(PM) , 06.02.2008 - ONStor ENDS THIRD CONSECUTIVE YEAR OF 100 PERCENT REVENUE GROWTH WITH THE largest fourth quarter SALES in THE company’s history

ONStor Expands Customer Base Worldwide as Demand for Scalable Clustered NAS Storage Solutions Reaches All-time High

CAMPBELL, Calif.— Feb. 6, 2008 — ONStor Inc., the leading provider of scalable clustered NAS storage solutions for the enterprise, today announced that the company ended its third consecutive year of 100 percent revenue growth. Its 2007 fourth quarter sales were the largest in the company’s history, due in part to expanded operations in China. In the fourth quarter, ONStor expanded its global portfolio of customers, adding 25 new companies in North America, the United Kingdom, continental Europe, Japan, and China.

“I am extremely proud of the way all of the ONStor organizations worldwide have driven hard to meet their sales goals,” said ONStor CEO Bob Miller. “Our strong sales are not only an encouraging sign that the demand for our product is increasing, but also demonstrate the success of our efforts to keep customer satisfaction a top priority.”

"The world is changing–rapidly. File-based data in the form of digital content is explosive and unpredictable,” said Steve Duplessie, senior analyst, The Enterprise Strategy Group, Inc. “Web 2.0 is going to become the biggest factor in the commercial computing world—bigger than anything that has come before—and that means huge growth of unstructured file data. ONStor is in a perfect place to continue to capitalize on these trends."

Designed with n-way clustering, file server virtualization, and single pool of open storage, ONStor’s clustered NAS products deliver the simplest, most efficient NAS storage management solution on the market today. ONStor’s NAS products offer thin provisioning, replication, business continuity and storage tiering to support the demanding needs of enterprise storage customers. NAS solutions from ONStor are extremely energy efficient, with power savings up to 95 percent as compared to both traditional direct-attached and competing networked attached storage environments. ONStor has succeeded by targeting customers in the Web 2.0, higher education, aerospace, geo-spatial mapping, and healthcare markets that produce data sets ranging from very large image files to small user files.

About ONStor
ONStor drives down the cost of storage management by delivering scalable clustered NAS that saves enterprises 50 percent on total cost of ownership with systems that let customers start small and scale massively as their requirements grow. ONStor’s award-winning Pantera Clustered NAS Systems and Bobcat NAS Gateways consolidate information from multiple Windows, UNIX and Linux devices into a single, highly scalable file storage environment. The open storage architecture allows existing assets to be leveraged, while integrated file server virtualization enables resources to be redeployed quickly to accommodate changing needs. Proven at hundreds of enterprise customer sites, ONStor delivers the cost-effective approach to scalable storage. More information about ONStor can be found at www.onstor.com or by calling toll-free 877-2ON-STOR (877-266-7867).

ONStor, the ONStor logo, Pantera and ONStor Bobcat, are trademarks of ONStor, Inc. in the U.S. and other countries. All other marks and trademarks may be the property of their respective owners. Information regarding products, services and offerings may be superseded by subsequent documents and are subject to change without notice. For the latest information and specifications regarding ONStor, Inc. and any of its offerings or services, please contact your local sales office or the corporate headquarters.

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