
and opinions at the time the statements are made. Crossroads Systems
undertakes no duty to update this information to reflect future
events, information or circumstances. 
Copyright2013 Crossroads Systems, Inc., Crossroads and Crossroads
Systems are registered trademarks of Crossroads Systems, Inc. All
trademarks are the property of their respective owners. All
specifications are subject to change without notice. 
Crossroads Company Contact: 
Jennifer Crane 
Crossroads Systems 
512.928.6897 or 800.643.7148  
Crossroads Investor Contact: 
Mark Hood
Crossroads Systems 
Crossroads Press Contact: 
Matthew Zintel 
Zintel Public Relations 
Fortress Company Contact:
Gordon E. Runte
Fortress Investment Group 
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