Coraid Inc. and BASIS, a leading German Storage Integrator enter into Reseller Argeement

Moscone Center, San Francisco, August 2, 2004- Coraid Inc. and BASIS Advanced Information Technologies GmbH announced today at the LinuxWorld Conference and Exposition that the companies have entered into a reseller agreement concerning Coraid’s innovative networked storage product EtherDrive. BASIS, a major player in European storage system integration will now sell EtherDrive to end users throughout Germany and neighboring countries.

"A reseller agreement with a leading European storage integrator like BASIS provides a wonderful opportunity for Coraid" said Jim Kemp, CEO of Coraid Inc. "This establishes a foothold for EtherDrive in and around Germany and will help Coraid reach its goal of global presence. We know that the Linux/Open Source movement is alive and well overseas and are confident that EtherDrive will be recognized as a smart choice for direct network attached block storage. We are pleased that BASIS will now offer this choice to its customers.

Stefan Fischer, Managing Director of BASIS says "We are extremely excited for our company and our customer base to now be aligned with such an innovative storage solution. This agreement allows BASIS to satisfy the growing demand for low cost, direct network attached storage in a Linux environment. When existing technologies such as Fiber Channel prove cost prohibitive to smaller enterprises, we can now offer a simpler, scalable and less expensive alternative to these clients."

Coraid’s EtherDrive provides a low cost networked storage solution using Ethernet connections between the server and a shared storage array (pool). Multiple servers can access a common disk storage system eliminating wasted captive storage. With EtherDrive, the storage pool can be expanded easily with simple Ethernet connections. Storage array performance is limited only by the number of disks configured for striping or RAID and the speed of the Ethernet connection at the server.

About Coraid

Founded in 2000, Coraid is focused on developing, manufacturing and supporting innovative solutions for networked storage. Its core value is simplicity. Its mission is to make storage easier and more affordable for any server application. Coraid uses the Open Standard ATA-over-Ethernet (AoE) protocol in its EtherDrive Storage Blade products. This powerful and efficient protocol leverages the cost advantages of Ethernet to provide networked storage access at speeds even faster than Fiber Channel networking. AoE couples the lowest cost disk storage technology (ATA disk drivers) with the lowest cost, high performance networking technology (GigaBit and 10 GigaBit Ethernet). Open Source drivers are available for various operating systems, including Linux. Coraid is a privately held company with corporate headquarters in Athens, Georgia. More information can be found at www.coraid.com.

About BASIS GmbH

BASIS Advanced Information Technologies GmbH, was founded in 1995 and is based in Munich (Germany). BASIS has taken a leadership position in storage management and data recovery solutions. The main business goal of BASIS is to provide state of the art storage technology solutions to European enterprises. BASIS is focused on the design and deployment of large heterogeneous Storage solutions, with emphasis on storage virtualization, virtual tape libraries (VTL), backup and archiving. For further Information: http://www.basis.biz

PRESS CONTACT:
Chris Fernstrum
Breakaway Consulting
678-794-3142
chris@coraid.com

CORAID CONTACT:
Jim Kemp
Coraid Inc.
877-548-7200
jim@coraid.com

BASIS CONTACT:
Stefan Fischer
BASIS GmbH
+49-89-358-7360
sfischer@basis.biz