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

BluePoint Data Storage, Inc.

November 03, 2006 17:17 ET

BluePoint Data Storage Completes Acquisition of Champion Managed Services, Inc. for $16.4M

BOCA RATON, FLORIDA--(CCNMatthews - Nov. 3, 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 the closing of its acquisition of Champion Managed Services, Inc. ("CMS") as previously announced on June 30, 2006 and conditionally accepted by the TSX Venture Exchange as announced on October 10, 2006. There were no changes to the terms of the acquisition as previously disclosed.

The Company obtained shareholder approval via a written consent of a majority of disinterested BLP shareholders on October 12, 2006. A disinterested shareholder is a person or entity which is at arm's-length to CMS, the target company. A filing statement dated October 10, 2006 providing information concerning the transaction has been filed on SEDAR and is available at www.sedar.com.

The purchase price for CMS was $16.4M and was satisfied by the issuance 22,211,702 BLP common shares from the Company's treasury. Upon closing of the transaction, there are 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 co-market the new and existing "BluePoint" branded services and has agreed not to compete domestically or internationally with BLP for a period of five years from the date of closing.

About BluePoint Data Storage, Inc.

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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