Wendy Petty, Vice President of North American Sales for FalconStor Software, Recognized as a 2010 Channel Chief by Everything Channel’s CRN

FalconStor Software, Inc. (NASDAQ: FALC), today announced that Wendy Petty has been named a 2010 Channel Chief by the Everything Channel’s CRN. Channel Chiefs are leaders in creating effective channel programs for solution providers. They consistently defend, promote and execute effective channel partner programs and strategies.

Organizations are seeking solutions to effectively protect their growing data repositories and server infrastructures. Petty and FalconStor enable partners to bring innovative solutions to market that meet this mounting need. In 2009, FalconStor launched the FalconStor^® File-interface Deduplication System (FDS), named a 2009 Tech Innovator by Everything Channel’s CRN, which eases into any backup environment without disruption and dramatically reduces storage consumption. It helps IT managers at small and medium-size businesses and at large enterprises do more with less during a time when organizations are evaluating technologies that can help cut IT expenses.

For the eighth consecutive year, the Channel Chiefs were chosen based by Everything Channel editorial staff on criteria including policy and program innovations made during the past year, the amount of revenue their company generates through partners, their willingness to speak out publicly on behalf of the channel and the number of years they have dedicated to channel activities.

“In a challenging economy, FalconStor has created joint solutions that allow channel partners to leverage existing relationships for a more compelling, value-added solution, generating much higher revenue and margins,” said Petty. “This recognition confirms that by allowing partners to utilize FalconStor solutions to protect their own data, we further validate the technology to their customers and continue to build brand awareness.”

“Being named a Channel Chief is one of the most prestigious honors in the IT industry. This year’s Channel Chiefs offer tremendous insight into the who’s who of the Channel,” said Kelley Damore, vice president and editorial director of Everything Channel. “Top channel executives consistently ensure that the Channel’s voice is heard when strategic decisions are being made and continually nurture mutually profitable relationships. We applaud the 2010 Channel Chiefs for their successful partner programs and strategies.”

For additional information on the CRN Channel Chief list, visit www.channelweb.com. The Channel Chief list was published in the February 22, 2010 issue.

About FalconStor Software

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-optimi zed replication for disaster recovery and remote office protection. FalconStor products are available from major OEMs and solution providers including 3Com, Acer, 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 http://www.falconstor.com/ or call 1-866-NOW-FALC (1-866-669-3252).

About Everything Channel (www.everythingchannel.com, www.channelweb.com)

Everything Channel, headquartered in Framingham, MA, is a technology marketing and sales solutions company. Through its “Complete Technology Channel Solution,” Everything Channel offers the right business tools to accelerate 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 the sellers of technology to achieve measurable and significant results.

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetisation of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organised into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.ubm.com.

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

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