FalconStor Software, Inc. (NASDAQ: FALC), the market leader in disk-based data protection solutions, today announced that it has been recognized for outstanding achievement in technological innovation. VARBusiness magazine has selected FalconStor as a Tech Innovator Company of the Year for the company’s new FalconStor® Continuous Data Protection (CDP) Virtual Appliance for VMware Virtual Infrastructure in the storage category of its 2007 Tech Innovator Awards competition.

The FalconStor CDP Virtual Appliance for VMware Virtual Infrastructure is the first solution to provide customers with complete data protection across both physical and virtual systems. Fully certified and integrated with the VMware ESX server, the CDP Virtual Appliance gives organizations the ability to meet data protection challenges by providing continuous availability of the application server and its data across virtual and physical environments. This industry-first data protection solution effectively eliminates backup windows and the need for mandatory restores to deliver true business continuity.

“We are particularly proud to receive this award for technological innovation from VARBusiness based on recognition from value-added resellers and solution providers,” said Wendy Petty, vice president of sales, FalconStor Software. “The FalconStor CDP Virtual Appliance has been designed to provide channel partners and, in turn, their end-user customers, with a complete data protection solution for their VMware virtual environments that offers unparalleled flexibility and ease of use. To win this award from channel and technology experts verifies that we have met those critical goals.”

"Innovation is truly the heart of the technology industry. As a winner of this year's VARBusiness Tech Innovator Awards, we recognize FalconStor for taking innovation to the next level," said Robert C. DeMarzo, vice president and editorial director, CMP Channel. "We congratulate FalconStor on their selection as one of this year's Tech Innovator Award winners."

The VARBusiness Tech Innovators project is the means by which IT channel partners assess the technical innovation and development efforts of vendors. The 2007 VARBusiness Tech Innovator awards were judged by a panel of solution-provider executives and VARBusiness editors. The judges scored the products based on five main points -- usefulness, how new and/or improved the product is, price/performance, revenue potential and the overall "coolness" factor. The awards were presented at the XChange Tech Innovators conference held October 8th in Miami. The XChange conference brings together more than 130 of the channel's most unique, forward thinking integrators with the objective of helping them identify and consider alternative technologies and companies to do business with.

In addition to the award, FalconStor will be featured in the VARBusiness November issue, which will include profiles, features and in-depth explanations of the technologies and products.