Bycast Announces IBM Deal

VANCOUVER -- Bycast Inc., the leading provider of grid-powered storage management software,

today announced that Bycast and IBM have entered into an original equipment manufacturing (OEM) software licensing

agreement that will enable IBM to deliver IBM branded products based on Bycast StorageGRID® software. Under the OEM

agreement, Bycast StorageGRID software will become the basis for IBM System Storage Grid Access Manager Software.

In addition, IBM will also utilize Bycast’s File System Gateway technology to provide a standard CIFS/NFS interface forthe IBM System Storage DR550. Both IBM Grid Access Manager and IBM DR550 File System Gateway were recently

announced as new products in IBM’s System Storage product portfolio (see IBM announcements at:

http://www-03.ibm.com/press/us/en/index.wss ).

“Our customers worldwide are faced with the growing challenge of efficiently managing and securing retention managed

data and other critical information assets with operational efficiency” said Craig Butler, Business Line Executive, Archive,

IBM System Storage. “Through our work with Bycast, IBM will continue to deliver innovative archiving solutions thatprotect data and simplify management of massive archives”.

The expanded relationship builds on a proven product with market success and passionate customers. Since June 2005, IBM

and Bycast have been jointly delivering the IBM Grid Medical Archive Solution - a reference data archiving solution

targeted at the healthcare sector. The OEM agreement will enable the delivery of IBM branded data archiving products for

multiple verticals worldwide.

“We are enthusiastic that our expanded rela tionship with IBM now makes StorageGRID technology available to IBMcustomers worldwide” said Dr. Moe Kermani, President and CEO of Bycast. “We are also pleased that IBM has selected

StorageGRID as an integral part of their archiving product strategy.”

Bycast Inc.

IBM Corp.