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Overland's LibraryXpress Approved for Windows 2000 by Microsoft Windows Hardware Quality Labs; Qualifies for Microsoft Windows 2000 Logo Program

February 17, 2000

SAN DIEGO--(BUSINESS WIRE)--Feb. 17, 2000--Overland Data Inc. (NASDAQ:OVRL), a technology leader in tape backup products, today announced that its award-winning LibraryXpress(TM) has met the rigorous quality standards of Microsoft(R) Windows Hardware Quality Labs (WHQL), and has been approved to bear the "Designed for Microsoft Windows 2000" logo.

Overland's DLT(1) LibraryXpress was the first library to meet Microsoft's test criteria. The modularly scalable libraries are featured on Microsoft's Web site as having earned the WHQL specification.

The "Designed for Microsoft Windows 2000" logo identifies hardware and software products that have been tested and proven to meet Microsoft's high quality standards. The logo program and the stringent testing criteria of the WHQL are a symbol to users of product interoperability and reliability.

"This distinction as a logo product, and the support of the WHQL, are strong statements about the compatibility, versatility and reliability of Overland products," said Overland Vice President of Marketing Steve Richardson. "The testing process represents a wide range of features from plug-and-play operability to media changers running smoothly. In all categories, our products performed flawlessly, and Overland customers running Windows 2000 can be completely confident of the compatibility and reliability of the award-winning design."

The designation of "logoed" (carrying the Microsoft logo) differs from the WHQL designation of "compatible" wherein Microsoft explains that a compatible product has not met all the quality and interoperability requirements for the logo program but testing has deemed it suitable for operation under the Windows 2000 platform.

LibraryXpress, which has an installed base of over 20,000 worldwide, is an ideal backup solution for the Windows 2000 environment. It is designed for entry-level automation applications starting at 50 gigabytes, and is scalable to 4.8 terabytes for network storage. It is the first scalable automated library solution that eliminates the physical limitations of conventional tape library designs. The flexible SmartScale Storage(R) architecture of the LibraryXpress allows customers to start with a LXB Base Module containing one or two DLTtape drives and 10 cartridges, generating an automated storage capacity of up to 700 gigabytes (compressed) and a data rate of up to 72 gigabytes per hour (compressed). Capacity and performance can then be scaled upward based on individual customer requirements to create an ultimate multi-terabyte automated storage solution.

WHQL tested and approved the LibraryXpress with the optional Web TLC(TM), its innovative Web-based remote management technology, which was also found to operate compatibly with Windows 2000.

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 new standards 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 Travan tape drives, and has been licensed to Seagate Technology, Tandberg Data and Imation Corp. for inclusion in next-generation tape drives. Overland products, acclaimed for their quality and reliability, are sold worldwide through leading OEMs, including Compaq, IBM, Fujitsu Siemens Computers and Groupe Bull, commercial distributors such as Ingram Micro, Tech Data Corp. and Bell Microproducts, as well as storage integrators and value-added resellers.

(1) DLT and DLTtape are registered trademarks of Quantum Corp. worldwide

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.


     CONTACT: Overland Data
              858/571-5555
              http://www.overlanddata.com
              Steve Richardson (product information)
              srichardson@overlanddata.com
              Scott McClendon (investors)
              smcclendon@overlanddata.com
              Vernon LoForti (investors)
              vloforti@overlanddata.com
              or
              JPR Communications
              Judy Smith, 818/386-0403
              jprcommun@aol.com