BluePoint Data Storage, Inc.
Pink Sheets : BLPDF
TSX VENTURE : BLP

BluePoint Data Storage, Inc.

August 23, 2005 16:47 ET

BluePoint Data Storage Announces Management Led Financing and Second Quarter 2005 Financial Results

BOCA RATON, Fla.--(CCNMatthews - Aug 23, 2005) -

BluePoint Data Storage, Inc. (Pink Sheets:BLPDF) (TSX VENTURE:BLP), an established provider of managed storage, availability and data protection services, today announced a private placement led by the management team. The financing is to provide additional working capital.

The private placement offering is for 2,000,000 common shares at a price of CAD$0.20 per share, for total gross proceeds of up to CAD$400,000. The placement will close in multiple tranches and is expected to complete by September 30, 2005. If the placement is fully subscribed, the company will have 21,711,704 (23,202,872 fully diluted) shares outstanding after completion. Private placement shares will be restricted from sale for four months from the issuance date. A 7% fee will be payable on CAD$100,000 of this placement. No other commissions or fees are payable on this transaction.

The financing is to provide additional working capital to support accelerated sales and marketing efforts and to purchase capital assets required to support new customers.

BluePoint has enjoyed two profitable quarters and strong year over year revenue growth. Revenue for the second quarter ended June 30, 2005 increased 87% over the same period in 2004.

Second Quarter 2005 Financial Results

The Company reports revenue of US$464,000 for the quarter ended June 30, 2005, an increase of 87% over the US$248,000 reported in the second quarter of 2004. The Company further reported positive net income of US$19,000, compared to a net loss of US$296,000 for the same period in 2004. Operating income before interest and depreciation was US$129,000 versus an operating loss of US$4,000 in the same period in 2004. These results are subject to the Company's 2005 annual audit and have not been reviewed by its auditors, PriceWaterhouseCoopers, LLC.

About BluePoint Data Storage

BluePoint delivers managed data protection, availability and recovery solutions that ensure the protection and availability of corporate data and information technology systems while reducing the total cost of ownership. BluePoint manages these systems with unparalleled storage and networking expertise, guarantees high performance and availability, and ensures systems are on par with the current state-of-the-art. Services are supported through a 24/7 service and monitoring center.

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 BluePoint 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, timing of product introductions, competition and the ability of BluePoint to attract and retain key employees.

As of the date of this release, BluePoint has 19,711,704 common shares issued and outstanding, and 21,202,871 fully-diluted.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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