BluePoint Data Storage Reports 33% Revenue Growth and 39% Increase in Gross Profit Margins

  BluePoint Data Storage, Inc. (TSX VENTURE: BLP) (PINK SHEETS: BLPDF), an established provider of managed server, electronic storage, systems availability, and data protection services, announced 33% growth in revenue from $1.5M in Q3 2007, to $2.0M for Q3 2008 (fiscal quarter ending September 30th). In addition, the Company reports a 39% increase in gross profit dollars from $651K in Q3 2007, to $901K for Q3 2008. All amounts are reported in U.S. Dollars.

Net loss of $84K for Q3 2008 (versus $293K loss for Q3 2007) included non-cash amortization expense of $134K related to the acquisition of Champion Managed Services, Inc. that was acquired on the November, 3 2006, and $150K in non-cash depreciation expense (Q3 2008) on the Company's long-term computer equipment and other fixed assets ($225K for Q1 2007). Therefore, earnings before interest, taxes, depreciation and amortization (or, "EBITDA") was a positive $205K ($124K in Q3 2007).

Commenting on the results, Paul Sachse, President and CEO said "our top-line growth was strong with significant improvements in gross profit margin contribution. Depreciation expense went down as a result of older equipment being fully-depreciated and replaced periodically with more productive, less costly technology. Our proprietary Unite(TM) and Osmosis(TM) Technologies are also beginning to make gross profit margin contributions. As we improve these platforms we expect margin contributions to grow".

About BluePoint Data Storage

BluePoint delivers managed server, electronic storage, data protection, systems availability and recovery solutions that ensure the protection and availability of corporate data and information technology while reducing the total cost of ownership. BluePoint manages these systems with unparalleled storage and networking expertise, guarantees high performance and availability, and ensures solutions are on par with the current state-of-the-art. There are currently 44,423,406 BLP common shares outstanding as of the date of this release.

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 Company's ability to attract and retain key employees.

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Contacts: BluePoint Data Storage, Inc. Paul Sachse CEO and President [phone] Email: [e-mail]