FalconStor and China Security & Surveillance Technology Partner to Deliver Data Protection...

FalconStor and China Security & Surveillance Technology Partner to Deliver Data Protection and Continuity for Digital Video Surveillance

Companies Complement Digital Information and Storage Optimization
Solutions with Joint Development and Marketing Initiatives
MELVILLE, N.Y.--(Business Wire)--
FalconStor Software, Inc. (NASDAQ: FALC), the provider of TOTALLY
Open(TM) data protection solutions, today announced a partnering
agreement with China Security & Surveillance Technology, Inc. (CSST)
(NYSE: CSR), to bring the efficiencies of SAN virtualization, storage
provisioning, business continuity and storage management to the
digital video security and surveillance market. As part of this
agreement, the companies will collaborate to jointly address the
worldwide market for digital video security and surveillance with
co-development and co-marketing activities.

CSST engages in the manufacturing, distribution, installation, and
maintenance of security and surveillance systems throughout China. Its
customer base includes financial institutions, transportation
facilities, telecommunication providers, and government agencies. The
digital IP surveillance market is growing fast, and the data needs to
be protected and recoverable. CSST identified FalconStor as the
strategic partner able to provide a total storage solution for CSST's
surveillance systems.

"Managing the storage needs of digital surveillance systems is
critical as the security and surveillance industry continues to grow
significantly in China and around the world," said Dr. Eric Chen, vice
president and general manager, FalconStor Asia Pacific Operations.
"CSST is at the forefront of next-generation digital surveillance
systems, and it demands robust data protection and business continuity
technology from FalconStor."

CSST leverages FalconStor(R) Network Storage Server (NSS) to
connect to storage devices from any vendor and to manage all the data
coming in from their digital cameras. Storage virtualization and
provisioning with FalconStor NSS gives CSST digital multimedia systems
the flexibility and scalability needed to accommodate rapid storage
growth. Used in combination with NSS, FalconStor Continuous Data
ProtectorTM (CDP) ensures the protection and availability of all
security footage from CSST's digital cameras through efficient
replication to a central data center.

"High-capacity storage, with sophisticated data protection is
essential for a successful IP surveillance system," said China
Security Chief Executive Officer Guoshen Tu. "As local government Safe
City projects continue to accelerate in China, there is a major need
for surveillance systems accompanied by advanced data storage
solutions. FalconStor will help CSST advance its technology in the
area of IP-based storage, which strengthens our ability to service
Safe City contracts and generate new business. We are excited to be
collaborating with FalconStor."

CSST has been helping its customers transition their video
surveillance systems from analog to digital video to eliminate the
labor-intensive, time-consuming and tedious process of extracting
useful information. With an IP Surveillance System, video data is
available anywhere at any time and can be searched and reviewed
rapidly. Companies can also use software applications for detection
and analysis, license plate recognition, encryption, watermarking and
connection authentication at the camera level -- features not feasible
with an analog camera system.

Oyster Bay, New York-based technology research firm ABI Research
believes that the video surveillance market is poised for explosive
growth, which the firm forecasts to expand from revenue of about $13.5
billion in 2006 to a remarkable $46 billion in 2013. Those figures
include cameras, computers and storage, professional services, and
hardware infrastructure: everything that goes into an end-to-end
security system.

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, China Security manufactures,
distributes, installs and maintains security and surveillance systems
throughout the PRC. China Security has manufacturing facilities
located in China and an R&D facility which maintains an exclusive
collaboration agreement with Beijing University and Wuhan University.
China Security has built a diversified customer base through its
extensive sales and service network that includes numerous points of
presence throughout the PRC.

About FalconStor Software, Inc.

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(TM) technology solutions, built upon the award-winning
IPStor(R) platform, include the industry leading Virtual Tape Library
(VTL) with deduplication, Continuous Data Protector(TM) (CDP), Network
Storage Server (NSS), and Replication option for disaster recovery and
remote office protection. Our products are available from major OEMs
and solution providers including Acer, Brocade, EMC, COPAN Systems,
H3C, IBM, MPC, Pillar Data Systems 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 regions including Paris, Tokyo
and Taiwan. For more information, visit www.falconstor.com or call
1-866-NOW-FALC (866-669-3252).

FalconStor, FalconStor Software, and IPStor are registered
trademarks, and Continuous Data Protector and TOTALLY Open are
trademarks of FalconStor Software, Inc. All other company and product
names contained herein may be trademarks of their respective holders.

FalconStor Software, Inc.
Herman Chin, 631-773-5863
herman.chin@falconstor.com

Copyright Business Wire 2008