FalconStor® Network Storage Server (NSS) Maximizes Whole Health Management´s Business Continuity and Resilience to Disasters

FalconStor Software, Inc
December 12, 2007

Turnkey NSS appliance offers storage virtualization and provisioning services over iSCSI or FC SAN via A-A cluster for high availability and enterprise class storage services to minimize operating cost

Melville, NY -- FalconStor Software, Inc. (NASDAQ: FALC), the market leader in disk-based data protection solutions, announced today that Whole Health Management, Inc., a leading operator of on-site corporate health and wellness centers, has implemented the FalconStor® Network Storage Server (NSS), powered by the FalconStor® IPStor® virtualization platform. Chi Corporation, a leading FalconStor Solution Provider partner, integrated the FalconStor IPStor SAN consisting of two NSS appliances into Whole Health´s existing SAN infrastructure.

Chi integrated two NSS appliances into a High Availability (HA) cluster with 24 drives each, housed at Whole Health´s secure data center, to manage Whole Health´s SAN infrastructure. The SAN hosts Whole Health´s critical business operations data and utilizes TimeMark® snapshots and replication option between the FalconStor NSS at the main office and the remote data center for disaster recovery.

“We store everything from email to confidential electronic medical records,” said Chuck Siemon, Chief Information Officer at Whole Health. “The FalconStor NSS saves us time and money, optimizing the use of disk space and no longer requiring the reconfiguring or ordering of new disks for each server we purchase. Due to the FalconStor NSS´ snapshot capabilities, we have a solution that is better than data encryption for protecting copies of our data. We are confident that the FalconStor NSS will keep our confidential healthcare data secure and in compliance with HIPAA regulations.”

Whole Health chose the FalconStor NSS as a long-term solution that will grow with their data. Currently, they are using approximately 60 percent of their 4TB capacity.

“Our partnership with FalconStor gives Chi Corporation access to technology that solves very specific business problems for our customers,” said John R. Thome, Jr., Vice President at Chi Corporation. “Whole Health has a need to store tremendous amounts of data and to make accommodations for large scale future storage needs. The FalconStor solution allowed Chi to differentiate itself from the competition.”

“The healthcare industry is growing exponentially and has strict guidelines for privacy and retention,” said Wendy Petty, Vice President of Sales at FalconStor Software. “The implementation at Whole Health gave us an opportunity to reinforce how well FalconStor solutions assist firms in complying with the ever-increasing data security requirements of today´s healthcare environment such as the HIPAA guidelines, while also ensuring the firm´s own data protection needs.”

FalconStor NSS appliances deliver fast and simple iSCSI, Fiber Channel (FC), or network attached (NAS) primary storage. They provide storage virtualization, provisioning and heterogeneous storage management. All models include TimeMark® snapshot capability for fast recovery to known points in time. Data on the appliances may be optionally replicated to another appliance for real-time disaster recovery protection. Two NSS-series appliances can be interconnected for mirroring and active/active failover, ensuring high availability operation.

About Whole Health Management
Whole Health Management is a leading operator of on-site corporate health and wellness centers in the United States. Since 1981, Whole Health has provided integrated occupational health, urgent, preventative and primary care, physical therapy, employee assistance counseling, wellness and fitness services to corporate employees and their families. Whole Health clinics deliver significant savings to corporations through lower health care costs, increased productivity, reduced employee sick time and lower pharmacy costs. Whole Health currently serves more than 350,000 employees, and in many cases, spouses and dependents, at more than 70 sites including many large corporations and Fortune 500 companies. For more information about Whole Health, visit www.wholehealthnet.com.

About Chi Corporation
Chi Corporation is a Storage Solutions Provider specializing in data storage, backup, & disaster recovery. Their offerings include tiered storage (DAS, SAN, NAS), tape and D2D backup. Chi is known for its expertise in iSCSI & Fiber Channel SAN technologies, replication, disaster recovery, & business continuance. Chi Corporation provides these products and services for the SMB market place to enterprise environments.

About FalconStor
FalconStor Software, Inc. (NASDAQ: FALC) 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 technology-independent solutions, built upon the award-winning IPStor® virtualization platform, include the industry leading VirtualTape Library (VTL) with Single Instance Repository (SIR) for de-duplication, Continuous Data Protection (CDP), Storage Virtualization, and Replication for disaster recovery and remote office protection. Our products are available from major OEMs and solution providers including EMC, SUN, Brocade, H3C, and COPAN 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 (669-3252).

FalconStor FalconStor Software, IPStor and TimeMark are registered trademarks of FalconStor Software, Inc., in the United States and other countries. All other company and product names contained herein may be trademarks of their respective holders.