NeoScale Launches Partner Alliance Program; Delivers Industry's Leading Storage Security Solutions Across Four Continents

NeoScale Systems Inc., the premier storage security company, today announced the launch of the NeoScale Alliance Partner Program, designed to provide the company's best-in-class storage security family of products to its solution and channel partners around the globe. NeoScale developed this partner program to meet the increased demand for its products and to provide its customers with the industry's most comprehensive suite of solutions to meet their storage security requirements.

Beginning October 2005, the NeoScale Alliance Partner Program will have two categories: Solution Partners and Channel Partners. The program is designed to enhance the company's existing alliance with third-party technology partners to deliver and develop expanded security solutions, and increase its network of leading security channel partners. These partnerships will further NeoScale's ability to offer differentiated, innovative, and reliable multi-vendor storage security solutions that effectively meet customers' specific needs.

"NeoScale's solutions help our partners leap ahead of the current security capabilities available in the marketplace and we are seeing strong adoption across geographies," said Barbara Nelson, Chairman and CEO of NeoScale. "NeoScale was the first storage security appliance in the EMC Select program giving us a strong stake in the ground. In the last month, EMC and NeoScale have built a strong pipeline of over 60 opportunities in large enterprise customers; the majority of these customers are evaluating our tape security solution to ensure the privacy of tape media as it is shipped to offsite locations."

NeoScale Solution Partners Interoperate to Ensure Data Privacy
NeoScale Solution Partners include world-renowned vendors such as ADIC, ADVA, Brocade, Cisco, EMC, Fujitsu, Hitachi, McData, Quantum, STK, and Symantec, whose products have passed interoperability testing with NeoScale technology. As a result, customers now have the benefits of a comprehensive storage security solution that complements their existing storage network and can be resold as a bundled offering by Solution Partners. NeoScale continues to expand its partner program with the announcement of IBM and HP as new Solution Partners.

Recently awarded TotalStorage Proven certification by IBM Corp., the NeoScale CryptoStor Tape and CryptoStor SAN VPN each underwent rigorous interoperability testing of integrated storage technologies to help IBM customers minimize investment risk, increase efficiency, and accelerate infrastructure implementation. CryptoStor Tape, which automates encryption of tape backup, was qualified compatible in Fibre Channel and SCSI environments. CryptoStor SAN VPN, which automates data encryption across metropolitan area network (MAN) Fibre links, was qualified compatible in FICON environments.

In addition, NeoScale has joined the HP Information Lifecycle Management (ILM) partner program as a premier gold partner. HP's global ILM initiative is designed to help customers effectively manage information from creation through archive based on changing business requirements. NeoScale's solutions are a strong complement to HP's ILM offering providing customers with the most expansive storage security solutions that reduce enterprise threats and exposure.

NeoScale Channel Partners Extend Reach Across Four Continents
NeoScale Channel Partners span four continents and support key vertical markets, such as finance, healthcare, and government. NeoScale Channel Partners consist of service providers, global integrators, and value-added resellers (VARs) that resell NeoScale solutions across the Americas, AsiaPac and EMEA. New channel partners include Stack Computer, MCSI, ePlus, CSF Storage (Brazil), Corptech (UK), and others. The addition of NeoScale's CryptoStor appliance family makes it an attractive product line for partners to sell and has made storage security accessible to a broad range of solution providers. As a result, joint customers now have the most complete storage security solutions for both tape and disk to safeguard their data and comply with increased regulatory requirements.

"In today's world, network security is an essential element of any solution," said John Orr, CEO of Stack Computer. "With the addition of NeoScale's storage security solutions and expansive training and support, this program literally positions us to widen the storage security playing field and provide customers with the right products to secure their business today. Stack always strives to provide the best in class solutions to our customers and we are confident that NeoScale fits that category."

The NeoScale Alliance Partner Program includes a range of integrator- support benefits, including in-depth product training and pre-sales technical support to ensure that the design and implementation of the NeoScale CryptoStor product family satisfies each enterprise customer's unique business requirements. NeoScale CryptoStor products can be transparently installed with minimal impact to operations and configurations, while delivering wire-speed encryption and operating reliably within an existing storage infrastructure.

About NeoScale
Founded in June 2000, NeoScale Systems Inc. is the premier storage security company enabling customers to achieve data privacy with the lowest operational impact and at the lowest total cost. NeoScale solutions have been certified by leading storage vendors and have been deployed worldwide within government, financial services, healthcare, and other organizations. The company has raised over $44M in venture financing from Advanced Technology Ventures, Bay Partners, Lightspeed Venture Partners, and Sevin Rosen Funds. For more information, visit www.neoscale.com.