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Agreement Represents StoneFly’s First Foray Into Distribution Partnership Following 2006 Launch of MVP Channel Program

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 a U.S. distribution agreement with PAC Data, a nationwide distributor of storage products and services. PAC Data will serve as an anchor for the StoneFly MVP Channel Program, supporting the company’s VARs as they expand into new markets while accelerating growth of StoneFly’s overall reseller network across the U.S.

According to Ken Friend, Channel Director for StoneFly, the agreement with PAC Data marks an important milestone for StoneFly as it aligns with a U.S. distributor for the first time since the launch of its MVP Channel Program in June 2006. “We are very pleased to be joining forces with PAC Data as we expand our presence in the U.S.,” said Friend. “With its proven track record in storage, PAC Data will add muscle to our channel sales program while ensuring that our VARs have the nationwide support they need to succeed,” he said.

PAC Data focuses solely on storage hardware and software, and staffs an extensive engineering and sales team trained to provide VARs with assistance and guidance at all levels of a sale. According to Rick Crane, president and CEO of PAC Data, StoneFly’s advanced IP SAN offerings provide VARs with highly effective storage alternatives for small-to-medium enterprises (SMEs) as well as customers in large-scale Fortune 500 companies and government and education markets. “As a pioneering force in the iSCSI market, StoneFly brings both innovation and value to our strong lineup of storage offerings,” said Crane. “This agreement will allow us to equip our VARs with iSCSI storage systems that meet the requirements of a wide range of demanding applications, while also providing affordability and ease of installation.”

StoneFly’s MVP program supports StoneFly channel partners with customers in every facet of industry. The program offers special discounts, increased margins, a partner management system, marketing support and intensive iSCSI training. Interested resellers are encouraged to apply for StoneFly MVP partnership online at

About PAC Data
PAC Data, based in Aliso Viejo, Calif., is a nationwide value-added storage distributor. The company aligns with VARs and resellers on a national basis and works under contractual agreements with the manufacturers it supports including the leading innovators in storage hardware and software. PAC Data’s storage-focused staff assists VARs in all aspects of the sale, recommending solutions to customers based on corporate storage policies, environments and budgets. PAC Data is dedicated to providing unsurpassed service and the lowest prices in the industry. For more information, please visit www.pacdata.com or call (949) 360-1796.

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. In 2006, DNF completed its acquisition of StoneFly Networks, an iSCSI storage pioneer and developer of complete, turnkey IP SAN solutions. Now a wholly owned subsidiary of DNF Corporation, StoneFly, Inc. is headquartered in San Diego.

Since its inception, DNF has designed custom solutions for organizations of all sizes and built products for many major computer manufacturers. DNF has more than 20,000 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. For more information, visit www.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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