News Release

SAN DIEGO, Calif.--(BUSINESS WIRE)--Nov. 27, 2000--Overland Data Inc. (Nasdaq:OVRL), a technology leader in data storage and backup products, today announced that it will support Sony Electronics' recently announced value-line AIT-1(1) (SDX-400C) tape drives in its AIT LibraryPro(TM), the only modularly scalable AIT library on the market today.

The LibraryPro with Sony value-line AIT-1 drives boasts a per-module capacity of 20 AIT cartridges and can be scaled up to nine modules for a maximum configuration of 6.3 TB native capacity (up to

• 16.4 TB with compression) and throughput of 259 GB/hr (up to 674 GB/hr with compression).

The new SDX-400C drives offer a capacity of 35GB (91GB compressed) per cartridge, and higher performance with a data transfer rate of 4MB/sec (10.4MB/sec compressed) than the previous AIT-1 drives, at a significantly lower price point.

"Overland is taking advantage of this value opportunity with affordable AIT-1 just as we have done with the remarkable success of the DLT1-based LoaderXpress(TM)," said Overland vice president of marketing, Steve Richardson. "The AIT-1 LibraryPro opens up the proven power and reliability of the AIT format to a new class of users who previously may have been limited to a DDS or comparably priced product.

"This is an extremely attractive alternative to other entry-level automated storage solutions that lack the robustness of AIT and the scalability of Overland's modular architecture."

"The new value-line AIT-1 allows vendors like Overland to continue to develop products for the low-end tape automation market, without compromising quality or reliability," said John Woelbern, senior marketing manager of tape streamer products for Sony Electronics' Component Co. "For price-sensitive customers who need a demonstrated, scalable tape technology, the LibraryPro integrating the SDX-400C series is an extremely cost-effective choice."

Overland's LibraryPro combines the company's ultra-reliable Mainframe Class Robotics technology with the inherent advantages of Sony's AIT technology, which offers the highest data transfer rate, cartridge capacity, longest head life and fastest time to data of all mid-range backup systems in their price class.

LibraryPro allows customers to scale the capacity and performance in increments for a customized solution to precisely match their specific storage needs, not locking them into restrictive monolithic library designs that dictate fixed drive and cartridge slot configurations.

The innovative robotics technology of the LibraryPro is based on the company's highly reliable DLT(1) LibraryXpress(TM) design, which provides modular plug-and-play scalability, and which has won more than 25 editorial awards worldwide, unmatched by any other automated data storage product.

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

The LibraryPro with new value line AIT-1 tape drives will be available in early 2001.

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.

Note 1: Advanced Intelligent Tape and AIT are trademarks of Sony Electronics.

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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