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Price Reductions and Warranty Improvements Also Announced for High-Availability StoneFly IP SANs

Hayward, Calif. – Dec. 10, 2008 — 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 it is now offering high-capacity SAS expansion for all four S-Class models in its Integrated Storage Concentrator™ (ISC) line of IP SANs. While StoneFly has been delivering SAS-configured IP SANs since 2006, the four S-Class models, which also support SATA, provide small and medium businesses with more options for transaction-intensive applications and tiered storage flexibility.

Now available, the new S-Class ISC systems are being offered in addition to the existing SATA-only ISC models that StoneFly has been providing for several years.

The addition of SAS to the ISCs lowers the cost of expansion significantly: from $1.00 per GB previously, to $.80 per GB currently. In addition, customers can now increase expansion to up to 72 additional disks on two of the S-Class models (the ISC-1602S and ISC-2402S) to allow even more options for storage scalability. All four SAS/SATA models support 450GB SAS disks, which are the largest capacity drives available for SAS systems. Support for SATA disks up to 1TB is also available for the S-Class ISC systems.

“With organizations demanding more and more tiered storage capacity, along with the ability to scale quickly and easily, the ISC is positioned to deliver more storage flexibility than ever before for our customers,” said Bahman Jalali, director of product management for StoneFly, Inc.

The ISC product line was developed to offer a simple, rapid to deploy IP SAN in a box for growing organizations. Within a single chassis, all IP SAN functions are consolidated for virtualization, management and storage. Based on the extensible StoneFly StoneFusion® operating system, the ISCs offer both flexibility and performance to deliver a full-featured IP SAN solution that can scale to meet changing needs. Available configurations range from 2 to 24TB in a single node.

Another change announced today for the ISC line is that it now comes standard with 6 Gigabit Ethernet ports, or can be upgraded to support dual 10G connections.
In addition, StoneFly has announced new manufacturer suggested retail pricing (MSRP) for the ISC S-Class models. SATA configurations start at US$8,400 MSRP; SAS configuration start at US$10,100 MSRP.

New Pricing and Warranty Coverage on HSC-HA IP SANs
StoneFly also announced today new pricing for its Hybrid Storage Concentrator (HSC) line of IP SANs in high availability (HA) configurations. The new MSRP for 32TB configurations, built without a single point of failure, is US$43,000. In addition, StoneFly has increased its standard warranty coverage to include next business day parts replacement or onsite support for all HSC-HA configurations.

All StoneFly IP SANs are anchored by the StoneFly Storage Concentrator Storage Virtualization Engine, which offers quad core processing power, dedicated iSCSI cache, and the award-winning StoneFusion™ IP SAN platform for block-level provisioning as well as centralized storage management, and advanced storage features including replication, mirroring and snapshotting.

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 visitwww.stonefly.com or www.iscsi.com .

Founded in 1989, Dynamic Network Factory, Inc. (DNF) is a privately held company based in Silicon Valley (Hayward, Ca.). 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. In 2006, DNF completed its acquisition of StoneFly Networks, an iSCSI storage pioneer and developer of complete, turnkey IP SAN solutions. Since its inception, DNF has designed custom solutions for organizations of all sizes and built products for many major computer manufacturers. Today, DNF consists of seven business divisions including StoneFly, DNF Security, DNF Professional Services, DNF Medical, DNF Defense, DNF Systems and DNF Storage. DNF has thousands of customers ranging from consumers and small-to-medium businesses, to government agencies, universities, hospitals, financial institutions and Fortune 500 companies. For more information, visit www.DNFCorp.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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