Merriman Capital Initiates Coverage on Crossroads Systems

SAN FRANCISCO, April 11, 2012 /PRNewswire/ -- Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR), initiated equity research coverage on Crossroads Systems, Inc. (NASDAQ: CRDS) ($5.84) last week with a Buy rating.

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Crossroads Systems is a storage technology company with a strong background in storage routing protocols and tape storage fundamentals, in particular. The Company's new StrongBox® interactive tape archive platform opens up a huge new market. StrongBox incorporates the Linear Tape File System (LTFS) developed by IBM and is compatible with Linear Tape-Open (LTO) Ultrium cartridge media for high-capacity and fast data access.

Research analyst, Joel Achramowicz, summarized in his initiation report:

Crossroads Systems revenues are expected to just about double by 2013 due to the recent launch of its exciting StrongBox® interactive tape archive platform, which is receiving significant interest in the market. We are initiating coverage of the Company's shares with a Buy rating and a $7.50 target price. Our target price is obtained by applying a 4.2-times multiple of the smoothed average of our projected FY2012 and FY2013 revenues. We expect the Company to be profitable in its 2013 fiscal year--and, perhaps sooner if StrongBox sales accelerate at a faster clip.

Members of the media can obtain a copy of this Merriman Capital research report by e-mailing [email protected].

About Merriman Capital, Inc.

Merriman Capital, Inc. is an investment banking firm providing equity and options execution services, market making, and differentiated research for high growth companies. The firm also provides capital raising, advisory, and M&A services. Merriman Capital, Inc. is a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR) and is the leading investment banking firm for OTCQX companies. For more information, please go to http://www.merrimanco.com/.

Merriman Capital, Inc. is a registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) http://www.finra.org/ and the Securities Investor Protection Corporation (SIPC) http://www.sipc.org.

Note to Investors

This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of the Company. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed on March 30, 2012. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. The Form 10-K filed on March 30, 2012, together with this press release and the financial information contained herein, are available on our website, www.merrimanco.com. Please click on "Investor Relations."

Important Disclosures

This research has been prepared by Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. Some companies Merriman Capital, Inc. follows are emerging growth companies whose securities typically involve a higher degree of risk and more volatility than the securities of more established companies.

The securities discussed in Merriman Capital, Inc.'s research reports may be unsuitable for some investors depending on their specific investment objectives, financial status, risk profile, or particular needs. Investors should consider this report as only a single factor in making their investment decisions and should not rely solely on this report in evaluating whether or not to buy or sell the securities of the subject company.

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All of the views expressed in this research report accurately reflect the research analyst's personal views about any and all of the subject securities or issuers. No part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the research analyst in the subject company of this research report. Research analysts are not directly compensated for specific revenue generated by the firm's investment banking transactions/activities.

General Disclosures

Merriman Capital, Inc. expects to receive or intends to seek compensation for investment banking services for all of the companies in its research universe in the next three months. Investors should assume that Merriman Capital, Inc. is soliciting or will solicit investment banking or other business relationships from the companies covered in this report in the next three months. Security prices in this report may either reflect the previous day's closing price or an intraday price, depending on the time of distribution. Designated trademarks and brands are the property of their respective owners.

Specific Disclosures

Key to investment Rankings (expected total share price return inclusive of dividend reinvestment, if applicable)

• Buy: Merriman Capital, Inc. expects the stock price to appreciate 10% or more over the next 12 months. Initiate or increase position.
• Neutral: Merriman Capital, Inc. believes the stock price is fairly valued at current levels. Maintain position or take no action.
• Sell: Merriman Capital, Inc. expects the stock price to depreciate over the next 12 months. Sell or decrease position.

This press release is for information purposes only and should not be regarded as an offer to sell or solicitation to buy the securities or other instruments of the company mentioned.

SOURCE Merriman Holdings, Inc.