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iSCSI Storage Pioneer Continues to Innovate While Broadening Channel Strategy

SAN DIEGO, June 30, 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 has been selected by Everything Channel as a CRN Emerging Tech vendor for its complete line of channel-friendly, best-in-class IP SANs. CRN’s Emerging Tech list captures companies that are delivering high margins for solution providers with innovative and easy-to-use technology that undercuts industry giants.

In selecting StoneFly, CRN cited the company’s simple and affordable IP SANs, which provide the highest levels of storage optimization and disaster recovery protection, while also offering comprehensive support for leading server virtualization platforms. After pioneering the IP SAN market in 2003, StoneFly established its MVP Channel Program to support channel partners in every facet of industry, ranging from small-to-medium businesses to large-scale Fortune 500 companies. In the past year, StoneFly has gained traction in regions across the globe, building alliances with new partners in Europe, South America, Asia and Canada.

According to the CRN Emerging Tech Survey, the top reasons solution providers add emerging technologies include, the technology is superior to other products in the market segment; the technology compliments a solution providers’ existing practice areas; emerging vendors provide better services opportunities; emerging vendors pay better attention to partners; emerging vendors offer higher margins, customers want alternative product choices; and emerging vendors have better joint marketing programs. In addition, 61 percent of solutions providers surveyed plan to increase the number of emerging technology vendors they partner with in the next 12 months.

“New and innovative vendor partners can help spur profitable new ideas that Solution Providers can use to build revenue and customer loyalty, and the CRN Emerging Tech list is where Solution Providers go to find these vendors,” said Robert C. Demarzo, senior vice president and editorial director, Everything Channel editorial.

Vendors who make the CRN Emerging Tech list must have an established solution provider program and formal guidelines for recruiting channel partners. They must demonstrate that its direct sales mix is trending down as evidenced by the company’s revenue history, a channel positive or channel neutral strategy for internal sales compensation, and not be a dominant market share player. Final selection to the Emerging Technology list was made at the discretion of the CRN editorial team after a review of the submitted information and conversations with current or targeted partners.

“We are honored to have CRN recognize StoneFly once again as an Emerging Tech Vendor,” said Ken Friend, channel director for StoneFly, Inc. “StoneFly’s MVP Channel Program supports solution providers across the globe with dedicated account representatives as well as comprehensive training and support for their wide-ranging storage projects, from virtualization and business continuity to e-mail archiving, IP surveillance, backup and integration.”

About CRN
CRN provides solution providers and technology integrators with the crucial information and analysis they need to drive their company’s sales. As an advocate for and voice of the IT channel, solution providers turn to CRN first for immediate information. Celebrating its 25th year, CRN is the most trusted source for channel professionals. CRN can be found on the web at www.channelweb.com.

Everything Channel (www.everythingchannel.com, www.channelweb.com)
Everything Channel, formerly CMP Channel, is the global leader in technology sales and serves as the one stop shop for the sales channel that drives 75 percent of technology sales throughout the world. IT suppliers and Solution Providers turn to Everything Channel to manage and accelerate their business. Everything Channel provides the answer to strategy and branding, online marketing, research/market intelligence, lead generation, branded and custom events, education and workflow tools targeted to those who buy and sell through the Channel. Everything Channel is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/ ), a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

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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