Matthew Galinko

Ellen Litvik

Adam Waldo

- **Data Storage Corporation (DTST)** completed the sale of its CloudFirst business on **September 11, 2025**, following shareholder approval on **September 10, 2025**.  **[1419951_0001731122-25-001268_e6842_ex99-1.htm:0]** **[1419951_0001731122-25-001268_e6842_8-k.htm:4]** 
- The transaction generated approximately **$40 million in gross proceeds** and an estimated **$24 million in net proceeds** after fees, taxes, and adjustments.  **[1419951_0001731122-25-001268_e6842_ex99-1.htm:0]** 
- The company plans to utilize these proceeds for strategic investments and targeted acquisitions in digital infrastructure, focusing on **AI-enabled software, GPU technologies, and cybersecurity**.  **[1419951_0001731122-25-001268_e6842_ex99-1.htm:0]** 
- DTST will continue to operate its telecommunications subsidiary, Nexxis, Inc., which generated **$1.1 million in sales** for the fiscal year ended December 31, 2024.  **[1419951_0001731122-25-001268_e6842_ex99-1.htm:0]** **[1419951_0001731122-25-001268_e6842_8-k.htm:1]**

Data Storage Corporation Completes Sale of CloudFirst Business

- Data Storage Corporation (DTST) completed the sale of its CloudFirst business on **September 11, 2025**.  **[1419951_2f09d7fc7d59468a89beb33d504a3848_0]** 
- The transaction generated approximately **$40 million in gross proceeds** and an estimated **$24 million in net proceeds** after fees, taxes, and adjustments.  **[1419951_2f09d7fc7d59468a89beb33d504a3848_0]** 
- The company plans to use the proceeds to fund targeted acquisitions and investments in digital infrastructure, specifically **AI-enabled software, GPU technologies, and cybersecurity**.  **[1419951_2f09d7fc7d59468a89beb33d504a3848_0]** **[1419951_2f09d7fc7d59468a89beb33d504a3848_1]** 
- DTST will continue to operate its telecommunications subsidiary, **Nexxis, Inc.**, and aims to build recurring revenue streams through its investments.  **[1419951_2f09d7fc7d59468a89beb33d504a3848_0]** **[1419951_2f09d7fc7d59468a89beb33d504a3848_1]**

Data Storage Corporation Completes CloudFirst Business Sale

- Data Storage Corporation is providing **supplemental disclosures** to its definitive proxy statement regarding the proposed **divestiture of its cloud solutions business**, which represents the sale of substantially all of the Company's assets.  **[1419951_0001731122-25-001185_e6813_8k.htm:1]** 
- The Company is making these disclosures voluntarily in response to letters from purported shareholders seeking additional financial information related to the divestiture proposal.  **[1419951_0001731122-25-001185_e6813_8k.htm:1]** 
- The divestiture proposal will be voted on by stockholders at the annual meeting scheduled for **September 10, 2025**.  **[1419951_0001731122-25-001185_e6813_8k.htm:1]** 
- Financial advisor Cassel Salpeter & Co., LLC's analysis indicated an implied aggregate value reference range for the business of **$34,700,000 to $40,800,000** based on selected companies analysis, and **$36,500,000 to $42,600,000** based on selected transactions analysis, both compared to a Base Purchase Price of **$40,000,000**.  **[1419951_0001731122-25-001185_e6813_8k.htm:2]** **[1419951_0001731122-25-001185_e6813_8k.htm:3]**

Data Storage (DTST)