FalconStor Software Elects Steven L. Bock to Board of Directors; Compa

    Business Editors/Software Writers

    MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 10, 2005--FalconStor Software, Inc. (Nasdaq: FALC), a leading developer of network storage software solutions, today announced that Steven L. Bock, CEO of Unger Software Corporation, a leading provider of financial planning and profiling software for advisors and other finance industry professionals, has been elected to FalconStor's Board of Directors, bringing a wealth of first hand business, management and financial experience and expertise to the company.
    Bock's business and management accomplishments in a wide range of industries will add valuable insight to the FalconStor Software Board and management team as it executes on the company's mission and vision of delivering innovative network storage software solutions.
    "We are extremely pleased to welcome Steven as our newest board member," said ReiJane Huai, Chairman and CEO of FalconStor Software. "He fully understands the diverse business and strategic opportunities presented to FalconStor, as well as the challenges faced by our prospective customers. His decision to join the FalconStor team is a strong vote of confidence in our company, and his perspective on future strategic initiates will be invaluable."
    "FalconStor has earned the reputation as an innovator in the network storage software industry," said Bock. "I look forward to working with an executive and senior management team that is committed to building a world class business based on the development of technology that can effectively address immediate and future customer needs."
    Bock's career includes executive management positions in a variety of industries. Prior to joining Unger Software, Bock was a consultant to early-stage companies, and served as a Director and Interim Chief Operating Officer of B2B Video Network, a company that operated a secure, reliable business-to-business video network to deliver essential business programming to the desktops of business users throughout the world. From 1990 through 2000, he was Chairman, Chief Executive Officer and President of Specialty Catalog Corp., a direct marketer targeting niche consumer product categories through a variety of catalogs and E-commerce web sites. Bock has also been an officer at investment holding and management firms, and a partner of a law firm.

    To read the complete release, including the Safe Harbor agreement, visit www.falconstor.com/stevenbockBoD.asp.

--30--KL/ny*

CONTACT: FalconStor Herman Chin, 631-962-1163 herman.chin@falconstor.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: HARDWARE BANKING SOFTWARE INTERNET E-COMMERCE MANAGEMENT CHANGES SOURCE: FalconStor Software, Inc.

Copyright Business Wire 2005