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Overland Storage Teams With BlueArc to Offer Customers Maximum Network Storage Efficiency

March 28, 2003

SAN DIEGO and SAN JOSE, Calif., March 28 /PRNewswire-FirstCall/ -- Overland Storage, Inc. (Nasdaq: OVRL), a leading provider of storage solutions, announced today that the BlueArc(TM) SiliconServer family of products has been tested to work with Overland's active Storage Resource Manager (SRM) software. BlueArc provides high performance, highly scalable network-attached storage (NAS). IT professionals who deploy BlueArc's network storage and Overland's SRM solution will be equipped with a high performance NAS and the right tools to effectively manage their storage requirements.

"An enterprise that runs key applications on a NAS cannot afford to shut down," said John Cloyd, vice president and general manager of Overland's storage management business unit. "Overland's active SRM enables customers to predict and manage storage requirements on NAS systems, such as BlueArc's SiliconServer, through trend analysis, maintenance reporting tools and active management agents, to prevent storage downtime. When NAS solutions are paired with SRM tools, IT managers realize better service, save costs and reduce their workloads."

Overland SRM automates data storage policies, notifies IT managers of increasing disk requirements, and helps them plan for additional storage. Overland's active SRM also helps IT managers migrate old or dormant data and reclaim storage capacity. Through its compatibility with BlueArc's SiliconServer Architecture, customers using both products will benefit from increased NAS efficiency and availability, increasing the effectiveness of their business applications.

"BlueArc is committed to helping customers scale their network storage to achieve maximum efficiencies and business benefits from their stored data, and Overland's active SRM automates the monitoring of storage assets to fully optimize storage resources," said Jeff Allen, senior vice president of marketing for BlueArc. "The use of Overland SRM with BlueArc SiliconServers allows customers to understand what data resides on our system, then establish policies to ensure the highest return on storage investments."

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

About Overland Storage

Overland Storage, Inc. (Nasdaq: OVRL) is a leading global supplier of innovative hardware and software storage solutions for mid-range computer networks. The company's reputation for delivering high availability products, including its award-winning automated storage libraries and the industry's first family of fully open storage management software solutions, sets 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 .

About BlueArc

BlueArc Corporation and its SiliconServer Architecture deliver the world's only file server designed to scale beyond today's 1 Gbps networks toward tomorrow's 10 Gbps networks. BlueArc's SiliconServer Architecture moves software into programmable hardware and removes the bottlenecks that limit performance in other NAS systems on the market today. BlueArc SiliconServers deliver groundbreaking speed and scalability, simplifying the way our customers design and build their storage infrastructures. The company's headquarters are in San Jose, California with UK operations based in Bracknell, England. More information on BlueArc is available on the Internet at www.bluearc.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 continuing transitional issues at 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 launch of the company's new software 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. SOURCE Overland Storage, Inc.; BlueArc Corporation

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/CONTACT: investor relations, Cynthia A. Bond, Director of Corporate Communications of Overland Storage, Inc., +1-858-571-5555, cbond@overlandstorage.com ; or media, Jamie Ernst of Brodeur Worldwide, +1-310-316-9335, jernst@brodeur.com ; or Linda S. Fishman of BlueArc Corporation, +1-408-576-6655, lfishman@bluearc.com /

/Web site: http://www.bluearc.com