SEPATON and Tech Data Corporation Sign North American Distribution Agreement

MARLBOROUGH, MA – May 7, 2007 – SEPATON, Inc., the leader in high-performance data protection solutions, today announced that it has signed a strategic distribution agreement with Tech Data Corporation to extend access of its virtual tape technology to small to midsize businesses (SMBs) across North America. SEPATON will leverage Tech Data’s extensive distribution expertise, innovative marketing resources and broad customer base to drive sales of its S2100®-DS2 virtual tape library designed specifically for the needs of the SMB market.

As part of the distribution agreement, SEPATON and Tech Data will dedicate support staff and marketing resources to ensure a successful collaboration for new resellers. SEPATON resellers will be supported by Tech Data’s Advanced Infrastructure Solutions Division (AIS). It combines a high-touch, consultative sales approach with the distributor’s extensive technical expertise and broad product knowledge to help resellers capitalize on the demand for mid-market and enterprise-level server, storage and software solutions.

"SMBs are increasingly turning to VARs for more efficient and cost-effective storage solutions, especially in the areas of data backup and recovery," said Senior Vice President and General Manager, AIS, Pete Peterson. "SEPATON has a strong record of delivering these benefits for enterprise customers. This agreement demonstrates their commitment to leveraging the channel and working with VARs to capitalize on the demand for storage solutions in the SMB market."

"This is a significant distribution event for our company," stated Mike Worhach, president and CEO, SEPATON, Inc.  "Our agreement with Tech Data will further develop SEPATON’s channel presence and customer base across all of North America and deepen our penetration in the SMB market.  We understand that one of the keys to success in this marketplace requires forming strong relationships and strategic partnerships through the channel.  Tech Data has an outstanding reputation for serving the needs of its reseller and integrator partners, and for working with vendors to successfully engage them with those partners.  This agreement enables us to reach a diverse group of solution providers and to more broadly extend our presence beyond the large enterprise market."

This agreement is well-timed. According to Enterprise Strategy Group Analyst, Heidi Biggar, "For years, small organizations, particularly those with limited or no designated IT resources, have struggled to find products that enable them to easily and cost-effectively protect their data while meeting regulatory requirements.  As a result, many SMBs have either ended up implementing data-protection solutions that have been too big for their environments, with the hope that they will grow into them, or implementing solutions that have been grossly inadequate given today's increasingly demanding business climate."

SEPATON has extended the reach of its enterprise virtual tape library technology with the availability of the S2100-DS2, a simple, departmental high performance VTL appliance that dramatically improves backup and restore reliability and performance while reducing operational complexity.  The S2100-DS2 extends the advantages of SEPATON’s very successful enterprise VTL to SMBs at a price and capacity point that small and medium sized data centers can afford. The S2100-DS2 is available in 3.5TB and 7TB configurations.  The S2100-DS2 design incorporates software compression which delivers compression comparable to that delivered by tape drives.

About Tech Data
Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) is a leading distributor of IT products, with more than 90,000 customers in over 100 countries. The company's business model enables technology solution providers, manufacturers and publishers to cost-effectively sell to and support end users ranging from small-to-midsize businesses (SMB) to large enterprises. Ranked 109th on the FORTUNE 500(R), Tech Data generated $21.4 billion in sales for its fiscal year ended January 31, 2007. For more information, visit www.techdata.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.

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