News Release

SAN DIEGO--(BUSINESS WIRE)--May 20, 2002--Overland Data, Inc. (Nasdaq:OVRL), the fastest growing supplier of mid-range storage solutions, will continue to supply the new Hewlett-Packard Co. (NYSE:HPQ) with its mid-range tape automation products previously supplied to Compaq Computer Corporation and sold under the StorageWorks brand, as communicated in the product roadmaps published recently by the new HP.

Christopher Calisi, president and CEO of Overland Data, said, "We are gratified to be able to continue our relationship with the new HP, and we will be working during the next 60 days to define their future requirements for our relationship."

About Overland Data

Overland Data is a global supplier of innovative data storage and storage automation solutions for computer networks. The Company's reputation for delivering high availability products sets the standard for intelligent automated storage and scalability. Overland is the market leader in the mid-range tape automation market and 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.overlanddata.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 or future 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 economic conditions and 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 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.