Avnet Technology Solutions Expands Solutions for Data Storage Security with NeoScale Systems

Agreement Enables Avnet’s Partners to Offer Encryption as a Part of a Complete Storage Solution

TEMPE, Ariz.--(BUSINESS WIRE)--Avnet Technology Solutions, Americas, a value-added distributor of enterprise computing products, software and services and an operating group of Avnet, Inc. (NYSE: AVT), today announced a distribution agreement with NeoScale Systems, the trusted leader in enterprise storage security solutions. Avnet will provide services and support for the full suite of NeoScale’s storage security appliances, providing its value-added reseller (VAR) partners with comprehensive solutions for data storage security.

The need to comply with government regulations and standards, combined with rising concerns about the value of data, have increased the adoption of storage encryption solutions as many companies that hadn’t previously considered storage encryption have begun implementing or investing in storage security. According to an IDC Executive Brief sponsored by Avnet, “Storage Encryption: Implementing the Linchpin of Data Security (IDC 452),” respondents were willing to pay at least a 20 percent premium for storage security. Companies now understand that systems, storage, networks and applications need inherent security and encryption key management is a critical must-have for enterprises driven to meet regulatory compliance – especially companies with more than 1,000 servers.

“By aligning with NeoScale, Avnet is accelerating revenue growth for our partners in two critical areas – data security and storage,” said Jeff Bawol, senior vice president and general manager, Enterprise Software and Storage Business Unit, Avnet Technology Solutions, Americas. “Avnet’s partners continue to see tremendous growth in storage sales due to not only market demands, but also our ability to help them deliver complete solutions that meet their customers’ business needs. Because Avnet’s product portfolio includes hardware and software solutions for data storage, data backup, data archive and now data security from the industry’s leading vendors, our partners have the tools they need to effectively grow their storage practices.”

Avnet has a proven track record of helping its partners deliver the industry expertise needed to drive sales of complete enterprise solutions. NeoScale’s channel partners gain a competitive advantage by accessing Avnet’s resources and tools, such as marketing and lead management systems, storage assessment and product demonstration capabilities, pre- and post-sales technical support, solution configuration, professional services, financing options and comprehensive training. These resources create a roadmap to help Avnet’s partners grow their mid-market storage businesses.

“NeoScale is harnessing the power of the channel, and Avnet’s leadership position in helping partners create complete storage solutions is key to our growth strategy,” said James Hanley, senior vice president, Worldwide Field Operations, NeoScale. “The combination of Avnet’s technical expertise, sales support and network of solution providers will help us advance our storage security offerings through a truly differentiated distribution model.”

NeoScale’s advanced technology provides enterprise-class data encryption and industry-leading global key management capabilities worldwide through its CryptoStor appliances, all of which help partners deliver enforced privacy for distributed applications while addressing the most stringent compliance requirements for their end customers.

As the leader in Global Key Management, NeoScale’s CryptoStor appliances support automatic sharing of encryption keys between data centers enabling data to be securely stored in multiple locations. NeoScale appliances also provide strong encryption, seamless backup compatibility, tape and virtual tape protection and secure distributed recovery. Designed for enterprise-level data protection needs, NeoScale’s CryptoStor appliances deliver centralized policy management, allowing users to define which data they want to encrypt via an easily managed Web-based portal, while consistently encrypting data at wire speed.

Avnet will distribute NeoScale’s full suite of storage security appliances including:

* NeoScale CryptoStor KeyVault, the industry’s first secure, automated and open enterprise-class appliance for data-at-rest encryption key management.
* NeoScale CryptoStor Tape, a readily deployable, high-speed tape security appliance that compresses, encrypts and cryptographically signs data as it goes to tape media or virtual tape, without disrupting backup processes.
* NeoScale CryptoStor Disk, the industry’s first enterprise-class storage security appliance providing true wire-speed encryption, centralized policy management and fabric transparent operation for media privacy.

"Customers are demanding the best security solutions to protect the privacy and integrity of their business and customer assets," said Steve Shaffer, president and CEO of Zunesis and a NeoScale VAR. "With NeoScale's advanced global key management system and strong policy-based encryption, and Avnet’s ability to effectively deliver complete solutions, our customers can be assured they are getting the industry's most flexible, scalable, cost-effective and secure storage."

About NeoScale Systems, Inc.

NeoScale Systems, Inc. is the trusted leader in storage security, enabling enterprise customers to achieve data privacy with the strongest security and lowest operational impact. The company's award-winning CryptoStor® appliances automate key management and encryption of data at rest on disk, virtual tape, or tape media. NeoScale appliances free customers from vendor lock-in through openness and interoperability. NeoScale solutions have been certified by leading storage vendors and have been deployed by more than 200 customers worldwide, including Global 500 companies, top financial institutions, healthcare organizations, government agencies, and a growing list of companies seeking to secure sensitive data. For more information, visit www.neoscale.com.

About Avnet Technology Solutions

Avnet Technology Solutions is an operating group of Avnet, Inc. (NYSE:AVT) representing US$5.1 billion in annual revenue for calendar year 2006, with locations in more than 30 countries. As a global technology sales and marketing organization, Avnet Technology Solutions has sales divisions focused on specific customer segments and a select line card strategy enabling an exceptional level of attention to the needs of its customers and suppliers. Visit www.ats.avnet.com/.

About Avnet

With more than 250 locations serving customers in 70 countries worldwide, Avnet markets, distributes and adds value to the products of the world’s leading electronic component suppliers, enterprise computer manufacturers and embedded subsystem providers. Additionally, Avnet brings a breadth and depth of service capabilities, such as supply-chain optimization, logistics solutions, product assembly, device programming, computer system integration and engineering design assistance. For the fiscal year ended July 1, 2006, Avnet generated revenue of $14.25 billion. Visit www.avnet.com/.