FORMATION, INC. ANNOUNCES 60% STORAGE CAPACITY
INCREASE FOR TOUGHDISK® 3500-ATA RUGGED HARD DISK

Increased Capacity Provides Industry’s Highest Capacity, Low-cost Alternative to
Solid State Rugged Data Storage in a Standard 3.5" Form Factor

ToughDisk in Use by All Branches of the United States Military

MOORESTOWN, NEW JERSEY, USA, (December 13, 2006 )…Formation, Inc. announced today a 60% increase in storage capacity for its ToughDisk® 3500-ATA Rugged Hard Disk, providing the industry’s highest capacity, low-cost alternative to solid-state rugged data storage in a 3.5” form factor. The units now offer 160GBs of storage capacity, up from 100GBs. ToughDisk is being used by all branches of the United States military and many commercial organizations for rugged data storage in extreme environments.

ToughDisk rugged hard disks are high-performance, removable data storage units built specifically to withstand extreme temperature, shock, vibration, humidity and dust conditions. A standard ATA interface allows drop-in COTS replacement of conventional 3.5” low profile drives with a storage capacity of 160GB. ToughDisk performs reliably in environments that would destroy conventional hard disks, at a fraction of the cost of solid-state storage.

“ToughDisk provides much greater storage density than solid-state at less than 10% of the cost per gigabyte,” said Gene Lovely, Director Business Development, Formation, Inc. “Conventional disk drives are typically the ‘weakest link’ preventing COTS-based computer systems from reliably operating in extended altitude, humidity, temperature or vibration/shock environments. ToughDisk bridges the gap between conventional hard disks and expensive solid-state solutions, providing much of solid-state’s performance in a conventional 3.5” disk form factor.”

Formation’s ToughDisk technology addresses the ever-growing demand for data storage capacity and performance in harsh environments. Formation has delivered thousands of rugged disk systems, high-performance RAID systems, and avionics-class servers. The servers are being used for mission-critical applications including streaming multimedia (e.g., reconnaissance data), aircraft health information and sensitive financial data. ToughDisk combines Formation’s latest patent-pending developments with over a decade of leading-edge disk application innovation.

ToughDisk 3500-ATA Rugged Hard Disk is listed on the GSA Advantage! online shopping and ordering system for federal government employees. For information visit www.gsa.gov/advantage.

About Formation, Inc.

Formation, Inc. of Moorestown, NJ, USA designs and manufactures hardware and software products and provides related engineering services for the defense, aviation, data communications and transportation industries. Products include ToughDisk Rugged Hard Disks, Advanced Integrated Recorders, avionics-class servers, rugged wired and wireless networks and the Mobile Vehicle Tracker. For information visit www.formation.com or call +1 856.234.5020.

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Company Contact: Gene Lovely +1 (856) 380-2926 genel@formation.com