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FOR IMMEDIATE RELEASE

SEPATON Expands Its Family of Virtual Tape Appliances with Entry Level Solution
SEPATON's Network Of Value-Added Resellers Now Includes More Than 25 Members

SOUTHBOROUGH, MA, July 6, 2004 - SEPATON, Inc., the emerging leader in high-performance data protection appliances, today announced the immediate availability of the S2100-DS Virtual Tape Library (VTL) system. Designed for small to mid-size data centers with growing data protection requirements, the S2100-DS reduces the cost of entry of VTLs with backup and restore performance far superior to host-based disk-to-disk solutions. SEPATON's entire S2100 family of data protection solutions is available through a growing network of value-added resellers now totaling more than twenty-five members in North America, including AdviStor, Inc., Cambridge Computer, Datalink Corp., EOS, Enterprise Storage Solutions, HA Storage Systems, Inc., HorizonTek, SIGNAL Computer Products, Inc., and UNICOM.
 
The S2100-DS addresses the needs of customers who have more than a terabyte of primary data to protect, desire the ability to scale capacity and performance in a more granular way than previously available, and require a solution that integrates seamlessly into existing backup infrastructure with simple, out of the box installation. The S2100-DS is also ideally suited for departmental users and remote sites of large corporations. Available in 1.5 terabyte increments up to 6 terabytes and a 150 megabyte per second throughput capability, the S2100-DS extends the advantages of the S2100-ES (scalable up to 200 terabytes) at a price and capacity point that small and medium sized data centers can afford.
 
The S2100-DS combines Fibre Channel technology, high-speed ATA RAID disk storage and SEPATON's unique tape library emulation technology to offer the highest levels of scalability and performance available today. The S2100-DS is priced competitively with traditional disk-to-disk RAID array products while providing three times the backup and restore speed.
 
"Small and Medium-size Businesses (SMB) have all the same needs as larger enterprises and their data is just as important to them," said Tony Asaro, senior analyst, Enterprise Strategy Group. "We did a recent survey of over 220 IT professionals and 66% said their backups took too long and 49% said recovery was a major issue. The SEPATON S2100-DS will allow SMB customers to solve fundamental backup and recovery problems with an attractive price/performance solution from a company that is already gaining traction in larger enterprises with its high-end VTL product."
 
"With the S2100-DS, SEPATON has rounded-out its virtual tape solution family to address a broader segment of the backup and restore market and we now have a competitive solution for any customer with more than a terabyte of data to protect," said Mike Worhach, president and CEO of SEPATON, Inc. "Based on the lower price point and broad market appeal, the S2100-DS is especially popular with the VAR community as evidenced by our ability to attract some of the most well-regarded, storage-centric resellers in the industry."
 
"The SEPATON S2100-DS is the ideal backup and recovery solution for storage-centric VARs," explained Bob King, Vice President, AdviStor, Inc. "It meets the needs of customers by integrating easily into today's most popular storage environments, out-performing traditional tape products by ten times and traditional disk-to-disk backup/restore products by up to three times. The fact that the S2100-DS installs in minutes and is completely compatible with the leading backup/restore applications makes it a win-win for the VAR sales and support model since we can concentrate our expertise on value added services and not on the complexity of the disk arrays."
 
Availability and Pricing
The SEPATON S2100-DS is immediately available. Pricing starts at $21,000. Interested parties are encouraged to contact SEPATON for more details at 508.490.7900.
 
About SEPATON, Inc.
Based in Southborough, MA, SEPATON, Inc. develops and markets a family of data protection solutions to medium and large data centers that must manage multiple terabytes of data daily. SEPATON's data protection solutions integrate seamlessly into existing customer environments. The company is privately held with investments from Jerusalem Venture Partners, Menlo Ventures, and Valhalla Partners. For more information, visit www.sepaton.com.