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U.S. Army, U.S. Navy, FBI, Department of Homeland Security and Other Federal Agencies Will Continue to Be Able to Procure from DNF

HAYWARD, Ca. – February 6, 2008 – Dynamic Network Factory, Inc. (DNF), a leading maker of high-performance network attached storage (NAS), storage area networks (SANs), RAID and iSCSI systems, today announced that it has been awarded an extension through 2012 on its General Services Administration (GSA) schedule contract, number GS-35F-0153N, enabling civilian, U.S. defense and other federal agencies to continue to procure DNF’s industry-recognized data storage, service and consulting offerings.

The extension applies for the first time to StoneFly, Inc. (www.stonefly.com ), a wholly owned DNF subsidiary and leading supplier of integrated IP storage area network (SAN) systems. It also allows several other DNF business units to continue their GSA programs, including DNF Storage (www.dnfstorage.com ) and DNF Defense (www.dnfdefense.com ), which specifically supports government and military applications with ruggedized workstation, storage and server solutions.

DNF was first awarded a GSA contract in 2002. Since that time, the company has supplied storage systems to the U.S. Army, the U.S. Department of Homeland Security, the Federal Bureau of Investigation (FBI), the National Geospatial-Intelligence Agency (NGA), the Navy Expeditionary Medical Support Command (NEMSCOM), the U.S. Department of Health and Human Services, and various other federal agencies.

“The U.S. federal government continues to represent one of DNF’s strongest markets,” said Mo Tahmasebi, CEO of DNF. “We’re very pleased that the many federal agencies that turn to us for storage expertise have expressed confidence in our proven solutions for strengthening their storage environments. We look forward to continuing to serve their storage needs.”

Inclusion in the GSA schedule allows government and federal agencies and their civilian suppliers to procure a range of DNF products and services through a simplified process and with favorable pricing.

About Dynamic Network Factory and Stonefly, Inc.
Founded in 1989, Dynamic Network Factory, Inc. (DNF) is a privately held company based in the Silicon Valley (Hayward, Ca.). DNF carries a variety of products, ranging from network attached storage, direct attached storage solutions and IP SAN solutions, to assist companies in meeting their mission-critical storage needs with cost-effective, high performance storage equipment. DNF has designed custom solutions for organizations of all sizes and manufactured products for many major computer manufacturers. DNF has thousands of customers ranging from consumers and small-to-medium businesses, to government agencies, universities, hospitals, financial institutions and Fortune 500 companies. Key customers include UC Berkeley, MIT, the Federal Aviation Administration, FBI, Lockheed Martin, Bank of America, Citibank, Wells Fargo, Fujitsu, Honda Corporation of America, SBC, BAE Systems, and General Dynamics.

DNF started as a U.S. subsidiary of the publicly traded Japanese IT conglomerate, CSK Electronics, in 1989. In 1998, the company refined its strategy and began to focus the hardware group on storage solutions. DNF emerged as an independent privately held organization after a year of rapid growth. In 2006, DNF completed its acquisition of StoneFly Networks, an iSCSI storage pioneer and developer of complete, turnkey IP SAN solutions. StoneFly, Inc., headquartered in San Diego, was founded in April 2000 to deliver upon the vision of simple and affordable storage optimization and disaster recovery protection through IP SAN solutions. StoneFly is a subsidiary of DNF, Inc. For more information, visit www.DNFcorp.com .

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Dynamic Network Factory, DNF and DNF Storage are trademarks of Dynamic Network Factory, Inc.

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