EXHIBIT 99.1
Monday January 14, 8:51 am Eastern Time
FALCONSTOR EXTENDS LOCK-UP OF STOCK FOR MERGER
MELVILLE, N.Y., Jan 14 - Storage networking software maker FalconStor Software
Inc. (NasdaqNM:FALC) said on Monday it has extended the lock-up period of its
shares related to its reverse merger with Network Peripherals Inc. in order to
provide an orderly release of shares into the open market.
FalconStor said substantially all of the holders of common stock issued to
former shareholders in connection with its reverse merger have agreed to extend
the lock-up period for their shares to April 30, 2003, from August 22, 2002.
The shares subject to the lock-up include about 22.2 million held by its
principal stockholders: FalconStor Chairman and Chief Executive ReiJane Huai;
Irwin Lieber, Barry Rubenstein and certain investment partnerships affiliated
with them; and certain other large stockholders.
The lock-up agreement allows the board to release any and all of the shares from
the lock-up restrictions at its discretion, FalconStor said. The board has
decided to immediately release about 10 percent of the shares of common stock
subject to lock-up agreements. The release does not apply to the 22.2 million
held by the principal stockholders.
The principal stockholders have agreed, in the event that the board releases
shares of common stock from the lock-up prior to April 2003, that none of their
shares will be released from the lock-up until all other stockholders have been
given the opportunity to have all their shares freed up for sale.
