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More than 50 New Channel Partners Signed in 12 Months

SAN DIEGO – June 4, 2007 — StoneFly, Inc., a leading supplier of integrated IP storage area network (SAN) systems and a wholly-owned subsidiary of Dynamic
Network Factory, Inc. (DNF), today announced that more than 50 new channel partners have signed with the company since the launch of its MVP Channel Program in 2006. Value-added resellers (VARs) cite StoneFly’s full-featured, price-competitive IP SAN product line as well as the dedicated support offered by StoneFly as the reason for MVP’s success.

In the past six months, StoneFly has gained traction in regions across the globe, building alliances with new partners in South America, Asia and Canada. Earlier this year, StoneFly also announced its entry into the European market with the signing of JAD Logic, Ltd. as a U.K.-based, continent-wide distributor.

According to Ken Friend, channel director for StoneFly, the core success of the program stems from the fact that the majority of the company’s partners are highly active resellers. “We are selectively choosing solution providers that are more than just order takers: they not only add significant value to our StoneFly IP SANs, but are also looking to build relationships with their customers in conjunction with us,” he said. “These partners rely upon their own technological expertise to put the ‘Value’ back into VARs.”

About 75 percent of StoneFly’s MVP Partners are centered in the U.S., and with the launch of the MVP Program, Stonefly reaffirmed its commitment to channel sales following its acquisition by Dynamic Network Factory in early 2006. The company has leveraged the strengths of veteran storage VARs, such as national provider NavigateStorage LLC (www.navigatestorage.com), a data protection solutions company founded in 1999.

“StoneFly IP SANs are outstanding products that offer the wide breadth of features — such as mirroring, storage provisioning and volume management — required to support even the largest enterprises,” said Jim Addlesberger, President and CEO of NavigateStorage. “Today’s IP SANs are being deployed in the main data center, as well as in departmental applications. Their performance and reliability are now proven. That’s why the best aspect of working with StoneFly, in addition to their quality products, is having a dedicated representative on hand to help us identify the right solution for our customers.”

NavigateStorage, which specializes in most all industries, has deployed StoneFly IP SANs for email archiving, disk-to-disk backup, database solutions, managed services, document management systems and disaster recovery and business continuity initiatives.

Stonefly’s MVP program supports channel partners with customers in every facet of industry, ranging from large-scale Fortune 500 companies to government and education markets as well as SMEs. Interested resellers are encouraged to apply for StoneFly MVP partnership online
About StoneFly, Inc. and Dynamic Network Factory, Inc. 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 Dynamic Network Factory, Inc. (DNF), a leading maker of high-performance network attached storage, storage area networks, RAID and iSCSI systems. For more information on StoneFly, please visit www.stonefly.com or www.iscsi.com/.

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 to assist companies in meeting their mission-critical storage needs with cost-effective, high performance solutions. 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. Within a year, DNF’s rapid growth resulted in its emergence as an independent, privately held spin-off. DNF has thousands of customers ranging from consumers and small-to-medium businesses, to government agencies, universities, hospitals, financial institutions and Fortune 500 companies. In 2006, DNF completed its acquisition of StoneFly Networks, an iSCSI storage pioneer and developer of complete, turnkey IP SAN solutions. For more information, visitwww.DNFstorage.com
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StoneFly, StoneFusion, StoneFly Reflection, StoneFly Snapshot and Storage Concentrator are trademarks or registered trademarks and the property of StoneFly, Inc. All other company and product names contained herein are property of their respective owners.

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