Chelsio Adapters Certified with FalconStor’s IPStor 5.0

FOR IMMEDIATE RELEASE

CHELSIO ADAPTERS CERTIFIED WITH FALCONSTOR’S IPSTOR 5.0

SUNNYVALE, CA, MARCH 6, 2006 – Chelsio Communications, Inc., the leading provider of iSCSI acceleration adapter and ASIC solutions, today
announced that FalconStor Software, Inc. (Nasdaq: FALC), a leading provider of network storage infrastructure software, has certified Chelsio’s T210 single-port 10GbE and T204 quad-port TOE/iSCSI acceleration adapters for SuSE 9.3 Linux as fully interoperable with its industry-leading IPStorВ® 5.0 software.

Together the companies will provide IP storage area network (IP SAN) and network-attached storage (NAS) customers with Chelsio’s T204/T210 adapters and IPStor for a high-performance storage management architecture with high availability and reliability in enterprise environments.

FalconStor and Chelsio share the vision of providing a standards-based high-performance resilient storage architecture, said Don Mead, vice president of marketing for FalconStor. Chelsio’s T204 and T210 accelerators provide high-performance networking options for customers deploying IPStor for enterprise-grade NAS or a IP SAN deployments.

Chelsio’s quad-port GbE and single-port 10GbE TOE/iSCSI acceleration adapters are recognized as the highest-performing network adapters in the industry. The company’s new SuSE 9.3 Linux drivers provide acceleration, link aggregation and failover for leading throughput and scalability in NAS and IP storage environments.

Today, an iSCSI-based SAN array is several times cheaper to build and own than a similar fabric based on Infiniband or Fibre Channel. The seamless integration of Chelsio’s offload technology and Falconstor’s industry leading storage software now adds a rich feature set and the same or higher performance as other fabrics as well. This is a big milestone for our business strategy and our vision of an Ethernet-based unified fabric, said Kianoosh Naghshineh, president and CEO of Chelsio. Our Terminator network acceleration technology provides optimum price/performance for NAS and iSCSI storage environments. Together, FalconStor and Chelsio deliver upon the promise of high performance and availability for Ethernet storage networks requiring capabilities such as continuous backup and rapid data recovery.

About FalconStor IPStor
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 maximizing performance.

About FalconStor Software
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.

About Chelsio Communications
Chelsio Communications is leading the convergence of networking, storage and clustering interconnects with its robust, high-performance and proven protocol acceleration technology. Featuring a highly scalable and programmable architecture, Chelsio is shipping 10-Gigabit Ethernet and multi-port Gigabit Ethernet adapter cards with protocol offload, delivering the low latency and superior throughput required for high-performance computing applications. More than 100 customers in 20 countries are using Chelsio products in a multitude of applications including high-performance cluster computing, server networking, network monitoring, digital media storage, video editing and post-production. For more information, visit the company online at www.chelsio.com.

###

Chelsio Media Contact:
Tim Helms
Helms Communications, Inc.
925-606-6936
timhelms@comcast.net

Company Contact:
Randy Smith
Chelsio Communications, Inc.
408-962-3681
randy.smith@chelsio.com

FalconStor Media Contact:
Sabrina Sanchez
Ventana Public Relations
925-875-1968
sabrina.sanchez@ventanapr.com