For more information, contact:
Steve Siegel
Arsenal Digital Solutions™
919-466-6707
ssiegel@arsenaldigital.com

Arsenal Digital Solutions™ RECOGNIZED BY DELOITTE & TOUCHE AS THE TENTH FASTEST GROWING TECHNOLOGY COMPANY IN NORTH CAROLINA

CARY, NC — August 30, 2004 — Arsenal Digital Solutions™, the leading global provider of Storage Management Services (SMS) and a major revenue enabler for hosting and network service providers, today announced it has been named for the third consecutive year to Deloitte & Touche's prestigious North Carolina Technology Fast 50 program. The program ranks the 50 fastest growing technology companies in the state based on the percentage of growth in fiscal year revenues over five years, from 1999–2003.

Arsenal is the fastest growing provider of data protection and business continuity services in North America . Led by CEO Frank Brick, Arsenal had a landmark year in 2003, growing its annual revenues by 75 percent. Among its accomplishments, Arsenal managed 3.5 Petabytes of production data while performing 1.7 million backups and 2,500 restores that were 100 percent successful. It also added new partners, introduced two new services and expanded internationally. Arsenal's footprint now spans 62 data centers in 35 cities worldwide.

“The Deloitte & Touche North Carolina Technology Fast 50 companies show the strength, vision and temerity to succeed despite a technology environment that continues to pose new challenges,” said Dave Hunt, Deloitte & Touche partner in charge of the North Carolina Technology, Media & Telecommunications Group. “We applaud the successes of Arsenal Digital Solutions™ and acknowledge its place as one of the very few to accomplish such a fast growth rate for the past five years and beyond.”

“Arsenal experienced a tremendous year of growth on all fronts — revenue, customers and partners — which helped us jump from number twenty on last year's list to number ten this year,” said Frank Brick, chairman and CEO, Arsenal Digital Solutions™. “Being honored by Deloitte & Touche for three years running as one of North Carolina's fastest growing technology companies validates Arsenal's business model and its ability to innovate. There's a very strong message in being able to provide reliable, worry-free and cost-effective data protection and business continuity services.”

Arsenal Digital Solutions™, the leading Storage Management Services (SMS) provider, drives high-margin revenue for hosting and network service providers through value-added, on-demand storage services. Leveraging its proven services architecture and storage expertise, Arsenal delivers a comprehensive and flexible suite of data protection and business continuity services through its partners to more than 800 customers in 62 data centers in 35 cities worldwide. Headquartered in Cary , N.C. , Arsenal is a privately held, venture-backed company. For more information on Arsenal, its solutions and services, visit www.arsenaldigital.com.

Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting services through nearly 30,000 people in more than 80 U.S. cities. The firm is dedicated to helping its clients and its people excel. Known as an employer of choice for innovative human resources programs, Deloitte & Touche has been recognized as one of the “100 Best Companies to Work For in America ” by Fortune magazine for six consecutive years. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. Deloitte & Touche is the US national practice of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity. For more information, please visit Deloitte & Touche's web site at www.deloitte.com/us.

Arsenal Digital Solutions™ is a service mark of Arsenal Digital Solutions™. All other trademarks and service marks mentioned herein are property of their respective owners.