User Base of Sepaton Expands to 900 Customers and 57PB in 2007

Record customer acquisition and corporate expansion across key
functional areas of the business and geographies fueled SEPATON’s
growth and continued dominance in the high-performance data protection
market during 2007. SEPATON reported that its user base has
expanded to more than 900 customers with over 57PB of data, a 180%
percent increase in the number of customers and a 320% increase in
overall PBs shipped compared to this time last year. 

Additionally, its
enterprise-class virtual tape library is now installed in more than 25
countries around the world, demonstrating SEPATON’s ongoing commitment
to expanding its international business, and developing the virtual
tape library market in new regions around the world.

"SEPATON
delivered another year of hyper-growth based on balanced execution
across the company," said Mike Worhach, president and CEO, SEPATON,
Inc. "Our record new customer wins and near 100% retention rates by
large enterprises show that SEPATON is becoming entrenched in the data
center.  Our unique vision for the enterprise, differentiated product
family including DeltaStor de-duplication, and our nimble execution as
a new breed of storage company have us very well positioned for 2008
and beyond."

"2007 was the year of disk-based data protection,"
said Steve Duplessie, senior analyst, Enterprise Strategy Group. "The
market came alive and everyone has bought into the promise of what
disk-based systems have added to the data protection continuum. 2008
will be an even better year as customers move from putting in their
first disk-based systems to making it the defacto standard for
protection and archiving.  This is a great market to play in."

SEPATON
expanded its customer base by adding 400 customers in 2007, bringing
its total customer count to more than 900.  Particularly strong
adoption was seen in vertical industries including financial services
and manufacturing, securing new accounts such as BMW, Federal Reserve
Bank, Frankford Hospital, MIT, Perot Systems Corporation, Sirius, Tyco
Electronics, Union Bank, University of Miami, and Vodacom. SEPATON’s
technology now protects over 57 PB of data worldwide.

• More than
  33% of existing customers expanded the capacity or performance of their
  S2100-ES2 VTL, proving its flexibility and ease of upgrade
  capabilities. The average SEPATON system deployed in 2007 features
  more than 69 terabytes, 1.6 times the average capacity of the previous
  twelve months.
• In the UK and Ireland, SEPATON achieved sales
  figures of more than $1 million USD through its new distributor Hammer
  plc just six months after selecting the storage specialists as its sole
  UK distributor in April.  More than 30 new European customers were
  added in 2007.
• Asia Pacific, Japan and Korea continued to yield
  a strong return on SEPATON’s investment in this geography with 14 new
  customer wins in 2007.  The S2100-ES2 was also honored with a 2007
  product of the year award by IT168.
• In addition to its
  commitment to the enterprise, SEPATON has made great strides in the
  small and medium size business (SMB) market via its recently signed
  strategic distribution agreement with Tech Data Corporation to extend
  access of its virtual tape technology to SMBs across North America.
• SEPATON
  continued its successful collaboration with HP to enhance the HP
  StorageWorks 6000/1200 Virtual Library System (VLS) products as well as
  the new multi node scalable HP StorageWorks 9000 VLS.

SEPATON, Inc.