SAN DIEGO, CALIFORNIA - October 22, 2002 - StoneFly Networks(TM), the innovator of the first simple, intelligent, affordable, end-to-end IP SAN appliances, and BakBone Software, a global storage management software company, today announced a partnership to provide an end-to-end IP SAN-based storage provisioning and backup "solution set" to resellers, mid-tier enterprises, and workgroups and departments in larger enterprises. StoneFly's Storage Concentrators(TM) are "all-in-one" IP SAN appliances that combine the functionality of an iSCSI-based storage router, bridge and logical volume manager, and BakBone's NetVault software is a complete disk-to-disk backup solution. Together, the easy-to-install IP SAN bundle enables resellers to address the small- to medium-sized enterprise (SME) market by providing their customers with an easy-to-use, interoperable storage networking management "solution set" that ensures rapid return on investment (ROI) and low total cost of ownership (TCO).

Through its new IP SAN Partner Program, StoneFly Networks has certified BakBone Software's leading backup and recovery software, NetVault as interoperable with StoneFly Networks' complete family of Storage Concentrators. From the Storage Concentrator's easy-to-use graphical user interface (GUI), users can easily create virtual tapes on BakBone's NetVault, generate a backup from an internal disk to the IP SAN disk, and restore from the IP SAN volumes to the server's internal disks. This complete storage provisioning and backup bundle offers resellers and customers a fully tested and supported solution that will automatically backup business-critical data in IP-based SAN environments while production systems continue to operate.

"Our relationship with BakBone is part of our overall strategy to ensure that our solutions running in IP SAN environments are compatible with a broad range of leading storage solutions, applications and technologies," said Kevin J. Liebl, vice president of business development, StoneFly Networks, Inc. "Today, we're pleased to be providing our joint resellers and end users with a comprehensive, interoperable solution for that includes provisioning, data protection and recovery. We're looking forward to future joint development with BakBone to further enhance backup functionality in IP SANs."

Reseller and Customer Benefits

To arm resellers with all the tools necessary to effectively address the emerging IP-based SAN market, and to assure joint SME customers of a trouble free installation and user experience, StoneFly Networks provides:

• Cross training of sales and support teams on both the Storage Concentrators and NetVault.
• Solution Set application notes on implementing Storage Concentrators and NetVault in an IP SAN environment.

In addition, to demonstrate the benefits of a complete backup solution running in conjunction with StoneFly's Storage Concentrators, StoneFly is bundling a 45-day trial version of BakBone's Software Suite with every Storage Concentrator.

"The StoneFly/NetVault solution set has opened a large market for us that we previously weren't able to service due to the complexity and on-going support required for traditional SAN solutions," said James Kernan, president and CEO, Networks Plus, a reseller and integrator based in San Diego, California. "With this one complete solution that is so easy to install, our customers can consolidate, manage and back up their storage simply and cost effectively. In addition, since the Storage Concentrators and NetVault interoperate with parallel SCSI and Fibre Channel disk systems, we can sell into an extended market where existing parallel SCSI disk systems can be redeployed or connected to an existing Fibre Channel SAN."

"Together, StoneFly and BakBone enable companies to achieve maximum return on their investments in storage assets by alleviating the cost and complexity associated with existing storage solutions," Larry Fox, director, strategic alliances, BakBone Software, Inc. "StoneFly's IP SAN architecture combined with BakBone's industry leading software makes simple, affordable disk-to-disk backup a reality, which reduces cost, speeds data recovery and eliminates downtime."

About StoneFly Networks' Storage Concentrators

StoneFly's Storage Concentrators are the industry's first IP SAN appliances to combine the functionality of an iSCSI router, bridge and provisioning engine to enable a new class of simple, affordable IP SAN devices. StoneFly's first Storage Concentrators, the i1000, i1500 and i1500FS, enable users to quickly and easily turn an IP network into a storage network. By adding block-level storage intelligence to the IP networking core, enterprise customers now benefit from efficient storage utilization through storage consolidation, feature-rich managed storage capabilities, rapid deployment of new storage, and SAN-based back up functionality.

StoneFly's Storage Concentrators are based on the company's core storage networking architecture, StoneFusion(TM) Technology. The StoneFusion architecture is an intelligent iSCSI storage packet routing technology that enables the delivery of high-performance networked storage over IP. StoneFusion Technology works to consolidate and optimize storage assets thus lowering storage management acquisition costs and on-going support costs. The core StoneFusion architecture serves as the foundation for StoneFly's complete family of intelligent IP SAN applications.

About BakBone Software's NetVault

BakBone's NetVault is built upon an advanced modular architecture that provides IT managers the flexibility for growth and continued enhancements as information storage needs expand and change. With an intuitive and easy-to- use GUI, NetVault delivers enterprise-wide control in both distributed and centralized environments, operates in multi-vendor networks and supports a broad range of platforms, applications and high performance tape devices.

Availability

StoneFly's i1000, i1500 and i1500FS Storage Concentrators bundled with BakBone Software's NetVault are available now through StoneFly's and BakBone's channel distribution partners and select resellers. For resellers, StoneFly provides a comprehensive reseller guide with simple-to-follow instructions for the Storage Concentrator/NetVault "solution set" installation and setup.

About BakBone Software, Inc.

BakBone Software is an international storage management software company that develops and globally distributes high-performance software solutions to the network storage and open systems markets. BakBone's backup/restore and near-line archival software suites provide scalable data protection from the workgroup to the enterprise. Founded in 2000, BakBone Software's products are used by companies worldwide, and are distributed through a network of OEMs and solution providers. BakBone's corporate headquarters are located at 10145 Pacific Heights Boulevard, San Diego, California 92121. Its stock is listed on the Toronto Stock Exchange. For more information on BakBone products, call (866) 484-2663, e-mail sales@bakbone.com, or access BakBone's web site at www.bakbone.com

About StoneFly Networks, Inc.

StoneFly Networks(TM), Inc. is based in San Diego, California and was founded in April 2000 to develop simple, affordable IP SAN appliances that add intelligent storage management to IP networks transforming them into IP storage area networks (SANs). The company's complete line of Storage Concentrators(TM) combine the functionality of an iSCSI-based storage router, bridge and provisioning manager to provide an end-to-end storage provisioning solution that reduces the cost and complexity of managing storage assets. Storage Concentrators are based on StoneFly's StoneFusion(TM) storage networking architecture to consolidate and optimize data storage to reduce total cost of ownership (TCO) and increase return on investment (ROI). StoneFly Networks is a member of the Storage Networking Association (SNIA) and the founding member of the IP Storage Institute (IPSI). For more information, please visit the company's Web site at www.stonefly.com

StoneFly Networks, Storage Concentrators and StoneFusion Technology are property of StoneFly Networks, Inc. BakBone Software, the BakBone logo and NetVault are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other company and product names contained herein are property of their respective owners.