SAND One of First to Deliver Nearline Access to Customers Using Latest Version of SAP NetWeaver Business Intelligence

MONTREAL, Jan. 3, 2007 – SAND Technology, Inc., (OTCBB: SNDTF.OB), an international provider of intelligent enterprise information management solutions, today announced that its SAND/DNA™ version 2.3 software has achieved “Certified for SAP NetWeaver®” status for its integration with Near Line Storage for SAP NetWeaver Business Intelligence (SAP NetWeaver BI) Release 2004s ( NW-BI-NLS 04s). SAND/DNA is one of the first applications to achieve integration with SAP NW-BI-NLS 04s .

SAND/DNA’s advanced information management technology complements SAP’s industry-leading information lifecycle management (ILM) architecture and is able to manage as a fully integrated extension within SAP NetWeaver BI 2004s any volumes of less frequently used data, providing rapid access to and highly efficient storage to decrease total cost of ownership (TCO).

Enterprise customers in industries such as healthcare, government, financial services, retail and global transportation can cost-effectively retain massive amounts of highly compressed data in a nearline repository for extended periods.

“An SAP NetWeaver BI archive based on SAND/DNA can be maintained and used more like an online database than an offline archive due to SAND’s data compression and schema management capabilities,” said Joshua Greenbaum, principal of Enterprise Applications Consulting (EAC). “The ability to use the same query tools, using online disk storage instead of mounting tapes, means the SAP NetWeaver BI user’s experience of SAND/DNA – and therefore the quality of the overall analysis – can be expected to be significantly greater than those offered by the standard archiving systems in use today.”

SAND/DNA provides three key features in support of SAP NetWeaver BI, offering customers the following:

• Superior data compression: SAND/DNA typically delivers compression ratios of about 90 percent
• Low-cost maintenance: SAND/DNA requires significantly fewer data administration resources than standard archiving systems
• Linear scalability: Recent SAND benchmarks with Sun shows linear scalability with little or no loss in throughput.

This certification confirms the existence of product functionality in accordance with SAP’s certification procedures and included the following functionality tests:

• Connecting SAND/DNA to SAP NetWeaver BI 2004s
• Creating data archiving process for a given InfoProvider
• Initialization run: start and monitor the data archiving process
• Delta run: schedule and monitor the data archiving process
• Load NLS partitions into InfoCube
• Restore NLS partition into DataStore Object

“We are especially pleased to have achieved Certified for SAP NetWeaver status as one of the first SAP partners to have a solution certified for SAP NW-BI-NLS 04s, as it marks a deepening of our partnership,” said Linda Arens, vice president of marketing and global alliances. “It reaffirms our successful compliance with the SAP NetWeaver platform to help reduce total cost of ownership for customers, as well as help them more efficiently manage their rapidly growing data warehouses with our nearline solution now Certified for SAP NetWeaver.”

The SAP NetWeaver platform powers the mySAP™ Business Suite family of applications, SAP xApps™ packaged composite applications, and partner solutions such as SAND/DNA 2.3 from SAND Technology. SAP NetWeaver unifies integration technologies into a single platform and is pre-integrated with business applications, enabling change and reducing the need for custom integration.