SEPATON and Hifn Partner to Deliver Industry's Highest-Performing Data Reduction Solution

New Solution Combines Hifn’s Hardware-Advantaged Compression with SEPATON’s Data De-Duplication Expertise

MARLBOROUGH, MA and LOS GATOS, CA – May 9, 2007

– SEPATON, Inc., the leader in high-performance data protection solutions, and Hifn™, the power behind network and information security, today announced that the two companies have partnered to bring reduced costs and improved performance to the enterprise backup and restore process.  Together, the companies will deliver advanced data protection solutions combining SEPATON’s S2100®-ES2 virtual tape library and DeltaStor™ data de-duplication software with Hifn's Express DR 1000 storage reduction acceleration solution.

In the twenty-first century, connected enterprise data has become the most critical asset of business.  Customer information, supply chain data, and web and email communications are at the heart of any enterprise.  But, the volume of data that runs through this business ecosystem is growing at exponential rates while legislative mandates for corporate data protection, retention and retrieval like HIPAA and Sarbanes-Oxley continue to become more stringent. As a result, the emergence of disk-to-disk "nearline" storage and virtual tape solutions with data de-duplication and hardware-advantaged compression are designed to make high assurance, instantaneous recovery of critical data the new twenty-first century business imperative.

"With this announcement, SEPATON is the first data protection provider to combine Hifn’s Express DR 1000 hardware compression solution and data de-duplication to achieve industry leading data reduction ratios with no performance impact to the backup and recovery process," said Miklos Sandorfi, chief technology officer, SEPATON, Inc.  "This allows a SEPATON enterprise appliance to scale to 9600 MB/sec with 50:1 data de-duplication, enabling customers to reduce even more their storage footprint."

"The combination of Hifn’s hardware-advantaged compression and SEPATON’s data de-duplication software provides enterprise customers with increased storage capacity by as much as 50:1, a reduced backup window, longer online retention rates and accelerated data recovery time," said Russell Dietz, chief technology officer, Hifn.  "Data reduction should never cause a slowdown in the storage network and with Hifn’s hardware-advantaged compression customers will achieve industry-record performance."

Hifn’s Express DR 1000 Data Reduction accelerator board can double the capacity of existing storage investments while improving the performance of any storage system design with hardware-accelerated, error-free compression before information is moved to storage.  Typical 2:1 compression can reduce backup windows and help meet data retention mandates.

About Hifn
Hifn (NASDAQ:HIFN) powers network and information security. Leveraging over a decade of leadership and expertise in data encryption and compression, we are a trusted partner to industry innovators for whom security is critical to their success. With the majority of secure global communications flowing through Hifn technology, the convergence of security, storage and assured access drives our product roadmap forward. We will continue as the first resource for the toughest security requirements because we anticipate as we innovate in a field that leaves no margin for error. Hifn sets the industry standards and technology firsts to secure, compress and assure information wherever needed. For more information, please visit: www.hifn.com.

About SEPATON, Inc.
SEPATON is enabling companies of any size to comply with demanding data storage and retrieval requirements by changing the rules of data protection. We provide innovative, disk-based solutions that are intelligent, reliable and reduce storage, management and recovery costs. Because the proven SEPATON ContentAware™ architecture keeps track of all files and content, it enables faster and more efficient performance of a range of advanced data protection, data retention and data recovery functions. SEPATON's virtual tape library systems dramatically out-perform tape and other disk-based solutions. For additional information call 508-490-7900 or visit www.sepaton.com.

Contacts:

# # #

SEPATON, SRE, and S2100 are registered trademarks of SEPATON Corporation. ContentAware, Site2 and DeltaStor are trademarks of SEPATON Corporation.  All other brand and product names are or may be trademarks of their respective owners.