Xiotech New Channel Partner Program

Xiotech Corporation announced that it has launched a new
three-tier channel partner program designed to attract best-in-class
resellers and support the company’s aggressive growth plans. With the
new program Xiotech has added a new Elite partner level, in addition to
its Premier and Preferred partner levels. Elite partners will have
specific storage virtualization and VMware expertise. Elite, Premier
and Preferred partners all will become an extension of the Xiotech
sales force, and will receive several new advantages including
increased margin protection, improved lead generation processes and
enhanced communications and training.

Xiotech also announced that Mike Gluck has joined the company as
vice president, channel development. He will lead the new channel
development strategy and will report to Casey Powell, Xiotech president
and chief executive officer.

"We’re investing heavily in our storage business and recently announced several new features with the Magnitude 3D
4000 storage system, as well as our plans to develop new game-changing
technology from our Seagate acquisition," said Powell. "We expect
significant growth opportunities with the new technology, and a
best-in-class channel program developed by Mike Gluck will help us
capture market opportunities faster and more effectively."

Xiotech’s new partner levels are tiered by the partner’s number of
Xiotech certified systems engineers, sales representatives and revenue
achievement. In addition, Elite partners will have a significant focus
on virtualization, including VMware technology, ensuring these partners
can leverage the latest Magnitude 3D 4000 features, which offer unique
benefits in these environments.

The new program offers several new advantages for Xiotech storage
channel partners. Most significantly, the program provides minimum
margin guarantees to the reseller, which ensures a reseller’s margin is
protected in a highly competitive bidding situation. Additionally, the
new program includes a registration capability, which rewards and
recognizes a reseller that initiates a new opportunity.

The new program, which Xiotech dubbed XCEL, includes a significant
focus on a "direct assist" territory management model with clear rules
of engagement to support the channel, so reseller partners and
Xiotech’s direct sales teams will have mutual trust and can work toward
the optimal success for both parties. Xiotech will focus primarily on
those customers that prefer to buy directly from the manufacturer and
will use reseller partners where customers prefer to buy from VARs and
integrators that offer complimentary products and services. Xiotech’s
local presence will be extremely beneficial to its reseller partners in
this direct assist model. Also, the opportunity registration feature of
the new XCEL program will minimize channel conflict.

Mike Gluck has more than 35 years of experience in the computer and
data storage industry. Prior to joining Xiotech, Gluck was an
independent consultant and partner with IN-fusion, a leading business
accelerator company focused on the network storage industry.
Previously, he was a co-founder of Chaparral Network Storage, which was
eventually acquired by Dot Hill. Before Chaparral, he was vice
president of Fujitsu Computer Products of America Storage Group which
grew fifteen-fold to more than $500 million in his 12-year tenure.

Xiotech Corporation