News Release

The R2000 is part of a family of backup and recovery acceleration appliances. The Overland Storage REO SERIES includes the R2000, the RA2000 recovery acceleration appliance, and the RX2000 recovery expansion appliance.

"Overland recognizes that IT managers need to reduce backup windows to become more effective and save their companies time, money and valuable network resources. The first product in our new REO SERIES family, the R2000, reduces the time to back up data by up to 80 percent or higher in some of our customers' environments," said Christopher Calisi, president and CEO of Overland Storage. Calisi also said that based on customer feedback, tape backup is still very vital to their storage requirements. To fulfill that need, the REO SERIES products include proprietary technology that stores and moves data securely from disk-to-disk-to-tape (D2D2T(TM)) unlike any disk backup product on the market today, he said.

The REO SERIES introduces backup and recovery accelerator appliances that minimize complexity, cost and deployment headaches while simultaneously reducing backup and recovery time. The REO SERIES utilizes a customer's existing Ethernet infrastructure as the backup connection, avoiding the costly and complicated installation of a dedicated Fibre Channel network, while allowing the customer to quickly back up data across the data center or across the city. Compatibility with all major backup software packages ensures that the REO SERIES will integrate into existing backup architectures without requiring the replacement of existing software.

"We're impressed with the speed and performance of the REO R2000, and the potential measurable value we will receive by using the appliance," said Jim OBrien, systems administrator for Hunter Engineering, a world leader in automotive service equipment. "As a supplier of automobile service equipment to some of the best known names in the industry such as Ford and GM, we have to make sure all our data is safely secured. We're confident that when a need arises to recover the archived data, the R2000 will allow us to do so quickly and easily so we can get back to servicing our customers without losing any productivity."

A backup accelerator that scales in both performance and capacity, the REO SERIES delivers high-performance through the use of iSCSI and Serial ATA drives. The REO SERIES enables the physical separation of data copies through the use of Ethernet, thus improving security and business continuance. The REO SERIES also is well suited for consolidating backup data from remote facilities into a single location. Recovery using data stored on the appliance is faster because IT administrators have immediate access to backup data in high-speed disk as well as tape. Once primary data is backed up to the REO SERIES, the appliance can export it to tape as an archive copy using a customer's existing backup software, preserving the data in the safest, most reliable backup environment. With the REO SERIES, iSCSI delivers that same high-speed performance as one Gigabit Fibre Channel without the cost and complexity.

"With Overland's proven expertise in tape backup, the REO SERIES is the next logical step for recovery and data backup. No other backup solution combines high-performance iSCSI data transfer, secondary backup to tape and compatibility with virtually all backup software," said John Matze, vice president and CTO of Overland Storage, and co-author of the iSCSI standard specification. "Starting with its two terabyte Serial ATA disk capacity and reasonable price point, the REO SERIES improves data protection for our end user customers while filling a void in our resellers' backup solution portfolios."

"Overland's recent acquisition of Okapi Software has provided another layer of data protection to Overland's already comprehensive storage solutions," said Nancy Marrone-Hurley, senior analyst for Enterprise Storage Group. "This new accelerator appliance, combined with Overland's award- winning storage technology, provides a full solution that helps accelerate the backup and recovery process while reducing overall costs. Overland's channels now have the opportunity to sell a high-performance, next-generation backup solution to a wide range of customers."

Pricing and Availability

The Overland Storage REO SERIES R2000 is now available for a suggested retail price of $24,995 for 2 TB of Serial ATA RAID storage. The R2000 is fully interoperable with the recently-released Microsoft iSCSI drivers for Windows platforms.

Overland's RA2000 and RX2000 products will be available in September.

Overland Storage products are available through leading storage partners worldwide. To find the one nearest you, or for more information on Overland's REO SERIES, please call 1-800-729-8725 or visit www.overlandstorage.com .

About Overland Storage

Overland Storage, Inc. (Nasdaq: OVRL - News) is a leading global supplier of innovative hardware and software storage solutions for mid-range computer networks. The Company delivers high availability products, including award- winning automated storage libraries that set the standard for intelligent, automated and scalable storage. Overland sells its products worldwide through leading OEMs, commercial distributors, storage integrators and value-added resellers. For more information, visit Overland's Web site at www.overlandstorage.com .

     Fact Sheet

     REO SERIES(TM)
     Family of Backup and Recovery Acceleration Appliances

     WHAT:
     R2000  - Backup Acceleration Appliance - available now
     RA2000 - Recovery Acceleration Appliance - available September
     RX2000 - Recovery Expansion Appliance - available September

Overland's REO SERIES introduces backup and recovery appliances that minimize complexity, cost and deployment headaches while simultaneously reducing backup and recovery time.

    KEY BENEFITS:

    Backup and recover data in the fastest possible timeframe
     *  Overland's approach reduces backup times and keeps important data
        available to recover at disk speeds.
     *  The disk-to-tape innovation speeds secondary backup to tape.
     *  Using Overland's proprietary technology, users can back up multiple
        servers in parallel, up to eight at a time, and automatically protect
        and move data to and from remote sites.
     *  The REO SERIES can backup as many as eight application servers
        simultaneously.
     *  As a backup and restore device, the REO SERIES delivers 100 MB/sec
        aggregate bandwidth.

    Protect and store data in different physical locations across multiple
sites on both disk and tape
     *  The REO SERIES appliance exploits the latest iSCSI and Serial ATA
        technology.
     *  The REO SERIES improves data recovery to reduce vulnerability to
        serious outages.
     *  The REO SERIES can reside across the computer room or across the
        country for effective disaster recovery.

    Work reliably with currently installed backup solutions, skills and
processes
     *  The REO SERIES is a reliable addition to users' current data
        protection strategy, and can be easily expanded and managed with a
        browser interface.
     *  It removes tape from backup's "critical path" and consolidates tape
        processing, paving the way for tape automation benefits.
     *  The REO SERIES saves purchases of additional media.
     *  It provides more reliable backup.

PRICING AND AVAILABILITY:

The Overland Storage REO SERIES R2000 Backup Acceleration Appliance is now available for a suggested retail price of $24,995 for 2 TB of Serial ATA RAID storage. The R2000 is fully interoperable with the recently-released Microsoft iSCSI drivers for Windows platforms.