EXHIBIT 99.1
FalconStor Releases An Additional 15% Of Shares Under Extended Lock-Up Period Of
April 30, 2003 For Stockholders of the Former FalconStor, Inc.
MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 16, 2002--FalconStor Software, Inc.
(Nasdaq: FALC - news) announced today that its Board of Directors has decided to
release on January 17, 2002 approximately an additional 15% of the shares of
common stock subject to lock-up agreements expiring on April 30, 2003.
This is in addition to the 10% release of shares announced on Monday, January
14.
All holders of shares, except Principal Stockholders, of common stock issued to
the former stockholders of FalconStor, Inc., in connection with its reverse
merger with Network Peripherals, Inc. in August 2001 (a total of 31,316,599
shares of common stock were issued in the merger) who have agreed to the
extended lock-up period for their shares of FalconStor's common stock to April
30, 2003, are eligible for this additional release period.
The shares subject to the lock-up include approximately 22,188,671 shares held
by ReiJane Huai, the Chairman, President and Chief Executive Officer of
FalconStor, Irwin Lieber, Barry Rubenstein and certain investment partnerships
affiliated with them and certain other large stockholders (the "Principal
Stockholders"). The 15% release of shares does not apply to the shares held by
the Principal Stockholders.
"This additional release of 15% of stock should help continue an orderly release
of shares onto the open market. The Board of Directors believe that this round
of an additional 15% release of the lock-up is appropriate at this time due to,
among other things, current market conditions," said ReiJane Huai. "The Board of
Directors are very pleased that the last round of released shares was absorbed
quickly by the market."
FalconStor's Board of Directors does not intend to release any additional shares
at the present time but will continue to evaluate the release of shares subject
to the lock-up based upon various factors including market conditions, advice of
its investment bankers and market makers and the Company's operating
performance.
The lock-up agreement continues to provide that the Board of Directors of the
Company may, in its sole discretion, release any and all of the shares from the
lock-up restrictions. The Principal Stockholders have further agreed, in the
event that the Board releases any additional shares of common stock from the
lock-up prior to April 30, 2003, that none of their shares will be released from
the lock-up until all other stockholders subject to the extended lock-up have
been given the opportunity to have all their shares subject to the lock-up freed
up for sale.
About FalconStor
FalconStor Software, Inc. (Nasdaq: FALC - news) helps enterprises rise above
ever-expanding storage complexities and costs by providing a state-of-the-art
software-only storage networking solution, consolidating storage management
while drastically improving storage efficiency and quality of service. With
unprecedented manageability, performance, security, and flexibility,
FalconStor's flagship product, IPStor(TM) transcends the limitations that have
historically confined SANs to local data centers.
Founded in 2000, FalconStor is headquartered in Melville, NY. International
offices include Paris, Tokyo and Taichung, Taiwan. FalconStor is a voting member
of the Storage Networking Industry Association (SNIA).
This press release includes forward-looking statements that involve risk and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. These risks and uncertainties include: the early
stage of FalconStor's business; delays in product development; market acceptance
of FalconStor's products and services; technological change in the storage and
networking industries; competition in the storage networking software market;
the ability to achieve profitability; intellectual property issues and other
disputes; and other risk factors discussed in FalconStor's reports on Forms
10-K, 10-Q and other reports filed with the Securities and Exchange Commission.
FalconStor and IPStor are trademarks of FalconStor Software, Inc. All other
company and product names contained herein are trademarks of the respective
holders.
CONTACT:
FalconStor Software, Inc.
Herman Chin, 631/962-1163
Public Relations
or
Christine Rogers, 631/962-1160
Investor Relations
