ONSTOR, XIOTECH JOIN FORCES TO DELIVER ENTERPRISE NAS AT A MIDRANGE PRICE

SAN JOSE, CA October 31, 2005 � ONStor Inc., the leader in Enterprise NAS Gateway solutions, and Xiotech a leading storage innovator, today announced a new joint NAS solution that combines ONStor NAS Gateway technology with the Xiotech Magnitude 3D Storage solution to create an affordable enterprise-class NAS system featuring scalability to 40 Petabytes, industry-leading performance and availability at a breakthrough cost/performance point.

The ONStor/Xiotech Scalable NAS Solution (SNS) gives enterprise users an affordably priced NAS implementation that scales as business needs increase, ensuring that users only pay for the storage they need at any given time. The solution is easily upgradeable to other system classes as storage demands grow without any interruption to business processes. Both the ONStor Gateways and Magnitude 3D Storage solution can be expanded on demand to deliver maximum scalability.

The ONStor/Xiotech SNS combines the native high-availability technology of ONStor�s and Xiotech�s product offerings to ensure that information is always accessible when needed. ONStor�s NAS Gateways include N-way clustering capabilities for multiple levels of redundancy, while Xiotech�s architecture employs fibre-distributed storage clusters that require no planned downtime and are highly resilient to the full spectrum of events that cause planned downtime.

�ONStor and Xiotech have partnered to provide midrange to enterprise users with a highly scalable and available NAS solution that will outperform similar product offerings from other vendors at a more cost-effective price,� said Jon Toor, vice president of marketing at ONStor. �It is the value proposition of this joint offering that makes it unique. Customers can implement affordable enterprise-class NAS and pay only for the storage they need as they grow.�

�High availability and scalability are hallmarks of both the Xiotech Magnitude family of network storage solutions and the ONStor Gateways,� said Mike Stolz, vice president of marketing at Xiotech. �By combining these complementary technologies, we are enabling customers to derive maximum business value from their storage by offering a true balance between cost and performance. As their business requirements dictate more storage, this solution will grow seamlessly to meet their needs.�

The new solution also provides flexibility in choosing the class of storage implemented, which allows customers to balance performance requirements with cost containment by enabling both lower-cost SATA drives and higher-performance Fibre Channel drives to co-exist within a single storage infrastructure. Additionally, ONStor�s Gateways permit entry-level and high-performance filers to be combined within a single cluster.

The Xiotech ONStor Scalable NAS Solution also simplifies storage management, bringing even greater value to this solution. By implementing a fully integrated NAS Gateway from ONStor, managers can quickly and easily configure settings for their business needs. Xiotech�s Magnitude 3D storage solution is designed for single-point management that delivers ease of use and a near-zero user learning curve.

The ONStor Bobcat NAS Gateway lets IT managers consolidate storage from multiple Windows, Linux and UNIX servers into a single environment, simplifying management and dramatically reducing overall costs. As the first enterprise-class NAS Gateway to seamlessly scale from 1 terabyte to 40,000 terabytes of capacity, the ONStor Bobcat integrates both storage and processor virtualization technologies in a modular fashion that allows IT managers to scale performance and capacity well beyond competitive solutions from Network Appliance and EMC � while creating an open storage environment.

Magnitude 3D systems are available now from both Xiotech direct sales and value-added resellers (VARs) participating in Xiotech�s Dimensional Partner Program. Xiotech�s line of network storage solutions runs from Magnitude 3D 3000e for entry-level configurations to Magnitude 3D 3000s for enterprise deployments, and now also includes the TimeScale� geo replication appliance for advanced disaster protection and recovery.

The ONStor/Xiotech joint NAS solution is available from resellers and system integrators worldwide and retails from about $65,000. To learn more about the solution, call 877-266-7867.

About Xiotech
Xiotech makes information storage easy to manage. In the last ten years more than 1,500 midsized businesses have taken advantage of Xiotech�s easy-to-use and highly resilient storage management solutions. The company�s products include Magnitude 3D 3000, Magnitude 3D 3000e, and the TimeScale geo replication appliance. Current customers include Merrill Lynch, Bechtel, Lucent, Hibernia Bank, and St. Vincent Hospital. Xiotech also partners with industry leaders such as Brocade, Cisco, McDATA, Microsoft, and Novell. In 2004 Xiotech achieved record 25% revenue growth, and was named the fastest growing technology company in Minnesota by Deloitte & Touche in 2003. Xiotech is based in Eden Prairie, Minn. For more information, visit www.xiotech.com, email info@Xiotech.com, or call toll free 1-866-472-6764.

About ONStor
ONStor is the leader in enterprise-class NAS Gateways that consolidate file services on multi-vendor storage. ONStor storage solutions dramatically reduce management costs by providing customers with the most easily scaled storage environment, and reduce capital costs by delivering the freedom and flexibility of the industry's most interoperable platform. ONStor products and technology are offered by leading system integrators and resellers worldwide. All products are backed by a host of support offerings and by ONStor's uncompromising commitment to customer service. More information about ONStor can be found at www.onstor.com or by calling toll-free 877-2ON-STOR (877-266-7867).