FalconStor Software's Wendy Petty Named a 2008 Storage Channel Chief by CRN

FalconStor Software, Inc. (NASDAQ: FALC), the only provider of TOTALLY Open™ network storage solutions, today announced that Wendy Petty, Vice President of North American Sales, has been named a Channel Chief in the storage category by CRN. The CRN awards recognize individuals whose efforts have driven sales by empowering VARs and technology integrators with the products, support and solutions they need to generate demand and grow revenue within the channel. "I am honored and grateful for this recognition from CRN,” said Ms. Petty. "It is a tribute to our channel that FalconStor is experiencing record growth, fueled by great product positioning, increased opportunities and our partners’ many customer wins. Over the last year we've seen our average deal size increase by 40-50% per partner. I feel that receiving this award is further recognition of FalconStor’s strong channel focus and our complete dedication to our channel partners’ success.” FalconStor, whose business model is totally channel-focused, works hand in hand with its partners through its Solution Provider Program to provide the innovative products, programs and tools needed for partners to successfully market, sell and deploy solutions to customers. With FalconStor, partners can implement solutions quickly and provide immediate, demonstrated ROI, enabling them to deliver unparalleled service to their customers – which provides mutual success for FalconStor, its channel partners and customers alike. Ms. Petty has been recognized consistently as a channel leader. Her recognition by CRN as a Storage Channel Chief comes atop Petty´s success leading FalconStor´s channel sales efforts to consistent year over year growth since the inception of the company. As a channel-only company, FalconStor attributes a significant part of its success to FalconStor channel partners. "FalconStor and Wendy Petty are true believers in the channel,” said Bill Colestock, Vice President of the Storage Business Unit at Mainline. "FalconStor offers channel solutions that are both high volume and high-margin. Their channel-friendly incentive programs maximize partner margins and reward Solution Partner sales and technical staff. In addition, FalconStor delivers outstanding training and support personnel, materials and programs and drives qualified leads to its partners through continuous integrated marketing programs.” About FalconStor FalconStor Software, Inc. (NASDAQ: FALC), #5 in Forbes 2008 list of America’s Fastest-Growing Technology Companies, is the market leader in disk-based data protection. We deliver proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. Our TOTALLY Open™ technology solutions, built upon the award-winning IPStor® virtualization platform, include the industry leading Virtual Tape Library (VTL) with Single Instance Repository (SIR) for de-duplication, Continuous Data Protector™ (CDP), Storage Virtualization, and Replication for disaster recovery and remote office protection. Our products are available from major OEMs and solution providers including IBM, EMC, SUN, Acer, Brocade, H3C, MPC, and Pillar Data Systems and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises. FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific regions including Paris, Tokyo and Taiwan. For more information, visit www.falconstor.com or call 1-866-NOW-FALC (866-669-3252). FalconStor and FalconStor Software are registered trademarks, and TOTALLY Open and Continuous Data Protector are trademarks of FalconStor Software, Inc. All other company and product names contained herein may be trademarks of their respective holders.