Siafu Sypher™ Tape Encryption Appliances Combine Compression with Encryption to
Help Eliminate the Hidden Costs of Backup Software Encryption

POWAY, Calif., October 31, 2006 -- Siafu Software, a leader in easy-to-install, easy-to-manage encrypted iSCSI solutions for affordable IP storage, today announced Siafu Sypher Encryption Appliances, a series of SAN solutions which securely compresses data and encrypt tapes destined for offsite locations. The Sypher in-line appliance reduces backup server overhead and enhances compliance with governance initiatives such as the Data Accountability Act, California SB 1386; the Identity Theft Protection Act; and the Personal Data privacy and Security Act.

"The growing need for regulatory compliance and the ability to ensure that sensitive data is protected affects businesses of all sizes," said Mike Karp, senior analyst, Enterprise Management Associates. "Companies of every size must ensure compliance without impacting critical system throughput or performance.  Siafu Sypher Encryption appliances provide a cost-effective, easy to deploy and manage security solution for a category of company that is being ignored by the rest of the industry - companies that are too big to be small and too small to be big."

Siafu Sypher further reduces the overall cost of storage management by combining compression and encryption technology into a single appliance-based solution.  Most tape backup vendors supply encryption with their software solution.  However, backup software encryption causes high CPU utilization which can shorten valuable backup windows. Furthermore, tape drive compression is lost when utilizing backup software encryption, because encryption causes data to be in a random format that cannot be compressed.  The loss of tape encryption may require the additional cost of purchasing and managing many more backup tapes. 

Siafu Sypher Encryption Appliances deliver the following key benefits:

• Powerful Data Protection Assurance: Sypher Appliances feature strong hardware based AES 256-bit encryption for removable tape in an easy to manage in-line Appliance. 
• Enhanced Encryption: The Sypher Virtual Encryption Tape Format option further secures tapes by removing all physical attributes/formats from the tape.  Only raw encrypted data remains on the tapes. 
• Simple and Secure Automated Key Management: Sypher generates and stores all encrypted keys and ensures key availability when requested by backup software.
• Easy to Install and Manage: Sypher Appliances integrate seamlessly with servers, tape drives, tape libraries and existing backup software with no manual processing or additional scripts.  The Sypher Central Key Manager allows key storage and central management from a standard web browser.

"The key advantage of tape archives is portability.  However, this may also pose a huge security challenge if unencrypted backup tapes fall into the wrong hands," said John Matze, CEO, Siafu Software.  "Siafu Sypher Encryption Appliances make encryption easy, so companies of any size can securely encrypt their valuable data on tapes destined for offsite locations."

Pricing and Availability
Siafu Sypher Encryption Appliances will be available mid-November 2006 with prices starting at $6,995.  For more information, contact 1-866-5BACKUP

About Siafu Software
Founded in September 2005, Siafu Software's mission is to deliver easy-to-install, easy-to-manage encrypted iSCSI solutions for affordable IP storage, including Siafu Swarm™ IP SAN Appliances which deliver the benefits of storage networking to small and mid-sized business. The company is located close to San Diego in Poway, California. The company's founder and President & CEO, John Matze, is one the original architects of the IETF's iSCSI standard