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Also Upgrades Existing IP SANs with Enhanced Server Virtualization Support, Quad Core Processing and Support for 10K RPM, 150GB SATA Drives

Hayward, Calif. — Oct. 24, 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 introduced two new IP SANs as well as upgrades to its existing products. The Integrated Storage Concentrator (ISC) 801 is a new system designed for small- and medium-sized enterprises (SMEs) in need of transitioning from direct attached storage to an entry-level IP SAN, while the High-Availability Storage Concentrator (HSC) 1601 delivers the industry’s highest levels of redundancy to organizations in need of maximum data protection.

Now available, the new ISC-801 is an easy-to-deploy “IP SAN-in-a-Box” that provides everything customers need for enterprise-class SAN storage, at an entry-level price. It installs in minutes and features centralized storage management and integrated business continuity, with support for eight drives and up to 4TB of storage.

“The ISC-801 gives growing companies the perfect introduction to all that IP SANs have to offer, while the HSC-1601, along with the powerful new features now available for our existing IP SANs, will ensure that our more established customers can meet and exceed today’s escalating IT requirements,” said Mo Tahmasebi, CEO of DNF.

The HSC-1601 replaces the HSC-1420, and supports 10GB Ethernet and StoneFly’s field-tested clustering technology to offer mirroring at the hardware level to minimize downtime in all failure scenarios from the component level, to the system level, and chassis level. With support for 16 disks and capacities ranging from 150GB to 1TB, the HSC-1601 offers scalability to 16TB in a single chassis.

StoneFly’s upgrades to its existing ISC-1601 and ISC-2401 systems include the addition of Intel’s quad core processing power to deliver higher levels of IP SAN performance; and support for 1TB drives as well as 10K RPM, 150GB SATA drives (Western Digital’s Raptors.)

All HSC and ISC IP SANs are anchored by the StoneFly StoneFusion Operating System™, an IP-based block-level provisioning appliance that centralizes storage management, control and monitoring of logical storage volumes. StoneFusion 6.0 provides enhanced VMware and Xen support for fast integration of networked storage with virtual servers, and also includes StoneFly Reflection™ for local and campus mirroring, asynchronous replication and StoneFly Snapshot™ for fast, efficient data recovery.

With capabilities for external expansion, all HSC and ISC systems also allow organizations to leverage nearby SAN storage to meet emerging requirements – an advantage for mid-to-large-size enterprises with multiple SANs.

Now available, the ISC-801 is priced starting at US$13,000 for a 4TB solution that includes all of StoneFusion’s advanced functionality. The HSC-1601 is also now available and is priced starting at US$20,000 for a 2.4TB system with StoneFusion.

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 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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