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DILIGENT TECHNOLOGIES ENTERS STORAGE SOFTWARE MARKET

Responding to the growing demand for immediate access to secure, business information within the most complex and data intensive environments, Diligent Technologies Corporation has announced its entry into the storage software market. After acquiring R&D assets, resources and several significant storage software technologies from EMC Corporation, Diligent formally launches and introduces the general availability of its tape virtualization solution -- Tape Virtualization - Mainframe Systems.

Led by former EMC executive and storage industry veteran Doron Kempel, Diligent is an independent and private company delivering solutions and services to customers requiring continuous availability, ease-of-management and protection of mission-critical data. With storage capacity demands quadrupling every year, Diligent's initial focus is on customers currently challenged by shrinking backup and recovery windows, enhanced disaster recovery solutions, and a more economical total cost of ownership model.

Through the agreement, Diligent acquired several technologies from EMC that span different storage software categories and apply to both open systems and mainframe environments. The first of these technologies is known as Tape Virtualization - Mainframe Systems, which is known by EMC's customers as CopyCross.

Diligent will continue to develop and sell its Tape Virtualization - Mainframe Systems solution and through a non-exclusive reseller agreement, EMC will continue offering this solution under the brand CopyCross. Additional enterprise-class storage solutions acquired from EMC will be announced and brought to market at a later date.

"Instant and reliable access to critical information has transitioned from a competitive advantage to a business imperative," said Doron Kempel, Chairman and CEO of Diligent Technologies Corporation. "Organizational reliance on information generated through data-intensive applications is rapidly increasing. Diligent's products are positioned to address such challenges. Our immediate goal as a new Company is to demonstrate immediate value to our customers, partners and reseller channels through focus on execution and innovation."

"Diligent's solution enables the biggest Multiple Virtual Storage (MVS) shops to completely alter the way they perform backup and recovery -- saving them time and money," said Steve Duplessie, Founder and Senior Analyst for Enterprise Storage Group. "This is one of the first practical examples of the inevitable paradigm shift whereby we will move from a disk to tape world to a disk to other disk backup and restore world."

The Company also obtained one of the storage industry's premier research and development teams based in Israel. The team of more than 65 engineers will provide continued advancements to the existing product line and drive the development of new enterprise-class storage software solutions to meet the growing market demand.

With advances in storage networking and the demand for new low-cost storage options, IDC recently noted that the storage software market will more than double by 2006 reaching $13.6 billion. It is this market landscape and opportunity that enables Diligent to immediately establish a strong presence with a dedicated focus on innovation, execution and customers.

Initial Product Offering

Tape Virtualization - Mainframe Systems is software that transparently and automatically directs sequential data to disk in a Multiple Virtual Storage (MVS) environment, enabling organizations to enhance their tape-based application performance, manage tape data as disk data and provide the capability for unparalleled disaster recovery. Technology advancements have now made it possible to deliver all the benefits of disk-based backup and recovery--such as reducing the batch window of time it takes to complete jobs--increasing productivity and lowering the total cost of ownership over tape-based systems to one automated solution.

Product Availability

Tape Virtualization - Mainframe Systems is immediately available and is already deployed in over 30 customer locations spanning various vertical market segments. See www.diligent.com for more information on this solution.

About Diligent Technologies Corporation

Diligent Technologies Corporation provides enterprise-class storage software solutions to Global 2000 companies to ensure the continuous availability, ease-of-management and protection of mission-critical data. The Company is dedicated to adding immediate value to its customers and partners and meeting their growing data management needs and business goals. Diligent's storage management solutions and professional services are available through its reseller and partner channels along with sales, service and research and development support located worldwide. Information on the Company's storage solutions is available on the World Wide Web at www.diligent.com, tel: 508-620-4764, fax: 508-879-0698, e-mail: info@diligent.com.

Contact: Melissa Morales, Diligent Technologies Corporation, 508-620-4764x7573, morales--melissa@diligent.com.