ARSENAL DIGITAL SOLUTIONS ACHIEVES SAS 70 TYPE II CONFORMITY FOR SECOND CONSECUTIVE YEAR

Arsenal Digital Solutions®, the leading provider of Storage Management Services (SMS), today announced that its data protection, business continuity, disaster recovery and regulatory compliance services continue to meet the Statement on Auditing Standards No. 70 Type II (SAS 70). This is the second consecutive year that Arsenal has met the internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA).

A SAS 70 audit or service auditor's examination is widely recognized because it signifies that a service organization has been through an in-depth audit of its control activities, which generally include controls over information technology and related processes. In today's global economy, service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their customers. In addition, the requirements of Section 404 of the Sarbanes-Oxley Act make SAS 70 audit reports even more important to the process of reporting on effective internal controls at service organizations.

A leading independent accounting and auditing firm evaluated and tested each Arsenal service. According to the firm's report, the services' control policies and procedures meet all the key requirements for achieving the SAS 70 standard.

"Recent high-profile events have exposed just how easily data can be compromised, even while companies are trying to ensure its protection and availability," said Sam Sigarto, COO of Arsenal Digital Solutions. "In 2005, a year that is now being called the worst year ever for data-security breaches, companies repeatedly went through the public relations nightmare of losing personal, sensitive data at some point in the custody chain. These events underscore that somewhere along the line, major security oversights have worked their way into the process of protecting data throughout its lifecycle and revealed that what you don't know about the relationship between storage and security can significantly harm a company's reputation and, more importantly, profitability. Our customers can continue to rest assured knowing that we provide stringent controls that offer the highest level of availability, accessibility and security for their mission critical data."

About Arsenal Digital Solutions
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, business continuity and regulatory compliance services through its partners to customers in 30 data centers in 20 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.

Arsenal Digital Solutions is a trademark of Arsenal Digital Solutions USA, Inc. All other trademarks and service marks mentioned herein are property of their respective owners.

For more information, contact:

Steve Siegel
Arsenal Digital Solutions
919-466-6707
ssiegel@arsenaldigital.com

David Resnic/Thomas Keane
Schwartz Communications, Inc.
781-684-0770
arsenal@schwartz-pr.com