Demonstrate 750% Transaction Increase

EL SEGUNDO, Calif. – September 17, 2002 - Imperial Technology, the company accelerating application performance, announced today a strategic partnership expanding on the existing reseller agreement with FalconStor Software, Inc. (NASDAQ: FALC).  Imperial's SANaccelerator can be included in FalconStor’s IPStor network storage infrastructure to deliver IO performance in transaction-oriented SAN's.

“Very impressive,” said Dave Fisk, Chief Scientist at Imperial Technology.  “We’ve been conducting extensive testing in our Interoperability lab and we’ve been able to demonstrate up to a 750% performance improvement in random write environments simulating a typical relational database application.  Response times decreased from 13 milliseconds average to a consistent 2 milliseconds by using IPStor and our MegaRam SSD.

“Greater than 50% of all storage going into larger enterprises today is being implemented in SANs.  Combining Imperial’s MegaRam SSD and FalconStor’s IPStor empowers SANs to deliver the true benefits users have been dreaming about,” said Arun Taneja, senior analyst at Enterprise Storage Group.

The inherent flexibility of IPStor allows the MegaRam SSD to be used as a Network Persistent Cache and deliver significant advantage in two ways – first, IPStor can use the SAN-based SSD to cache Write commands significantly faster than traditional disk storage subsystems.  Second, IPStor policies are established wherein IPStor relocates “Hot” disk segments to the SSD based on access patterns while less accessed disk segments remain in traditional Disk Storage.  This “Hot Zone” capability will be of particular interest to many enterprises as it is self-tuning based on Policy and can be deployed within a SAN to cache high transaction data in both homogeneous and heterogeneous environments."

“SSDs are an ideal persistent cache to maximize storage speed, and to store the most frequently accessed blocks in a mixed RAID and JBOD storage environment,” said Wayne Lam, FalconStor vice president.  “IPStor intelligently and automatically makes use of higher-tier storage to maximum their utilization.  FalconStor is happy to be working with Imperial to maximize SSD usage within customer storage infrastructures."

About Imperial Technology, Inc.
Headquartered in El Segundo, Calif., Imperial Technology, the company known for accelerating application performance, has over twenty years experience designing and manufacturing high-performance storage systems that shatter I/O bottlenecks.  Imperial SSDs integrate seamlessly in virtually every IT environment.  Imperial Technology information is available at www.imperialtech.com or by calling 1-310-536-0018. 

About FalconStor
FalconStor Software, Inc. (Nasdaq: FALC), offers network storage infrastructure software that dramatically reduces storage operating costs by aggregating and provisioning storage capacity and management services over Fibre Channel and IP-based storage networks. With unprecedented reliability, performance, manageability, and availability, FalconStor’s flagship product, IPStor™, enables leading IT organizations and Service Providers to deploy a highly available network storage infrastructure to ensure business continuity.

Founded in 2000, FalconStor is headquartered in Melville, NY. International offices include Paris, Tokyo and Taichung, Taiwan. FalconStor is a voting member of the Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information, visit www.falconstor.com or call 1-631-777-5188.

###