Softheon, Inc., the emerging leader in healthcare best business practices software, and FalconStor Software (NASDAQ: FALC), the provider of TOTALLY Open™ data protection solutions, today announced that the two companies have signed a memorandum of understanding to enter into a strategic partnership. The collaboration will allow Softheon to deploy FalconStor’s technology to create cloud-based data protection services tailored for the healthcare market.

“Softheon’s business model focuses on delivering to the healthcare market best business practice solutions that will drive bottom-line benefits for healthcare payers, empowering them to improve competitiveness and comply with regulations,” said Eugene Sayan, president and chief executive officer of Softheon. “By incorporating the field-proven data protection solutions for cloud-based storage services, we will extend our portfolio of best practices into the protection, recovery and archiving of our customers’ mission-critical data.”

“A partnership with Softheon will extend our robust data protection solutions – already in use by some of our partners to deliver cloud-based backup and disaster recovery – into the rapidly growing market for managed services for healthcare,” said Jim McNiel, chief strategy officer for FalconStor. “FalconStor has been providing healthcare customers with leading-edge data protection solutions for many years; together with Softheon, we will enhance our presence in healthcare while expanding our enablement of cloud-based storage services.”

Softheon delivers imaging and content management, workflow, business process management and analysis, data integration and reporting software with its Softheon Service Oriented Architecture (SOA) framework. Softheon managed services are configured to build and deploy client-defined solutions in critical areas like Medicare Part D processing, grievance and appeals, enrollment and new business, provider operations, claims, member services, authorizations and other services.

Softheon is a sponsor of America's Health Insurance Plans (AHIP) Institute 2010 on June 9-11 in Las Vegas, and is exhibiting with FalconStor in booth number 801 .

About FalconStor Software

FalconStor Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data protection. FalconStor delivers proven, comprehensive data protection solutions that facilitate the continuous availability of business-critical data with speed, integrity and simplicity. The Company’s TOTALLY Open™ technology solutions, built upon the award-winning IPStor ® platform, include the industry leading Virtual Tape Library (VTL) with deduplication, Continuous Data Protector (CDP), File-interface Deduplication System (FDS), and Network Storage Server (NSS), each enabled with WAN-optimized replication for disaster recovery and remote office protection, and the HyperFS™ file system. FalconStor products are available as OEM or branded solutions from industry leaders, including Acer, Data Direct Networks, Dynamic Solutions International, EMC, Huawei, Pillar Data Systems, SGI, SeaChange and Spectra Logic and are deployed by thousands of customers worldwide, from small businesses to Fortune 1000 enterprises.

FalconStor is headquartered in Melville, N.Y., with offices throughout Europe and the Asia Pacific region. FalconStor is an active member of the Storage Networking Industry Association (SNIA). For more information, visit or call 1-866-NOW-FALC (866-669-3252).

About Softheon

Softheon, an emerging leader in next generation healthcare business process optimization, enables payer, provider and government organizations to measurably reduce administrative cost, improve member and provider satisfaction, generate new revenue opportunities and comply with regulatory compliance by adopting best business practices. For more information, call Softheon at 631-390-1100 or visit

FalconStor, FalconStor Software and IPStor are registered trademark and TOTALLY Open and HyperFS are trademarks of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.

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