BluePoint Data Storage, Inc.
Pink Sheets : BLPDF

BluePoint Data Storage, Inc.

October 10, 2006 18:01 ET

Bluepoint Data Announces TSX Venture Exchange Conditional Approval of Proposed CMS Acquisition

BOCA RATON, FLORIDA--(CCNMatthews - Oct. 10, 2006) - BluePoint Data Storage, Inc. ("BLP" or the "Company")(TSX VENTURE:BLP)(PINK SHEETS:BLPDF), an established provider of managed storage, availability and data protection services, announces receiving Conditional Approval from the TSX Venture Exchange to complete its proposed acquisition of Champion Managed Services, Inc. ("CMS") as was previously announced on June 30, 2006.

The Company is seeking shareholder approval via a written consent of a majority of disinterested BLP shareholders. A disinterested shareholder is defined as a person or entity which is at arm's-length to CMS, the target company. Therefore, any BLP shareholder who is associated with CMS will abstain from voting on the proposed acquisition. A filing statement providing information concerning the transaction has been filed on SEDAR and is available publicly for all BLP shareholders at

Final Approval from the TSX Venture Exchange is anticipated by the Company on or by October 20, 2006, but is subject to written majority shareholder approval and a value escrow agreement being entered into covering 20,757,467 new BLP common shares, among other things. The total proposed issuance from the Company's treasury is 22, 211,702 new BLP common shares. Upon closing of the transaction, there will be 44,423,406 BLP common shares outstanding, 45,408,406 on a fully-diluted basis.

About Champion Managed Services, Inc.

Champion Managed Services, Inc. provides remote server management primarily for IBM Global Services customers located in Atlanta, GA; Charlotte, NC; Chicago, IL; and Boulder, CO. CMS has been providing these services for approximately two years and is a sister company of Champion Solutions Group, Inc. ("CSG"), which has been a business partner of BLP for over five years. CSG will continue to co-market the new and existing "BluePoint" branded services and has agreed not to compete with BLP for a period of five years from the date of closing.

About BluePoint Data Storage

BLP delivers managed data protection, system availability and recovery solutions that ensure the protection and availability of corporate data and information technology systems, while reducing the total cost of ownership. BLP manages these systems with unparalleled expertise, guarantees high performance and availability and ensures systems are on par with the current state-of-the-art.

Safe Harbor

This release may contain forward-looking statements that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, demographic changes, regulation, major technology changes, the timing of product introductions, competition and the ability of the Company to attract and retain key employees.

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