SEPATON Named "Cool Vendor" in Data Protection by Leading Analyst Firm

Companies Selected for "Cool Vendor Report" Based on Innovation, Impact and Intrigue

MARLBOROUGH, MA - March 27, 2008 — SEPATON, Inc., the leader in enterprise-class data protection solutions, is pleased to announce that it has been named one of Gartner's "Cool Vendors in Data Protection" in a March 20, 2008 report released by Gartner, Inc.  Written by Dave Russell and John P. Morency, research vice presidents, the report, "Cool Vendors in Data Protection, 2008," detailed five disk-based data protection solutions from companies like SEPATON which offer innovative, impactful, and intriguing solutions in the data protection marketplace.

The report states:  "In early 2006, Gartner stated that "Disk-to-disk backup and, therefore, disk-based recoveries will be the most significant technology impact on recovery in the next five years."  In 2008, Gartner reiterates that this trend will continue. In fact, they have seen a significant uptake in the adoption of disk-based recovery solutions in 2007 and early 2008. End-user inquiry and conference polling results show that disk-based backup, heterogeneous replication, deduplication and VTL offerings are being considered and deployed at an accelerating rate."

"SEPATON has created a very differentiated approach to data protection in the enterprise through its ContentAware architecture," said Mike Worhach, president and chief executive officer, SEPATON, Inc.  "Over the past year, SEPATON has grown its customer base exponentially with enterprise-class VTL and deduplication installations in more than 25 countries around the world.  This success points to the demand for solutions that perform fast enough to meet demanding service levels, scale with the business, and minimize power and space in the process.  We believe recognition from Gartner as a cool vendor in our marketplace is another important milestone for us. We are pleased to see further recognition for our efforts."

Given the concerns noted above, 83 percent are planning to deploy either a disk-to-disk or a disk-based VTL solution and 28.7 percent are planning to implement electronic remote replication. When asked what technology they would implement if their budget was unlimited, the majority chose electronic remote replication.

"Our survey results mirror what we're hearing from our Fortune 1000 customers.  Large enterprises remain focused on improving one of their most painful processes - meeting backup and recovery windows without impacting performance, all while reducing data center costs," said Asim Zaheer, vice president of marketing, SEPATON, Inc.  "In addition, virtual tape libraries with deduplication and online remote replication capabilities protect data in a fraction of the time required by tape or disk-to-disk systems."

About Gartner's Cool Vendors Selection Process

Gartner's listing does not constitute an exhaustive list of vendors in any given technology area, but rather is designed to highlight interesting, new and innovative vendors, products and services. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness of a particular purpose.

Gartner defines a cool vendor as a company that offers technologies or solutions that are: Innovative, enable users to do things they couldn't do before; Impactful, have, or will have, business impact (not just technology for the sake of technology); Intriguing, have caught Gartner's interest or curiosity in approximately the past six months.

About SEPATON, Inc.

SEPATON helps enterprises reduce risk and improve operational efficiency in the data center with the industry's fastest, most scalable virtual tape library solution. Built on our patented ContentAware architecture, SEPATON products enable enterprises to consolidate and protect information by deduplicating, backing up and restoring petabytes of data at wire speed without disruption to their existing infrastructure. We combine these products with proven methodologies and in-depth services expertise to deliver a measurable return on investment. For additional information call 508-490-7900 or visit www.sepaton.com.

Contact:

Beth Winkowski

SEPATON, Inc.

978/649-7189

bwinkowski@att.net

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