FalconStor Completes Network Peripherals Reverse Merger

FalconStor, Inc. today announced thecompletion of its reverse merger with Network Peripherals Inc..

The merged company has adopted the name FalconStor Software, Inc.. As a result of the transaction, FalconStor is now listed on the Nasdaq National Market and will trade under the symbol FALC.

As a result of the merger, the formerly known Network Peripherals or NPI, has a total of approximately 44.7 million shares of common stock outstanding. Of these shares, approximately 13.4 million, or 30 percent, are held by stockholders of the former NPI and approximately 31.3 million, or 70 percent, were issued by NPI to stockholders of the pre-merger FalconStor, which was privately held.

As indicated on May 7, 2001, when the definitive merger agreement was announced, the merged company has adopted FalconStor’s business strategy, and will be headed by a management team led by FalconStor President and Chief Executive Officer ReiJane Huai. In the 1990s, Mr. Huai built Cheyenne Software into an industry leader in server-based backup, security and communications solutions, culminating in Cheyenne’s acquisition by Computer Associates in a $1.3 billion transaction in 1996.

Mr. Huai said, “This transaction establishes FalconStor as an emerging leader in storage networking software. We now have the strategic, operational and financial flexibility that comes with being a publicly traded company with a significant cash position sufficient to fully fund the continued aggressive implementation of our business plan. In short, we now have the business strategy, leading-edge technology, products, people, strategic relationships, and financial strength needed to capture what we believe is a major market and value-creation opportunity.”

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