News Release

Five-Day Event Draws More Than 200 Partners Worldwide

SAN DIEGO, Oct. 12 /PRNewswire-FirstCall/ -- Overland Storage, Inc. (Nasdaq: OVRL), a leading provider of backup and recovery solutions, recognized its partners throughout the world for outstanding performance at its annual Global Partner Summit last week. Overland acknowledged its highest performing value-added resellers, direct marketers and distributors from North America, EMEA and Asia-Pacific for their success. Partners honored for their contributions are:

North America

Direct Marketer of the Year, Outstanding REO Contribution -- CDW

Direct Marketer of the Year, Fastest Growing -- PC Mall, Inc.

Distributor of the Year, Outstanding REO Contribution -- Bell Microproducts, Inc

Distributor of the Year, Outstanding NEO 8000 Contribution -- Condre, Inc.

Highest Overall Revenue Contribution, Western Region -- Zzyzx Peripherals, Inc.

Outstanding REO Contribution, Western Region -- West Coast Technology

Outstanding NEO 8000 Contribution, Western Region -- Federal Edge, Inc.

Highest Overall Revenue Contribution, Eastern Region -- Open Storage Solutions

Outstanding REO Contribution, Eastern Region -- Advistor, Inc.

Outstanding NEO 8000 Contribution, Eastern Region -- Dataline, Inc.

Largest Single Product Sale -- Promark Technology, Inc.

Largest Single Product Sale -- I/O Dynamix, Inc.

EMEA

Reseller of the Year -- Transtec AG

Distributor of the Year -- Hammer

Reseller of the Year, Central Region -- Advanced UniByte GmbH

Distributor of the Year, Central Region -- Orchestra Service GmbH

Reseller of the Year, Southern Region -- STORDATA

Distributor of the Year, Southern Region -- Tech Data

Reseller of the Year, Northern Region -- Posetiv Ltd.

Distributor of the Year, Northern Region -- Four Leaf Technologies

Asia Pacific

Distributor of the Year, Asia Region -- SYSTEX Corporation

Distributor of the Year, Pacific Region -- Datastor NZ Ltd.

Overland sells all of its award-winning products, including the REO(TM) family of disk-based backup and recovery appliances and NEO SERIES(R) of automated tape libraries, exclusively through its channel partners.

"Our channel partners are key to Overland's success and growth as we continue to develop new products focused on data protection," said Christopher Calisi, president and CEO, Overland Storage. "Overland is 100 percent committed to the channel, and is the only storage company that has never sold direct. Our success goes hand in hand with that of our partners, and we're pleased to recognize their outstanding performances during the year."

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 production problems, delays, unbudgeted expenses and inefficiencies that may result from the transition of manufacturing to Sanmina-SCI, 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 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.

SOURCE Overland Storage, Inc.
10/12/2004
CONTACT: Investors, Cynthia A. Bond, Director of Corporate Communications, +1-858-571-5555, cbond@overlandstorage.com, or Media, Melinda Hutcheon, PR Manager, +1-858-495-4187, mhutcheon@overlandstorage.com, both of Overland Storage; or Jamie Ernst of Brodeur Worldwide, +1-210-495-5757, jernst@brodeur.com, for Overland Storage
Web site: http://www.overlandstorage.com