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1.14.2003
ManagedStorage International Acquires DataVault Data Protection Business from Sanrise, Inc.

Broomfield, Colo. -- January 14, 2003 - ManagedStorage International, Inc. (MSI) announced today the completion of $22 million in equity funding and the acquisition of substantially all of the assets related to the DataVault storage services business of Sanrise, Inc.

On Thursday, January 9, ManagedStorage completed $22 million in equity funding led by Tudor Ventures with participation by current ManagedStorage investors, Great Hill Partners and J.P. Morgan Chase & Co. MSI hired investment banker Innovation Advisors to assist and advise the company with the equity raise.

"We are happy to complete this round of funding and are enthusiastic to work with Tudor Ventures," said Thomas P. Sweeney III, president and CEO of ManagedStorage. "The investment validates our business strategy of offering affordable data protection services to businesses regardless of data type or location. I am especially pleased that Great Hill Partners, our original investor, has continued to support the company and was instrumental in getting this round of funding and the acquisition completed."

"MSI's solid management team and their proven data protection services made this a compelling investment," said Rick Williams, partner of Tudor Ventures. "We strongly believe that companies will accelerate their outsourcing of data protection services, and MSI's unique service offerings will make them the preferred provider."

On Friday, January 10, MSI completed the acquisition of substantially all of the assets of Sanrise's DataVault bsuiness through the bankruptcy court. The acquisition includes customers, storage infrastructure, and software in 24 data centers in the US, London, Paris and Tokyo, as well as personnel in the US and London. The acquisition brings MSI's total number of storage data centers to 45, with services now being available in Europe and Japan.

"We are excited to add the DataVault customer base to our current portfolio, and look forward to providing the same high level of service these customers are accustomed to receiving. The acquisition significantly expands our market availability in the US and opens new and profitable markets in London, Paris and Tokyo," said Sweeney. "In addition, these customers will now have the opportunity to purchase remote data protection services from our large network of service provider partners and value added resellers."

"Gartner studies show that companies are becoming more comfortable with outsourcing backup and recovery," said Adam Couture, Sr. Analyst with Gartner. "Through the DataVault acquisition, ManagedStorage should reach critical mass in their ability to address the growing market for remote backup."

MSI's RemoteStorTM service can protect any company's data remotely via a broadband connection. With millions of businesses served by high-speed Internet connections, the number of companies that can benefit from the use of RemoteStor is significant. RemoteStor guarantees that a company's data is backed up daily, stored securely off-site in one of MSI's data centers, and is available for isntant recovery anytime, anywhere.

ManagedStorage expects to complete the integration of the DataVault business during the first quarter of 2003. "When the integration is complete, MSI will be one of the largest storage service providers and expects to end the first quarter of 2003 with positive cash flows from operations," said Sweeney.

About ManagedStorage International:
ManagedStorage International provides storage management services to enterprise and service provider customers in the US, UK, France, and Japan. MSI uses its proprietary GridWorksTM management system to deliver guaranteed data management and data protection services across all types of storage systems both onsite and remotely. The company manages over three petabytes of data for existing customers. The company was formed in April 2000 and is privately held. ManagedStorage is headquartered in Broomfield, Colorado. For a complete description of ManagedStorage services and for a list of MSI's partners, visit the company's web site at www.managedstorage.com.