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Also Demonstrates New StoneFusion 6.1 Intelligent Network Storage Platform

LinuxWorld/SAN FRANCISCO – AUGUST 4, 2008 – At the LinuxWorld Conference & Expo, August 4-7 at San Francisco’s Moscone Center, StoneFly, Inc., a leading supplier of integrated IP storage area network (SAN) systems and a wholly owned subsidiary of Dynamic Network Factory, Inc. (DNF), will unveil enhanced server virtualization capabilities across its entire IP SAN line through certification with both the Citrix/Xen and VMware platforms. StoneFly is exhibiting the new capabilities at the event in booth #1315.

In addition, the company will debut its new SAN-based encryption capabilities for the StoneFly Integrated Storage Concentrator (ISC) line of high-availability IP SANs. Lastly, StoneFly will demonstrate, for the first time, its robust new StoneFusion 6.1 intelligent network storage platform, which is now being offered as a standard, integrated component of all StoneFly IP SANs to deliver block-level provisioning and centralized storage management, control and monitoring of logical storage volumes.

“We’re pleased to be a part of the LinuxWorld Conference & Expo once again,” said Mo Tahmasebi, CEO of Dynamic Network Factory. “StoneFly takes pride in its commitment to open source solutions as a critical component of SANs, and there is no better place to demonstrate that commitment than at LinuxWorld.”

More than 200 exhibitors and thousands of Linux and open source users from around the globe will gather at LinuxWorld to explore the latest products and solutions, learn from industry leaders about emerging trends, and gather intelligence in broad-reaching educational and hands-on training sessions focused on key industry themes.

The LinuxWorld exhibit hall floor opens on Tuesday, August 5 at 10:00 a.m. Exhibit hall passes are free on or before August 3, 2008 and will cost $50.00 thereafter. Register for free exhibit hall passes athttp://www.linuxworldexpo.com .

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 (re-incorporated as StoneFly, Inc.), 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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