A 100 Percent Growth For BluePoint Data Storage in 2004

BluePoint Data Storage, Inc. (PINK SHEETS:BLPDF) (TSX VENTURE:BLP), an established provider of managed storage, availability and data protection services, reaffirms guidance of exceeding $1 million (US) in annual revenue for the year ended December 31, 2004 and announces the issuance of 1.9 million incentive stock options to Management.

BluePoint Data Storage, Inc. reported 2004 annual revenue of US$1.070 million with 40% gross profit margins. This is the third consecutive year that the company has doubled its subscription-based, recurring revenue while margins have continued to improve as delivery costs are spread over more and more customers. Based on current monthly billings, BluePoint has begun Q1 2005 with a "run rate" of US$1.6 million in annualized revenue and an average customer billing of over $2,600 per month. The above is subject to the 2004 annual audit by Price Waterhouse Coopers.

Recurring revenue for 2004 was derived from customers ranging from small businesses to Fortune Global 100 organizations. Several customers are Data Centers or ASPs and through them the company serves many more end user customers. A significant new customer closed in Q4 is being implemented on schedule. Channel Partners (including IBM Global Services and eDeltaCom) brought in 55% or new revenue while the Internet and direct sales efforts accounted for 45%. The continued growth of the partner channel is critical to rapidly expanding sales opportunities.

The Company also announced cumulative 2004 incentive stock option grants to Officers and Directors totaling 1.9 million. Of these, 1.1 million options were granted by the Board of Directors on February 9, 2004 at strike price of CAD$0.15. The remaining 0.8 million were granted by the Board on December 15, 2004 at a strike price of CAD$0.10. These options expire five years from their respective grant dates.

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