Herman Chin, FalconStor Software, Inc
631-962-1163
Herman.Chin@FalconStor.com
Georgiana Comsa, MaXXan Systems, Inc.
408-382-6423
georgiana_comsa@MaXXan.com

MaXXan and FalconStor Team to Deliver Powerful Business Continuity and Storage Consolidation Solutions

MELVILLE, N.Y., and SAN JOSE, Calif., April 24, 2003 ó MaXXan Systems, Inc. (www.MaXXan.com), a leading innovator of intelligent storage network infrastructure products, and FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage infrastructure software solutions, today announced their plans to deliver FalconStorís IPStorÆ suite of storage management software on MaXXanís I/O optimized hardware platform. The integrated MaXXan Storage Appliance™ powered by FalconStor IPStor software will be offered in two forms, the SA100f™ and the SA200f™, which leverage the embedded application card technology developed for MaXXanís MXV320ô intelligent switch platform.

The SA100f is a standalone system that can be deployed with any SAN infrastructure and is compatible with Fibre Channel switches from any vendor. The SA200f is a bladed version designed to occupy a slot in MaXXanís MXV320 SAN switch. Both solutions enable enterprise-class users to quickly consolidate and deploy comprehensive storage services including data replication, virtualization, as well as accelerated backup and recovery with high degrees of availability, reliability, flexibility, and stability.

"We applaud MaXXan's initiative in developing an intelligent switch that can fully utilize the powerful technology of IPStor to offer the services required by customers to enhance their storage infrastructure," said ReiJane Huai, chairman and CEO of FalconStor Software. "FalconStor's goal is to leverage a SAN for efficient and cost-effective delivery of storage services. The integrated solutions being launched with MaXXan are an excellent vehicle for achieving this goal. We will work closely with MaXXan to jointly promote and market the integrated solution on a worldwide basis, in addition to providing the service and support needed by our mutual customers. Our respective support teams have been trained to assist customers in their search for superior business continuity and storage consolidation solutions. Information regarding the MaXXan Storage Appliance is currently available on our website."

"FalconStor and MaXXan share an innovative vision of enabling intelligent application services in storage networks," said Vic Mahadevan, president and chief executive officer of MaXXan Systems. "FalconStor is a market leader in developing storage services for enterprise applications to simplify management, ensure data availability and recovery, and maximize performance. With the launch of the MXV320 at the beginning of the year, MaXXan is the first company to market an intelligent switch capable of delivering high-level storage applications as services of the network. Our relationship with FalconStor enables us to combine our complementary technologies to offer customers end-to-end storage solutions that provide a wide range of powerful features and fulfill our common vision."

MaXXan and FalconStor will be offering first-hand demonstrations of the Storage Appliance powered by IPStor software at the Storage World Conference in Anaheim, May 5 to 8, in MaXXanís booth 411.

About MaXXan's Storage Appliances
With dual Intel Xeon processors, 10 Fibre Channel interfaces, 2 Gigabit Ethernet interfaces, 4 independent PCI-X busses, support for up to 12 GB of memory and an embedded Linux operating system, the MaXXan Storage Appliance can be deployed as a free standing 2u rack mounted appliance (SA100f) or as an embedded application card (SA200f) in MaXXan's MXV320 intelligent switch. MaXXan's embedded operating system is enhanced with features that support the demands of enterprise computing environments such as redundant BIOS and operating system images and an apply/commit/rollback mechanism for performing software upgrades. In addition, the Storage Appliances implement high availability features like active/active failover cluster, redundant, hot-pluggable power supplies and fans.

The integration of FalconStorís IPStor software with MaXXan's hardware and enhanced Linux operating system provides seamless connectivity to end-usersí existing data center or business site infrastructure and permits the use of storage systems from a variety of third-party vendors. The advanced storage services offered by IPStor include snapshot, replication, active-active failover, mirroring, TimeMark™, virtualization and storage service enablers, as well as a variety of client and agent software.

About FalconStor IPStor Software
IPStor software delivers an intelligent SAN/NAS infrastructure across heterogeneous environments by providing a comprehensive set of storage services for enterprise applications - simplifying management, ensuring data availability and recoverability, and improving I/O performance, while reducing total cost of ownership and maximizing return on investment.

About MaXXan Systems, Inc.
MaXXan Systems, Inc. is delivering intelligent enterprise storage networks that bring simplicity, scalability, and performance to heterogeneous environments while protecting customers' investments. The Company's next-generation networking solutions offer unprecedented consolidation to reduce the cost of deployment, management and ownership of today's complex storage networks. For more information call (866) 4-MAXXAN or visit MaXXan's website at www.MaXXan.com.

About FalconStor Software, Inc.
FalconStor Software, Inc. (Nasdaq: FALC), is a leading developer of network storage infrastructure software solutions designed to optimize the performance and availability of today's complex IT infrastructures. Deployed by a wide range of Fortune 1000 enterprises, FalconStor's flagship product, IPStor, optimizes storage utilization, accelerates backup and recovery, maximizes I/O performance and ensures business continuity via sophisticated data replication services. It is available and supported through major OEMs, system integrators and resellers worldwide.

Founded in 2000, FalconStor is headquartered in Melville, NY, with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Technical Support Alliance Network (TSANet), Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information visit www.falconstor.com or call 1-631-777-5188.