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iSCSI Storage - IP Newtork Storage Trends

Overland Storage Named Industry Leader in iSCSI Disk-to-Disk Storage

REO 4000 Price/Performance Ratio 'Hard To Beat'

    SAN DIEGO, Aug. 11 /PRNewswire-FirstCall/ -- Overland Storage Inc.
(Nasdaq: OVRL), the leading provider of backup and recovery solutions, has
shipped more units and terabytes of iSCSI-based Disk-to-Disk (D2D) backup this
year than any other vendor in the industry, according to a viewpoint released
by Enterprise Strategy Group (ESG).  The report, which highlights the success
of the REO 4000 high-performance disk-based backup and recovery appliance,
states that Overland Storage has "smartly combined D2D backup, iSCSI and S-ATA
drives within an appliance that has a price/performance ratio that is hard to
beat."
    "Overland has demonstrated its leadership in D2D backup with REO 4000,
which delivers an excellent price/performance solution to customers," said
Tony Asaro, senior analyst, the Enterprise Strategy Group.  "ESG believes that
the combination of iSCSI and D2D backup is a killer application, and Overland
has emerged as the leader in iSCSI disk-based storage."
    ESG research also found in a recent study that 66 percent of IT
professionals state that their backups take too long.  REO 4000 is a high
performance disk-based appliance that delivers accelerated backups and
immediate data restores.  ESG believes that this class of appliances has the
"potential for wide market adoption starting in 2004 and for years to come."
    REO 4000 is a preconfigured, easy-to-install appliance with specialized
intelligent software, hardware, and both iSCSI and Fibre Channel connectivity.
It supports optional RAID capabilities for organizations seeking an extra
level of data protection.  Capable of operating as either disk or virtual
tape, REO 4000 enhances existing backup and recovery processes by improving
performance and lowering the total cost of ownership for data protection.
    "As ESG has confirmed, more organizations are choosing the
high-performance REO for disk-based backup and recovery than any other
comparable product on the market," said Christopher Calisi, president and CEO,
Overland Storage.  "The REO is a key component of our strategy to deliver
powerful data protection solutions that ensure business continuity, and we are
gratified by this acknowledgment of its success."
    The complete ESG Viewpoint, "Overland -- the Leader in iSCSI-based
Disk-to-Disk Backup," is online at:
http://www.enterprisestrategygroup.com/ESGPublications/ReportDetail.asp?Report
ID=217

    Overland products are available exclusively through the company's channel
partners.  For more information, please visit http://www.overlandstorage.com.

    About Overland Storage
    For more than 20 years, Overland Storage has delivered world-class data
protection solutions designed to ensure business continuity.  Focused on
backup and recovery, Overland's data protection solutions are designed for
entry-level and midrange computing environments.  These include the REO family
of disk-based backup and recovery appliances and the award-winning NEO series
of tape libraries.  Overland sells its products worldwide through leading
OEMs, commercial distributors, storage integrators and value-added resellers.
For more information, visit Overland's website at http://www.overlandstorage.com.

    Except for the factual statements made herein, the information contained
in this news release consists of forward-looking statements that involve
risks, uncertainties and assumptions that are difficult to predict.  Words and
expressions reflecting optimism and satisfaction with current prospects, as
well as words such as "believe," "intends," "expects," "plans," "anticipates"
and variations thereof, identify forward-looking statements, but their absence
does not mean that a statement is not forward looking.  Such forward-looking
statements are not guarantees of performance and the company's actual results
could differ materially from those contained in such statements.  Factors that
could cause or contribute to such differences include difficulty of predicting
sales to the company's major OEM customer, technology spending levels,
unexpected shortages of critical components, rescheduling or cancellation of
customer orders, loss of a major customer, the timing and market acceptance of
new product introductions by the company, including the launch of the
company's new REO products, its competitors or its licensees, the timing and
amount of licensing royalties, general competition and price pressures in the
marketplace, the company's ability to control costs and expenses and economic
conditions.  Reference is also made to other factors set forth in the
company's filings with the Securities and Exchange Commission, including the
"Risk Factors," "Management's Discussion and Analysis" and other sections of
the company's Form 10-K for the most recently completed fiscal year.  These
forward-looking statements speak only as of the date of this release and the
company undertakes no obligation to publicly update any forward-looking
statements to reflect new information, events or circumstances after the date
of this release.

    All trademarks, trade names, service marks, and logos referenced herein
belong to their respective companies.