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Crossroads Systems Reports Fiscal Fourth Quarter and Fiscal 2009 Full Year Financial Results

Wednesday, December 16, 2009 - Austin, TX.

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Austin, Texas – December 16, 2009 – Crossroads Systems, Inc. (symbol: CRDS), a global leading provider of solutions to connect, protect, secure and restore data, today announced results for its fiscal fourth quarter (Q4'09) and fiscal year ended October 31, 2009.

Fiscal Fourth Quarter 2009
Revenue totaled $6.0 million for Q4'09 compared to $3.9 million in the fiscal third quarter ended July 31, 2009 (Q3'09). Product revenue totaled $1.9 million for Q4'09 as compared to $1.3 million for Q3'09. In addition, revenue from IP licenses, royalty and other totaled $4.1 million for Q4'09 as compared to $2.6 million for Q3'09.

Gross profit was $5.2 million, or 86 percent for Q4'09, compared to $3.3 million, or 85 percent for Q3'09. Net income for Q4'09 was $775 thousand, or $0.03 cents gain per share, compared to a net loss of $1.1 million, or $0.04 cents loss per share in Q3'09.

Cash decreased from $5.6 million in Q3'09 to $5.3 million in Q4'09. This decrease was attributable to the timing of payments from intellectual property.

Fiscal Year 2009
Total revenue for fiscal year 2009 (FY'09) was $16.8 million, compared with $21.9 million for fiscal year 2008 (FY'08). Gross profit for FY'09 was $14.2 million, or 84 percent, compared with $18.3 million, or 84 percent, for FY'08. Net loss for FY'09 was $4.4 million, or $0.15 cents per share, compared to a net loss of $7.5 million, or $0.27 cents per share, for FY'08.

To learn more about Crossroads' financial information, visit: www.crossroads.com/InvestorRelations/.

About Crossroads Systems, Inc.
Headquartered in Austin, Texas, Crossroads Systems is a global leading provider of solutions to connect, protect, secure and restore data. Crossroads (symbol: CRDS) trades over-the-counter on Pink Sheets and posts its financial disclosure reports, press releases and other related documentation on the OTCIQ Web service of the Pink Sheets Web site. Visit www.crossroads.com.

Forward-Looking Statements
This release may include forward-looking statements. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Crossroads are intended to identify such forward-looking statements. These statements reflect the current views and assumptions of Crossroads and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

©2009 Crossroads Systems, Inc. Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.