New CryptoStor for Tape Addresses Stored Data Protection for Secondary Storage Applications Covering DAS, NAS and SAN Markets; Enters Beta Teste

MILPITAS, CA (October 21, 2002) - NeoScale Systems, Inc., a provider of enterprise storage security solutions for the burgeoning network storage market, introduced CryptoStor™ for Tape; an enterprise-class tape data protection appliance. CryptoStor enables companies to readily achieve strong, policy-based encryption and authentication for networked, remote and direct-attached tape and virtual tape systems. Operating as an inline appliance, the solution transparently integrates with leading backup applications and offers both unattended and distributed deployment. CryptoStor for Tape has entered beta testing for corporate users, system integrators, and managed service providers.

"Tape plays a tremendous role in the storage industry as a form of disaster recovery – providing tiered and distributed backup, local and remote recovery, long term archive, and vaulting applications which span business size and storage infrastructure. The industry widely recognizes secondary storage tape media as posing an immediate data theft risk," said Jamie Gruener, senior analyst at Yankee Group. "NeoScale's new product offering provides a uniquely scalable, deployable, and recoverable tape privacy solution that complements both direct attached and networked backup storage data protection strategies."

Tape at Risk

According to IDC Research, the market for backup and disaster recovery is expected to grow 74% (CAGR) through 2004 – a majority of which employs tape media. A recent Freeman Report indicated that LTO media revenue showed a 280% annual gain. Tape media is widely used for backup, disaster recovery and bulk data transport by major corporations, small to medium sized companies, managed service providers, and service bureaus. It is common for data to be stored on open systems tape "in the clear." In many cases, proprietary data stored on tape is in simple retrievable text format –- despite broad exposures and liabilities. In addition, backup tape can enable whole applications to be rebuilt. While enterprises have implemented access controls and tighter infrastructure management provisions, such safeguards do not encompass the tape itself – removable media can be lost, stolen or compromised.

CryptoStor for Tape

CryptoStor for Tape is the first enterprise class data protection and privacy appliance for tape media. The 1U rack-mountable, in-line appliance can be placed in front of tape subsystems with either FC Fabric or direct attached connections. Multiple backup privacy polices can be centrally managed to support shared, distributed, unattended and vaulted tape applications. NeoScale CryptoTape™ technology automates tape encryption, authentication and secure data management. Other features include:

• Web GUI wizard to streamline remote installation, management, and policies
• 3DES / AES encrypt options for unique, pooled or shared media
• Secure key and data management with Smartcard support
• Media protection without requiring host agents or hard coded internal keys

"Enterprises are expanding their secondary storage infrastructure to achieve greater availability, integrity and economies. These processes, while reducing operational risks, may increase the unauthorized exposure to business critical data," said Aseem Vaid, CEO and co-founder of NeoScale Systems. "CrytoStor for Tape provides an immediate, flexible and highly manageable means for tape media confidentiality. It offers a cost-effective means to lower the liability burden associated with data protection."

Cambridge Computer Backing Tape Data Protection

Jacob Farmer, founder and CTO of Cambridge Computer Inc., a leading integrator of storage networking and backup technologies, expects CryptoStor for Tape to add security to his backup sales and services portfolio, especially for customers and prospects storing sensitive, regulated and trusted data on tape with internal and third-party vaulting.

"Tapes provide fertile ground for data theft given that poor tape media management, delivery and controls are commonplace. Even companies using third party services to store their tapes off site, may not fully appreciate the consequences should those tapes accidentally fall into the wrong hands," said Farmer. "CryptoStor is the most robust tape-centric data protection product I have seen. The capabilities can adapt and scale to meet a variety of customer requirements which makes it an attractive add-on for new and existing backup systems."

Beta Product Availability

NeoScale has begun shipping beta units of its CryptoStor for Tape data protection appliance to select corporate customers, systems integrators, and tape library vendors. The company has completed initial interoperability testing with leading storage backup application and tape library vendors – spanning SAN, NAS and direct-attached secondary storage. General availability is expected in early Q1-2003. Organizations interested in beta testing the product should contact the company by phone at (408) 586-1300 or by email at sales@neoscale.com. NeoScale will be participating in the SNIA Interoperability and Solution Demo pavilion at Storage Network World later this month.

About NeoScale

Founded in June 2000, NeoScale Systems is a leading provider of enterprise storage security solutions which provide robust, cost-effective data protection for networked storage. NeoScale offers a family of wire-speed, policy-based storage security appliance that delivers strong network storage and media privacy. NeoScale is backed by Bay Partners and LightSpeed Venture Partners, two top tier venture capital firms specializing in network infrastructure. NeoScale is located at 1500 McCandless Drive, Milpitas, California, 95035. The company can be reached by telephone at (408) 586-1300, by email at info@neoscale.com or on the Web at http://www.neoscale.com.