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[November 18, 2009]

FalconStor Software Named a 2009 Tech Innovator by Everything Channel's CRN

MELVILLE, N.Y. --(Business Wire)-- FalconStor (News - Alert) Software, Inc. (NASDAQ:FALC), the provider of TOTALLY Open™ data protection solutions, today announced that it was named a 2009 Tech Innovator by Everything Channel's CRN for its FalconStor® File-interface Deduplication System (FDS) in the Storage category. Everything Channel's Tech Innovator listing celebrates technology vendors that have introduced new solutions that drive advances throughout the technology channel.

FalconStor FDS helps users minimize online storage capacity requirements for backup and archiving applications. As a capacity-optimized storage repository, its capacity requirements for disk-to-disk (D2D) backup applications can be reduced by as much as 20 times or more by eliminating redundancies resulting from backup operations. FalconStor FDS enables cost-effective disaster recovery (DR) by sending only unique, deduplicated data across the wide area network (WAN).

"This award confirms our commitment to provide our channel partners with solutions that not only protect, but also improve the management of growing data repositories and server infrastructures," said Wendy Petty (News - Alert), FalconStor vice president of North American Sales. "FalconStor FDS is designed to ease into any backup environment without disruption and to dramatically reduce storage consumption, giving immediate value to any IT environment. It gives our partners maximum potential profit margin through less overhead, easier deployment and the reduction of overall backup costs. It is gratifying to be recognized for the tremendous amount of effort and investment that FalconStor has put into creating a deduplication solution that is truly a win-win for the channel." "Innovation has been a critical, driving force behind growth and expansion of the IT industry since its inception and that innovation continues to this day. As a result of the steady, hard and often unheralded work in the R&D labs throughout the industry, technology, cultural and business leadership happens every day," said Robert C. DeMarzo, senior vice president and editorial director, Everything Channel. "Congratulations to this year's innovators. We applaud you on your success." The Tech Innovators were nominated by their individual companies and final selections were made by the editors of CRN. In order to participate, products were required to have been introduced (as a new product or significant upgrade) after August 1, 2008, and all products were required to be shipping in volume by July 30, 2009. Products were also required to be sold via commercial or retail channels.

Winners will be announced in the December 14 issue of CRN. To read about the CRN Tech Innovators, go to www.channelweb.com.

For more information on how data deduplication is helping organizations, visit http://www.dedupeinfocenter.com.

About FalconStor Software, Inc.

FalconStor Software, Inc. (NASDAQ:FALC) is the market leader in disk-based data protection. FalconStor delivers proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity, and simplicity. The Company's TOTALLY Open™ technology solutions, built upon the award-winning IPStor® platform, include the industry leading Virtual Tape Library (VTL) with deduplication, Continuous Data Protector (CDP), File-interface Deduplication System (FDS), and Network Storage Server (NSS), each enabled with WAN-optimized replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including 3Com, Acer (News - Alert), COPAN Systems, Data Direct Networks, Dynamic Solutions International, EMC, IBM, Pillar Data Systems, Spectra Logic and Sun 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 region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit www.falconstor.com or call 1-866-NOW-FALC (1-866-669-3252).

About Everything Channel (www.everythingchannel.com, www.channelweb.com) Everything Channel is the one-stop shop for managing and accelerating technology sales. From branding and recruiting to marketing and sales, Everything Channel offers technology marketers the unmatched breadth and depth of global brands and market intelligence combined with unparalleled audience loyalty and credibility serving all technology sales channels through an extensive database. Everything Channel provides innovative field sales and marketing solutions to arm the sellers of technology with the resources they need to achieve measurable and significant results.

About United Business Media Limited (www.unitedbusinessmedia.com) United Business Media Limited (UBM) is a global media and marketing services company that informs markets and brings the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. UBM serves professional and commercial communities, from IT professionals to doctors, from journalists to jewelry dealers, from farmers to pharmacists around the world. UBM employs more than 6,500 people in more than 30 countries. UBM's businesses operating in the U.S. include CMPMedica, Commonwealth Business Media, Everything Channel, PR Newswire, RISI, TechInsights, TechWeb (News - Alert) and Think Services. UBM is listed on the London Stock Exchange (UBM.L) and has a market capitalization of $1.6 billion.

FalconStor, FalconStor Software and IPStor are registered trademarks and TOTALLY Open is a trademark of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.

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