News Release

SAN DIEGO--(BUSINESS WIRE)--Jan. 10, 2001--Overland Data Inc. (Nasdaq:OVRL), a technology leader in automated tape backup products, today became the first tape library manufacturer to have shipped Super DLTtape(TM) technology units to their customers.

Digital Tape Solutions, a distributor based in Australia, is the first revenue customer to take advantage of Overland's award-winning SuperDLT LoaderXpress(R). The SuperDLT LoaderXpress is the first of an entirely new generation of automated storage solutions built around Super DLTtape technology, and which were slated to be delivered to the national and international markets starting in the first quarter of 2001.

"The capacity and performance of Super DLTtape technology and the reliability of the DLT platform enables us to extend our leadership in the mid-range and enterprise markets, as well as help ensure the success of the next generation DLTtape automated storage solutions," said Steve Richardson, vice president of marketing at Overland. "Overland's customers will be better equipped to meet the growing data storage needs with a high-value, scalable storage automation solution."

"Overland's new SuperDLT LoaderXpress meets my customers' data storage needs with an extremely attractive and affordable desktop automated solution for workgroup, departmental and small enterprise environments with more than double the capacity and performance previously available," said David Davoren, general manager of Digital Tape Solutions. "The explosive growth in data over the next few years makes it imperative that organizations have the best solutions available, and the new SuperDLT LoaderXpress delivers capacity and transfer rates appropriate for mid-range and enterprise business needs."

"Overland's commitment to Super DLTtape technology helps ensure that customers in a variety of business environments have access to the most comprehensive data storage solutions available," stated William Boles, vice president, marketing, Quantum DLTtape Group. "Overland's dedication to consistently delivering reliability and performance to their customers is evidenced through their shipment of Super DLTtape products."

Overland's SuperDLT LoaderXpress has a native capacity of up to 110 gigabytes per cartridge, and a data rate performance of up to 11 MB (22MB/sec with compression). This powerful new product provides 1.1 TB of capacity in an automated Super DLTtape solution that makes loading single tapes a thing of the past.

The boost in capacity provided by Super DLTtape technology to the LoaderXpress enables network servers to be backed up for more than two months without any operator intervention. Despite its entry-level price, the SuperDLT LoaderXpress delivers a convenient cartridge magazine design that simplifies media loading and storage, and the field-proven reliability of Overland's mainframe-class robotics technology that is equally suitable for an enterprise-level application.

The impressive performance and capacity of the new Overland SuperDLT LoaderXpress reflects a combination of Quantum's innovative Super DLTtape technology and Overland's industry-leading expertise in tape automation products. As Overland enhances its existing products with Super DLTtape drives, it will also implement an upgrade program for current Overland DLT customers.

Overland DLTtape products are backed by the company's innovative Guaranteed Up Time Service (GUTS(TM)) warranty program guaranteeing 99% uptime performance and 100% data recovery, the only guarantee of its kind in the industry.

About Quantum

Founded in 1980, Quantum Corporation (www.quantum.com) is the world's leading storage supplier in six of the seven markets it serves: desktop hard disk drives, tape drives, network attached storage (NAS) appliances, solid state systems and hard disk drives for the emerging personal video recorder (PVR) market, and DLTtape(TM) automation systems. Quantum is also the leading supplier of high-end hard disk drives. In 1999 Quantum became the first Silicon Valley company to issue tracking stock, replacing its existing common stock with the ticker symbols DSS and HDD, which track the separate performance of the company's DLT and Storage Systems and Hard Disk Drive businesses. Both stocks are traded on the New York Stock Exchange. Selling its products through OEM and distribution channels worldwide, sales for the fiscal year ending March 2000 were $1.4 billion for Quantum's DLT and Storage Systems Group and $3.3 billion for Quantum's Hard Disk Drive Group. Quantum Corp., 500 McCarthy Blvd., Milpitas, CA 95035, 408/894-4000, www.quantum.com.

About Overland

Overland Data Inc. (Nasdaq:OVRL) is a global supplier of innovative data storage and storage automation solutions for computer networks. The Company's award-winning DLT LibraryXpress(TM) SmartScale Storage(R) architecture has set the standard for intelligent automated storage and scalability and established Overland as a leader in the mid-range tape storage market. Today, Overland is broadening its product line and technology offerings to address additional segments of the storage market, including the entry-level small-business market, as well as the higher-end enterprise environment. Overland's patented Variable Rate Randomizer (VR2(TM)) data encoding technology, capable of substantially increasing the capacity and throughput of linear tape formats, is being applied by the Company to its entry-level tape drive offerings. It has also been licensed to Imation Corp., Seagate Technology, StorageTek and Tandberg Data. Overland products, acclaimed for their quality and reliability, are sold worldwide through leading OEMs, including Compaq, Fujitsu Siemens Computers, Groupe Bull, IBM and NCR commercial distributors such as Bell Microproducts, Ingram Micro and Tech Data Corp., as well as storage integrators and value-added resellers.

• DLTtape is a registered trademark of Quantum Corp. worldwide

Except for the factual statements made herein, the information contained in this press 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 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 and its competitors, general competition and price pressures in the marketplace, and the Company's ability to control costs and expenses. 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.

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