DataDirect Networks Announces Corporate Milestones, Record Infiniband/S2A Shipments and Record Revenue in Third Quarter

Fast growing disk storage systems provider exceeds 92 Petabytes of S2A storage deployed

Chatsworth, Calif. — October 30, 2007 – DataDirect Networks Inc., a leading provider of scalable storage systems for performance and capacity-driven applications, announced today a number of corporate milestones including record sales of S2A Infiniband and overall S2A products in the third quarter.

Third Quarter 2007 corporate milestones include:

• Recording the highest quarterly revenue in the company’s history.
• Shipping the 3000th S2A storage appliance since the first unit was sold to NASA in 2000.
• Reaching a combined installed capacity nearly 100 petabytes.
• Record S2A appliance shipments.  Over 250 S2A9550 storage appliances with a total capacity of nearly 19 Petabytes (19,000 Terabytes) of storage were shipped in the third quarter.
• Record shipments of Infiniband connected S2A9550 storage systems.¹  Q3 2007 Infiniband-based S2A shipments exceeded overall 2006 S2A Infiniband shipments.
• Shipping 10 Petabytes of S2A systems using newly available 1TB SATA disk drives.

DataDirect Networks S2A (Silicon Storage Architecture) storage appliances represent a fundamentally different approach to disk storage systems design. Conceived from the ground up for today’s emerging, high-growth data patterns, which are characterized by large files and the need for bandwidth-driven performance and massive storage capacities, S2A storage appliances help Internet, media, oil & gas, design and manufacturing and large corporations speed access to their data while reducing the complexity and cost of managing their storage systems.

S2A Storage Systems eliminate limitations found in traditional storage systems by providing the following unique features:

• RAID 6 double-parity protection without any performance degradation, enabling high performance using less expensive SATA disk drives.
• Drive errors, failures, and rebuilds do not cause any performance degradation, enabling very predictable performance.
• Writes to the array occur just as fast as reads from it, making S2A systems ideal disk-to-disk backup targets and other write intensive applications.
• All data is available at full speed at the same time on all host ports, eliminating network latency and contention, reducing costs and management complexity, and simplifying the storage network architecture.

S2A storage systems are specifically designed to simplify management and lower capital acquisition costs of storage, particularly for bandwidth-driven performance and scalable capacity required by modern applications that generate, consume and move very large quantities of data. Using S2A storage systems, computing clusters can scale beyond 100,000 servers all accessing a common pool of storage at the same time.

The company’s premiere S2A-based storage system, the S2A9550, is capable of 3 gigabytes per second (GB/s) of large file performance from a single active-active appliance and is capable of scaling up to 960 terabytes of capacity in high-density disk drive enclosures that fit on two data center floor tiles. Since the S2A9550’s introduction in late 2005, DataDirect Networks has sold more than 1,200 systems, with nearly 600 sold year-to-date in 2007.

“We are extremely pleased to see our performance-engineered S2A storage systems being adopted so rapidly and by repeat customers,” said Paul Bloch, President and co-founder of DataDirect Networks. “The S2A’s ability to help companies cost-effectively store and protect their rapidly-growing data is being recognized and is evident in our strong financial results.”

”DataDirect Networks brings major architectural differences to the table that is driving its success,” said Tony Asaro, senior analyst, Enterprise Strategy Group.  “The S2A has been built to address the needs of a new business landscape that balances extremely high performance, cost effectiveness and massive density.  Any combination of these elements are valuable and become enablers to meet business goals that would otherwise be too expensive and inefficient.”

¹=Infiniband, an industry standard, channel-based, switched-fabric, interconnect architecture for servers and is being increasingly adopted to connect storage systems to computing networks. DataDirect Networks has been on the forefront of this technology since its inception. The company is the leading supplier of Infiniband connected storage worldwide.

About DataDirect Networks
DataDirect Networks is a leading provider of intelligent open storage platforms. DataDirect Networks’ S2A (Silicon Storage Architecture) represents a pioneering approach to enterprise storage which separates the storage intelligence from the underlying disk drive hardware, enabling significant improvements in flexibility, performance, capacity, data center efficiency and manageability.

Media Contact:

Rick Popko
Weber Shandwick
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Alex Sayyah
DataDirect Networks Inc.
Tel: (818) 700-7600
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