Levetown & Jenkins, LLP is conducting an investigation into breaches of fiduciary duties and violations of state law by the officers and directors of FalconStor Software, Inc. ("FalconStor") (NASDAQ: FALC). FalconStor develops, manufactures, and sells network storage software solutions and provides services related to those software solutions in the United States and internationally. FalconStor is headquartered in Melville, New York, and was founded in 1989.

On September 29, 2010, FalconStor announced that its founder, ReiJane Huai, had resigned from his positions as Chairman of the Board of Directors, President, and Chief Executive Officer of FalconStor. Moreover, Mr. Huai’s resignation followed his disclosure of allegations concerning improper payments made in connection with a FalconStor contract. In response to the announcement, shares of FalconStor fell to $3.15—a decline of more than 22% from the closing price of $4.06 on the previous day.

Levetown & Jenkins, LLP is a national law firm comprised of former federal and state prosecutors with extensive experience in the investigation and prosecution of shareholder fraud. The firm specializes in the representation of investors in shareholder and securities fraud class actions. If you are a shareholder of FalconStor and would like more information about your rights as a shareholder, please contact Michael P. Lewis, Esq. at (202) 630-6257 or mlewis@levjen.com. For more information about the firm, please visit www.levjen.com.

Attorney Advertising. (C) 2010 Levetown & Jenkins, LLP. The law firm responsible for this advertisement is Levetown & Jenkins, LLP ( www.levjen.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We are happy to discuss your particular case.

Copyright Business Wire 2010