St. Paul, MN - December 14, 2004 Intradyn announced today the launch of a network of service partners offering a revolutionary online data backup service using its award-winning RocketVault™ backup and archiving appliance. The service gives small and midsized businesses (SMBs) significant advantages compared to other online backup services available to them today - specifically, lightning-fast restores and advanced data security - both lacking with traditional online backup services, often called e-vaulting or electronic vaulting.

"Customers of existing online services are living in a world of slow restores and a false sense of security," said Gary Doan, Intradyn founder and CEO. "The RocketVault™ appliance, combined with the companion offsite service provided by our partners, is a whole new breed of solution."

The appliance/service solution offered through Intradyn's Certified Managed Service Provider Program enables both secure onsite and secure off-site backup. It is an end-to-end managed system with an appliance onsite and the service provider managing offsite backup. As such, it removes the need for the customer to staff and operate its own remote disaster-recovery site. Onsite backup resides at the customer site on their own RocketVault™ disk-based appliance. Offsite backup is achieved via the RocketVault™ sending the customer's encrypted data to the service provider's remote site for disaster recovery purposes - as protection against fire, flood, or other damage at the customer's own site. The data can be stored both locally and remotely in AES 256-bit encrypted form, the highest level of protection available.

"We encrypt the complete backup - not just the data as it's being transmitted, as other online services do, which they then unencrypt at the destination. In that approach, the customer's data is not fully protected on the remote storage server," Doan said. "With the RocketVault™ solution, the encrypted files are 100% secure, on both the local and remote storage. This kind of security just hasn't been available for small or midsized businesses till now - and we make it affordable, too."

Because the data is backed up redundantly, both onsite and off, the customer can do restores at lightning-fast network speeds locally - not at the slow line speeds common with connections to a remote service provider. "For example," said Doan, "a restore is up to 400 times faster with local 100-gig Ethernet LAN speed, compared to doing it over a 256K DSL line from a remote location."

A Growing Market
Industry vendors now say the SMB market accounts for more than half of all IT spending. In addition, IDC research shows that 53% of organizations either don't have a backup strategy at all, or rely on users to back up to a network drive.

"Corporate data is just as important to an SMB as it is to the largest enterprise, and so are the recovery services that protect it," said Mike Karp, senior analyst at Enterprise Management Associates. "Unfortunately, despite the fact that the SMB marketplace shows high growth and high need, the industry still has made relatively few services available to it. The RocketVault appliance would seem to stand alone as a provider of high performance set-it-and-forget-it backup and recovery services for the SMB market. That, plus its inherent capabilities as a target for data migration, make it an effective dual-purpose offering at a highly competitive price."

The new RocketVault™ backup service service facilitates information lifecycle management (ILM), by allowing the customer to migrate data by moving it to the offsite service provider, who can then ship it back on lower cost tape or long-life optical storage media for archival purposes.

The RocketVault™ "Certified Managed Service Provider Program"
Intradyn's network of service providers is being launched with several certified partners, each of which has completed certification testing and training and is actively selling the solution in its respective market. "The overall market for off-site SMB backup services is huge," said Intradyn's Doan. "There are 5 million such businesses in the U.S., and 8 million worldwide. With that much opportunity, and such a growing awareness of the need for better backup, we expect our partner network to expand rapidly."

In short, the service provides the customer with four important benefits that are not available collectively with any other online backup service:

• Stores data locally in addition to remotely (faster restore)
• Provides real encryption (not just a secure line)
• Has more data management features (managed by user and/or service provider)
• Safer (local and remote redundancy)