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FalconStor Teams With Chunghwa Telecom HiNet to Provide Business Protection and Disaster Recovery Services for Small and Medium-Sized Business

Posted on: Tuesday, 11 April 2006, 00:00 CDT

Chunghwa Telecom HiNet's Broadband Infrastructure, Powered by IPStor Software and PrimeVault, Bring Innovative, Proven Data Protection & Recovery Services to Taiwan's SMB

FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage software solutions, today announced that its award-winning IPStor(R) technology and PrimeVault(sm) business model have been chosen by Chunghwa Telecom HiNet (NYSE: CHT), Taiwan's largest information and telecom service provider, to power Chunghwa Telecom HiNet's data protection services targeting small and medium-sized business (SMB) in Taiwan. This collaboration represents another milestone in the long-standing partnership between the two companies since the 2001 deal with HiNet hiStorage, the storage service subsidiary of Chunghwa Telecom HiNet.

By incorporating FalconStor technologies, Chunghwa Telecom has augmented its broadband and storage infrastructure with FalconStor Continuous Data Protection (CDP) solutions, enabling the rollout of subscription-based data protection and disaster recovery services. Chunghwa Telecom will team with FalconStor to offer a series of turn-key CDP Appliances, powered by the Intel storage solution, to help SMB protect their business-critical data locally as well as replicating them to Chunghwa Telecom's IDC hiStorage disaster recovery site over a broadband network.

"SMB often neglect to address the issue of business continuity, and today's announcement offers them a practical solution that brings enterprise functionality within their reach," said Dr. Lang Chee Chang, Vice President of Chunghwa Telecom. "Not only with local backup, but also with remote disaster recovery, the partnership with FalconStor enhances our goal to become an all-around DR solution service provider, and represents a win-win-win situation for protecting customer data."

The FalconStor PrimeVault model provides customers with instant emergency planning - each customer is equipped with either FalconStor DiskSafe(TM) or FileSafe(TM) software for their local machines to drive fast backup to a CDP Appliance located at their site, and pre-loaded with FalconStor storage software. Data is remotely replicated by the CDP Appliance to the Chunghwa Telecom HiNet facility, keeping local and remote DR data, without any impact to a business' production environment.

The DR Solution provided by Chunghwa Telecom HiNet IDC hiStorage relieves the customer from the tediousness of backup operations, with data recovery occurring far more easily and smoothly compared to a traditional DR system. The CDP Appliance offered in this service model will replicate data over iSCSI to Chunghwa Telecom HiNet's disaster recovery data center, anti-earthquake rated, and located in Taiwan for remote backup and disaster recovery.

"Storage management and network bandwidth are the challenging IT issues our business faces, from a budgetary and resource perspective," said Stanley Wu, senior manager, management information system of Kuang Chuan Dairy Co. Ltd, 10 Year Crystal Prestige Award Winner by Monde Selection International Institute. "With the FalconStor PrimeVault service of Chunghwa Telecom HiNet IDC hiStorage, we can now be confident that our data is fully protected and no longer at risk."

"It is paramount for organizations of all sizes to realize the need to address the issue of disaster recovery and business continuity by having a remote set of data on standby," said ReiJane Huai, Chairman and CEO of FalconStor. "With the cost and manual labor factors for SMB mitigated by today's news with Chunghwa Telecom HiNet, the data protection functionality available for enterprises are now very feasible for most SMB in Taiwan."

"FalconStor is a member of the Intel(R) Storage Community, and their alliance with Chunghwa Telecom demonstrates that both companies share Intel's commitment to making cost-effective storage solutions easier to deploy and manage," said Mike Wall, general manager, Intel Storage Group Marketing. "FalconStor and Chunghwa Telecom are delivering PrimeVault service powered by Intel storage solutions to a broader range of IT users."

About Chunghwa Telecom Co., Ltd. Data Communication Branch (HiNet)

Chunghwa Telecom HiNet provides predominant broadband network service, substantial infrastructure, and fast and reliable service, becoming the provider of choice for Internet users in Taiwan. HiNet IDC's data center not only has the advantage ample bandwidth and facilities, it has also been certificated by ISO9001 and BS7799. HiNet has also been rewarded 'MIS Best Choice' by the Institute for Information Industry, evidence that the service from HiNet IDC has reached international standards. Many large enterprises have placed their trust and mainframes in Chunghwa Telecom, and the outcome of this has accelerated the speed for data transformation between firms. For the further information, please visit www.hinet.net.

About FalconStor

FalconStor Software, Inc. (Nasdaq: FALC) is the premier developer of adaptive data protection solutions that optimize data center efficiency and business continuity for all IT infrastructures. The company's award-winning storage virtualization, continuous data protection (CDP), disaster recovery, and virtual tape library (VTL) solutions integrate seamlessly to ensure rapid data recovery and simplified storage management. Its products are available from major OEMs, system integrators, and resellers, and are deployed worldwide by governments, educational institutions, and Fortune 1000 enterprises across industries including aerospace, energy production, financial services, healthcare, law, manufacturing, and telecommunications.

FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. FalconStor is an active member of the Storage Networking Industry Association (SNIA) and Fibre Channel Industry Association (FCIA). For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252).

This press release includes forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include: delays in product development; market acceptance of FalconStor's products and services; technological change in the storage and networking industries; competition in the network storage software market; the potential failure of FalconStor's OEM partners to introduce or to market products incorporating FalconStor's products; intellectual property issues; and other risk factors discussed in FalconStor's reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission.

FalconStor, FalconStor Software, IPStor, DiskSafe and FileSafe are trademarks or registered trademarks, and PrimeVault is a servicemark of FalconStor Software, Inc. All other company and product names contained herein may be trademarks of the respective holders.

Source: Business Wire

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