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Hifn Expands Reseller Ranks with Business Continuance Specialist Xdata Corp.

LOS GATOS, Calif., May 28, 2008 – Hifn™ (NASDAQ: HIFN), the catalyst behind storage and networking innovation, today announced that it has signed Xdata Corporation as the latest addition to its roster of resellers for the award-winning Swarm™ secure iSCSI appliance product line.

Xdata, based in Greenwood Village, CO, is a storage solution specialist with a core competency in business continuance. Using proven methodologies and best practices developed from real life experience, the company designs and implements custom solutions for data storage, backup and recovery, data replication, storage management, SANs, NAS, iSCSI, IP SANs, compliance, and disaster recovery.

By signing on to Hifn’s Channel 100 Partner Program for the company’s Swarm products, Xdata Corp. gains access to a broad range of reseller resources, such as training webinars, lead generation, product spiffs, joint customer visits with Hifn storage experts, discounted demo units, public relations and telemarketing support, and event and marketing program support based on sales volume.

“We’re delighted to add Hifn to our roster of innovative storage vendors,” said Tom Harrity, President at Xdata. “Hifn’s Swarm appliance fills a key spot in our product lineup by creatively blending the latest storage technologies, including iSCSI, integrated encryption, high-performance SATA disk drives and local and remote replication, to deliver a simple-to-deploy and easy-to-use iSCSI SAN appliance for SMB and SME customers. By providing us a presence in the iSCSI SAN market, Hifn has extended our ability to provide intelligent storage solutions.”

“Xdata Corp. fits Hifn’s prototype for the class of VARs we’re looking for – ones who have the proven expertise and market awareness to create value-added storage solutions around the Swarm Secure iSCSI appliance,” said John Matze, Vice President Business Development at Hifn. “There’s great synergy between Hifn and Xdata Corp. in the way we view the market. We believe the Swarm products are a perfect complement to Xdata Corp.’s current product lineup.”

To kick off the new partnership, Hifn and Xdata will host a “Lunch & Learn” event on June 26th at the Capital Grill in Denver starting at 11:30am. Attendees will have the opportunity to meet with Xdata Corp. and Hifn representatives to discuss their specific storage and data protection requirements and will learn about the server consolidation, storage virtualization and data encryption capabilities enabled with the latest iSCSI IP SAN Appliance from Hifn. Businesses interested in attending the event can contact Annika Hafner at Hifn at channeldevelopment@hifn.com.

About Swarm IP SAN Appliances from Hifn
The Swarm is a series of IP SAN appliances that delivers the benefits of storage networking to small and mid-sized business that want encryption, storage consolidation, centralized management, automatic backup, high availability and seamless integration with the Microsoft operating environment. The Hifn Swarm Series of iSCSI storage appliances provides an ideal IP SAN storage alternative to complex and costly Fibre Channel products with up to 9.75 terabytes of RAID-6 protected storage along with a full suite of storage services, including encryption, replication, point-in-time copy backup used for Windows Volume Shadow copy Service (VSS)-consistent snapshots and multipath I/O for high availability active-active configurations. Swarm IP SAN solutions are available now starting at $8,995. For more information please visit: http://www.hifn.com/appliance.

About Xdata Corp.
The storage experts at Xdata Corp. help companies better understand their storage and backup requirements by operating with clients as a true business partner. Xdata Corp. offers objective assessments, solution designs, project management, integration/implementation services, system testing, knowledge transfer, and great listening skills that translate into and unmatched ability to deliver storage solutions and services that meet the customer’s technical and financial goals and provide strong business ROI.

About Hifn
Hifn (NASDAQ:HIFN) delivers the key channel and OEM ingredients for 21st century storage and networking environments. Leveraging over a decade of leadership and expertise in the development of purpose-built Applied Services Processors (ASPs), we are a trusted partner to industry leaders for whom infrastructure innovation in storage and networking is critical to success. With the majority of secure networked communications flowing through Hifn technology, the 21st century convergence of storage and networking drives our product roadmap forward. For more information, please visit: www.hifn.com.

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