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Overland Storage, Customers' Choice for D2D2T Worldwide

April 5, 2005

Customers in France, Germany and U.S. Deploy REO and NEO

SAN DIEGO, April 5 /PRNewswire-FirstCall/ -- With more than 1,000 REO(TM) SERIES disk-based backup appliances shipped to date, Overland Storage, Inc. (Nasdaq: OVRL) today announced deployments with The Fachhochschule Amberg-Weiden, Neo Telecoms, Peoria Unified School District 11 and The Southern Federal Credit Union -- further illustrating that Overland's REO and NEO SERIES(R) are the ideal foundation for Disk-to-Disk-to-Tape (D2D2T) environments.

The REO SERIES of software-enhanced, backup-to-disk appliances eliminate the two most common causes of backup reruns -- media failures and human error -- while providing split-second file recovery. Complementing the REO is the award-winning NEO SERIES of automated tape libraries that deliver write-once-read-many (WORM) functionality and ensure the integrity, security and availability of compliance regulated, long-term data storage. Customers around the world are choosing Overland for these cost-effective and reliable solutions in order to significantly reduce backup windows, lower administrative costs and minimize risks associated with out-dated solutions.

The Fachhochschule Amberg-Weiden, a leading German university for applied sciences, can back up 1.2 terabytes in only three hours through the REO 4000 and NEO 2000 implemented by Semico Computer GmbH. With this central D2D2T solution, the university can also synchronize and consolidate data generated by nearly 2,000 students and professors connected via 35 servers at sites nearly 25 miles apart. "The Overland Storage REO 4000 and NEO 2000 were the natural choice as they represent a cost-effective and high-performance solution," explained Albert Dotzler, technical director of the data centre at The Fachhochschule Amberg-Weiden.

Recently launching a "storage on demand" service for corporate customers, Neo Telecoms, a major French telecommunications and network services provider, relies on the REO 4000 and two NEO 2000 libraries to ensure the reliability and security of the remote disaster recovery service. Integrated by Paris-based A2P, Neo Telecom's remote backup and recovery facilities have a capacity of seven terabytes, allowing companies of all sizes in Germany and France to transfer data as needed over long-distance networks with confidence. "Our customers feel secure knowing that when using our service their data can be moved from the REO 4000 to NEO 2000 tapes in a D2D2T configuration. And, they benefit from the REO 4000 tape virtualization functionality," stated Didier Soucheyre, president of Neo Telecoms.

Speeding up its disaster recovery plans by three years, Peoria Unified School District 11, one of Arizona's top school districts, was able to save $160,000 in IT investments with the addition of the high-capacity REO 9000 to its tape environment. Keeping to strict budgets and extending the value of existing technologies, the district was able to dramatically improve its backup and ensure the recovery of all servers within hours, meeting the state's IT requirements without loosing sight of its most important objective -- the education of students.

For The Southern Federal Credit Union (TSFCU), with 22,000 members and 190 employee groups in the Atlanta-area relying on TSFCU savings and loan products, ATMs and Internet banking capabilities, data protection is paramount. Vital records and transactions overseen by government regulations constitute two terabytes of data growing at nearly 20 percent annually -- straining a three-person IT team with limited resources. The REO 4000 and compact NEO 4100 put in place by Digital Data Solutions cut administrative costs and time by 75 percent and narrowed backup to three-to-four hours, while meeting TSFCU's uptime and compliance requirements.

"Together, Overland's REO and NEO are the perfect combination for highly efficient disk-to-disk-to-tape operations that provide optimal data protection at a really appealing price point," elaborated David Gill, network administrator for TSFCU.

"Overland partners and customers worldwide are quickly realizing the tremendous advantages REO and NEO offer as their D2D2T solution, as seen with The Fachhochschule Amberg-Weiden, Neo Telecoms, Peoria Unified School District and The Southern Federal Credit Union," added Christopher Calisi, president and chief executive officer, Overland Storage. "As a result, we continue to see our leadership grow in both disk-based backup and tape markets."

For case studies on the REO and NEO SERIES please visit http://www.overlandstorage.com/customer_success.html. More information on Overland's disk-based backup and recovery appliances, tape libraries and software PACs, ProtectionPAC and Multi-SitePAC, can also be found at http://www2.overlandstorage.com/product_index.aspx.

About Overland Storage

For almost 25 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 include the REO(TM) family of disk-based backup and recovery appliances and the award-winning NEO SERIES(R) 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 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 delays, unbudgeted expenses, inefficiencies and production problems that may result from the transition of manufacturing to Sanmina-SCI; difficulty of predicting sales to the company's major OEM customer; worldwide information technology spending levels; unexpected shortages of critical components; rescheduling or cancellation of customer orders; loss of a major customer; the market acceptance of the company's REO product line, the timing and market acceptance of new product introductions by the company, including the company's new software PACs, competitors or licensees of the company; 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 general 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.

SOURCE Overland Storage, Inc.
04/05/2005
CONTACT: Melinda Hutcheon, PR Manager of Overland Storage,
+1-858-495-4187, mhutcheon@overlandstorage.com; or Chris Walker of Brodeur,
+1-602-808-1170, cwalker@brodeur.com, for Overland Storage
Web site: http://www.overlandstorage.com/customer_success.html
Web site: http://www2.overlandstorage.com/product_index.aspx
Web site: http://www.overlandstorage.com