Softek Continues Seventh Consecutive Quarter of Record RevenuesWith Enterprise Data Mobility Solution Growth

Vienna, Virginia, January 18, 2006 – Softek™ Storage Solutions, the leader in non-disruptive data migration solutions, today announced it achieved record revenues during the third quarter of fiscal year 2006, ending December 31, 2005. It represented the seventh consecutive period of realizing record quarterly revenues, and the third consecutive quarter for realizing positive earnings before interest, taxes, depreciation and amortization (EBITDA).

Quarterly new license revenues increased nearly 25 percent over the prior year period. Revenue growth continued to be driven by the company's data migration and data replication offerings, including the first revenues for the Logical Data Migration Facility (LDMF), the industry's only vendor-independent, on-line dataset-level data migration software, co-developed with EMC, which became generally available in November.

Softek enjoyed a healthy channel mix during the quarter, with nearly 70 percent of revenues sold through the company's original storage manufacturer (OSM) partners, which include EMC, Fujitsu, HP, Hitachi Data Systems, IBM and Sun/StorageTek, and network of Softek Synergy Partner Program members. Channel partner revenue for the quarter was balanced between mainframe and open systems offerings.

“Our focus on enabling non-disruptive data movement in both open systems and mainframe environments is paying off in terms of predicable growth and positive cash flow,” said Steven Murphy, president and CEO. “We are preparing for accelerated growth this year as our enterprise data migration solutions across multiple platforms continue to be accepted by our OSM and value-added reseller channel partners.”

During the quarter, ESG Labs completed a validation test of LDMF, concluding it to be a “no-brainer” solution for mainframe environments that need to perform data migrations. One dramatic fact in the report stated a 100 GB data migration using traditional migration software would require more than 37 hours of downtime, compared to only four minutes of downtime with LDMF. Also, depending on the application, downtime with LDMF could be less than four minutes or eliminated. Work was also completed for expanded storage array support for LDMF to support movement of datasets between any similar DASD storage volume, regardless of vendor or specific storage array.