DataDirect Networks Has Record Revenue Year

53% Growth Rate Driving Surge in Hiring Across the Organization

Los Angeles, CA — February 5, 2007 — DataDirect Networks, the 5th largest independent storage provider according to Gartner Dataquest Research's External Controller-Based Disk Storage, Worldwide 2002-2005 Market Share Report, has announced unprecedented revenue growth in 2006.

DataDirect Networks grew 53% in 2006 delivering 45% CAGR since 2003, and as a result, has moved to a much larger headquarters as well as establishing offices in Japan and China this year. To continue this record setting growth, DataDirect Networks is planning to hire 100 additional employees in 2007 across all functional areas and geographies.

"The continued and ever-increasing market acceptance of our S2A (Silicon Storage Appliance) storage technology from the world's governments, corporate and academic institutions is a strong testament to our unique vision and our decade long commitment to providing the best-in-class scalable high performance and high capacity storage solutions," said Alex Bouzari, CEO of DataDirect Networks.

The ranking from Gartner mirrors the recognition from the recently published 28th edition of the TOP500 list of the world's fastest clusters, asserting DataDirect's leadership position as the largest supplier of high performance storage to the world's top cluster sites, with 7 out of the world's top 10, 35 out of the world's top 100, and more than 52% of the top 100 clusters' aggregate bandwidth being powered by DataDirect.

The same Gartner Dataquest Research's External Controller-Based Disk Storage, Worldwide 2002-2005 Market Share Report authored by Roger Cox also recognized DataDirect as the 3rd largest independent storage provider for "Block Midrange Enterprise Disk Array Vendor Raw Terabyte Shipped Market Share."

"We will continue to drive customer-centric innovation while further establishing our technological leadership to develop enabling storage solutions in our market verticals to better serve our customers. These solutions include high performance, high capacity cluster storage, cluster NAS, active archive and nearline storage, petascale and InfiniBand storage as well as tiered storage and backup and recovery solutions," concluded Bouzari.

About DataDirect Networks
DataDirect Networks is the world's leading provider of high performance, high capacity network storage solutions. Focused on driving customer-centric innovation, DataDirect Networks has created the Silicon Storage Appliance as the essential building block for High Performance Computing, Cluster Computing, High Density Nearline Archives, Energy, Internet-based Services and Rich Media storage solutions. DataDirect Networks' award winning Silicon Storage Appliance enables the creation of differentiated high performance, high capacity NAS and SAN storage, parallel and shared file system storage, primary and nearline storage, and virtual tape library storage solutions. Each solution offers unsurpassed performance, high availability, cost effective scalability and simplified management delivering the industry's best price per performance and best per capacity per square foot solutions.

Launched in 1998 and headquartered in California, DataDirect Networks has an established global presence with research and development, and operations in the United States, Europe and Asia. For more information, contact DataDirect Networks at (818) 700-7600 or visit www.datadirectnet.com.

DataDirect Networks and Silicon Storage Appliance are trademarks of DataDirect Networks, Inc. All other names are property of their respective owners.

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Media Contacts

Curtis Chan
Chan & Associates, Inc.
Tel: (714) 447-4993
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Alex Sayyah
DataDirect Networks Inc.
Tel: (818) 700-4039
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