SEPATON'S VTL DOMINATES VIRTUAL TAPE LIBRARY APPLIANCE MARKET.

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MARLBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 31, 2006--SEPATON, Inc., the leader in high-performance data protection solutions, today announced it has achieved significant strides in 2005, including record sales and acclaim from customers, partners, and industry analysts alike. SEPATON first defined the Virtual Tape Library (VTL) market with its award-winning S2100(R) appliance. In 2005, the company realized the benefits of its innovation by recognizing record deals, entering new world markets, and forging critical alliances with HP and leading channel partners in the storage industry.

"2005 has been a year full of impressive milestones for SEPATON as we have proven our value to many large data centers around the world," said Mike Worhach, president and CEO, SEPATON, Inc. "We are leading change in data protection and supplementing existing tape technologies by delivering immediate value without disruption to customers' infrastructure."

SEPATON's appliance-based approach and unique ContentAware(TM) architecture resonates with the IT community. The company has seen a tremendous surge in new business, winning marquee customers such as 24Hour Fitness, AAA, China Construction Bank, CitiStreet, Foxwoods Casino, Harris Corporation, Industrial Bank of Korea, Keyspan, and MCI. Also, SEPATON has continued to expand internationally in Germany, Switzerland, United Kingdom, Australia and Asia including Japan. The company's year-over-year revenue growth exceeded 300 percent with more than 150 new customers protected by SEPATON technology and over 2.5 PB of customer data now protected by SEPATON based solutions."

The release of the next generation S2100-ES2 platform was another indicator of SEPATON's VTL market leadership. The S2100-ES2 includes major advancements in the areas of scalability, performance, usability, density and product functionality, providing customers with high performance backup and restore capabilities unavailable in other disk-based systems or tape-based systems. In late 2005, SEPATON further extended its performance and capacity lead with the introduction of 400 GB drives. The new configuration yields sixty percent higher density and reduces the hardware footprint and substantially lowers the cost per GB. The unit scales to more than 1 PB usable capacity and speeds up to 1200 Megabytes (MB) per second. SEPATON also doubled the scalability and performance of the S2100-ES2 with the announcement of 8 node support in December.

"HP thoroughly reviewed virtual tape library technologies, and recognized the technology leadership that SEPATON delivers with its dynamic file system marked by an intelligent software core able to distinguish content and files," said Bob Wilson, vice president and general manager of Nearline Storage, StorageWorks Division, HP. "SEPATON's ability to scale capacity and performance cost-effectively made it the most logical design partner choice for HP to integrate SEPATON's data protection platform as the basis for the HP StorageWorks 6000 Virtual Library System. This technology enables HP customers to accelerate their backup performance in complex SAN ...