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                                                               [CROSSROADS LOGO]


FOR IMMEDIATE RELEASE

For more information on Crossroads Systems, please contact:
Reagan Y. Sakai
Crossroads Systems, Inc.
512.794.2799
investor@crossroads.com

           CROSSROADS COMPLETES ACQUISITION OF POLARIS COMMUNICATIONS,
                       BOOSTS ENTERPRISE SANS CAPABILITIES

AUSTIN, Texas - March 22, 2000 - In a move that boosts its capabilities in
enterprise storage area networks (SANs), Crossroads Systems, Inc. (NASDAQ:
CRDS), the leading developer and manufacturer of storage routers for use in
Fibre Channel SANs, today announced it has completed the acquisition of Polaris
Communications of Portland, Ore.

On Feb. 3, 2000, Crossroads announced the execution of a definitive agreement to
acquire Polaris Communications, a privately held designer, developer and
marketer of S/390 mainframe communication interfaces and systems. This
acquisition adds another set of protocols to Crossroads' storage routing
capabilities and will further Crossroads' commitment to interoperability between
the many S/390 components and open-systems SANs. The S/390 market is a key
strategic growth area for Crossroads, and this acquisition will enable
Crossroads to bring its open system SAN expertise to larger enterprise systems
where over 70 percent of the world's data is stored.

Polaris Communications' technologies deliver increased connectivity and
bandwidth options to enterprise data centers, focusing on high-speed connections
between open systems and mainframes. Crossroads will utilize Polaris
Communications' expertise and experience to deliver high-speed data connections
between Fibre Channel SANs and ESCON and future FICON technologies in enterprise
data center environments.

For the past 10 years, Polaris Communications has been delivering new
channel-based solutions, custom products and integration services that have
consistently met customer and partner requirements while delivering measurable
value. Their products significantly improve throughput performance of all data
management operations such as data warehousing, backup and recovery, and data
consolidation. Polaris Communications' quality products will complement
Crossroads' industry-leading open-systems SAN solutions, such as LAN-free
backup, a storage solution enabled by Crossroads' storage router that delivers
improved backup/restore capacities and provides centralized data protection.


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PAGE 2/CROSSROADS COMPLETES ACQUISITION OF POLARIS SYSTEMS


In connection with the acquisition, Crossroads will issue 450,000 shares of its
common stock for all of the outstanding stock and options of Polaris
Communications. The transaction will be accounted for as a purchase.

ABOUT CROSSROADS SYSTEMS, INC.

Headquartered in Austin, Texas, Crossroads Systems (NASDAQ: CRDS) is the leading
provider of storage routers for Fibre Channel Storage Area Networks (SANs).
Crossroads' storage routers enable key intranet, Internet and e-commerce
applications. By using storage routers and SANs, customers can more effectively
and efficiently store, manage and ensure the integrity and availability of data
in the Internet economy. Crossroads supplies its customers with the Crossroads
Verified SAN (CV-SAN) solution guide to simplify SAN design and installation,
accelerate SAN adoption, and verify interoperability of SAN solutions. The more
than 3,000 verified configurations in CV-SAN are available on the Web using the
Crossroads online configurator at www.crossroads.com. Industry leading OEMs such
as ADIC, ATL, Bull, Compaq, Dell, Exabyte, Hewlett-Packard, Hitachi Data
Systems, McDATA, Fujitsu-Siemens and StorageTek as well as top resellers and
distributors including Acal Electronics, Bell Microproducts, Cranel, Datalink,
ITIS Services, nStor, Pinacor, Polaris Services and Vangard Technology have
partnered with Crossroads to provide these solutions to their customers. For
more information on Crossroads Systems, its products or employment
opportunities, please call (800) 643-7148 or visit www.crossroads.com.


FORWARD-LOOKING STATEMENTS

This release may contain forward-looking statements that involve risks and
uncertainties. Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are: Crossroads'
limited operating history which makes it difficult to accurately predict
revenues and budget for expenses for future periods; the extent of Crossroads'
future operating losses and negative cash flow; the dependence of Crossroads'
business on the storage area network market which is new and unpredictable;
Crossroads' ability to develop new and enhanced products that achieve market
acceptance; the continuation of Crossroads' successful relationships with its
limited number of OEM customers; Crossroads' ability to retain and recruit key
personnel to manage its business successfully; the quarterly fluctuations of
Crossroads' operating results; Crossroads' ability to integrate or successfully
achieve the benefits of the acquisition of Polaris Communications and any
subsequent acquisition or strategic relationship; and that Crossroads' stock
price could be volatile regardless of Crossroads' actual financial performance
and other factors detailed in Crossroads' filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K and Quarterly
Reports on 10-Q.

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