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Overland's ULTAMUS PRO Primary Storage Anchors Tiered Storage Solution to Deliver Fail-Safe Data Protection for Medical Billing Firm

August 8, 2006

Leading Healthcare Accounting Firm Achieves Multiple Points of Data Recovery and Full HIPAA Compliance While Lowering Administrative Overhead by 40 Percent

SAN DIEGO, Aug. 8 /PRNewswire-FirstCall/ -- Overland Storage, Inc. (Nasdaq: OVRL) today announced that Physicians Accounting, a Wisconsin-based professional accounting services firm for anesthesia providers has deployed its ULTAMUS(TM) PRO 500 protected primary storage appliance as well as the REO SERIES(R) disk-based backup appliance and NEO SERIES(R) tape library for unsurpassed levels of data protection across all storage tiers.

Since its inception in 1974, Physicians Accounting has focused on delivering the highest levels of medical accounting services for its clients while complying with ever-changing regulations in healthcare. As a result, the firm has grown steadily and now supports hundreds of anesthesia providers in private practice as well as physician groups of varying size and complexity. In safeguarding clients' sensitive medical information, the company adheres to a "save and save often" data protection philosophy to ensure the privacy, security, availability and integrity of mission-critical accounting data.

According to Roy Mowbray, systems administrator for Physicians Accounting, the decision to implement a comprehensive information lifecycle management (ILM) strategy led to an evaluation of Overland's tiered-storage approach. "We needed instant access to our most crucial accounting files, expedited recovery of near-term data and more efficient management of archived information," he says. "With Overland, we were able to work with a single, trusted source to create a bulletproof, tiered storage platform that maximized the value of our storage resources."

Physicians Accounting leverages Overland's ULTAMUS PRO 500 with embedded Protection OS software intelligence and advanced features, including unlimited and near-instantaneous snapshots as well as local and remote replication of the company's SQL Server, Microsoft Exchange and other vital business applications. The company then takes advantage of the built-in virtual tape library (VTL) capability on a REO 1000 appliance to perform fast, disk-based backups and expedited file restores. More than seven years of vital accounting records then are offloaded onto a NEO 2000 tape library for long-term archival and complete HIPAA regulatory compliance.

"In carrying out our 'Simply Protected Storage' vision, Overland continues to put economical yet powerful tiered storage solutions within reach of small- and medium-sized organizations," says Christopher Calisi, president and CEO of Overland Storage. "Our ULTAMUS PRO 500, REO SERIES and NEO SERIES work together seamlessly to help companies like Physicians Accounting store vital data where it makes the most sense, depending on availability, recoverability and compliance requirements."

With ULTAMUS PRO 500, Physicians Accounting has realized a three-fold increase in storage read/write performance while achieving both its Recovery Point Objectives (RPOs) and Recovery Time Objectives (RTOs) for applications requiring nearly continuous data availability and near-instantaneous recovery from data loss or corruption. Additionally, disk-based backups now are four times faster with the REO 1000 while overall administrative overhead has been lowered by more than 40 percent with the combined Overland primary storage, disk backup and tape archival solution.

"With Overland, we now have multiple points of recovery to achieve the perfect balance between protection, performance and total cost of ownership," adds Mowbray. In the future, a second ULTAMUS PRO will be installed at the firm's disaster recovery site to support remote data replication for complete business continuity.

ULTAMUS PRO 500, formerly known as ULTAMUS I, includes a storage processor, RAID protected storage array with redundant core components, built-in Protection OS software and up to 32 TB of raw storage capacity. The ULTAMUS PRO 500 delivers greater storage management simplicity, lowered TCO and enhanced replication performance. The product is available from Overland partners worldwide at a starting MSRP of $34,994.

About Overland Storage

Now in its 25th year, Overland Storage is a market leader and innovative provider of simply protected storage solutions -- smart data protection appliances and software modules designed to work together, affordably, to ensure that information is automatically safe, readily available and always there. Overland's award-winning data protection solutions include the ULTAMUS SERIES(TM) of protected primary storage appliances; the REO SERIES(R) of disk-based backup and recovery appliances; and the NEO SERIES(R) and ARCvault(TM) tape automation solutions. Overland sells its products through leading OEMs, commercial distributors, storage integrators and value-added resellers. For more information, visit Overland's web site 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," "estimates," expects," "projects," 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 risks and uncertainties associated with the company's acquisition of Zetta Systems, Inc., including possible integration difficulties and successful execution of the business plan related to the acquisition; possible delays in new product introductions and shipments by the company including the new ULTAMUS and ARCvault lines, including versions subject to the company's new OEM contracts; possible delays in enhancements to the company's REO line; market acceptance of the company's new product offerings; the timing and market acceptance of new product introductions by competitors; the speed at which HP transitions from the products it currently buys from the company to its next-generation products to be purchased from another vendor; delays, unbudgeted expenses, inefficiencies and production problems that may result from the transition of manufacturing to Sanmina-SCI; worldwide information technology spending levels; unexpected shortages of critical components; rescheduling or cancellation of customer orders; loss of a major customer; 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 currently on file with the SEC. These forward-looking statements speak only as of the date of this release and the company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Overland, Overland Storage, ARCvault SERIES, ULTAMUS SERIES, REO SERIES, NEO SERIES and PROTECTION OS are trademarks or registered trademarks of Overland Storage, Inc.


SOURCE Overland Storage, Inc.
CONTACT:
Melinda Hutcheon, PR Manager of Overland Storage,
+1-858-495-4187, mhutcheon@overlandstorage.com; or Sue Hetzel of HetzelMeade
Communications, +1-760-434-9927, sue@hetzelmeade.com, for Overland Storage, Inc.
Web site: http://www.overlandstorage.com
(OVRL)