ONStor Doubles its Customer Base in 2006, Builds Momentum With Breakthrough Products

Virtualization capabilities, open storage, and superior price/performance drive growth

Storage Networking World, ORLANDO, FL. – October 31, 2006 - ONStor has announced that the company has more than doubled its customer base in 2006. Averaging 35 new enterprise customers per quarter for the year, the ONStor installed base is now greater than 180 organizations, compared to 80 at the end of 2005. This astounding expansion is attributable to the market's need for scalable NAS solutions to help manage storage in fast-growing environments and is further evidence of the company's rapid ascension in the NAS market.

With its rapidly growing install base, many marquis customers have turned to ONStor as their NAS provider of choice. 2006 additions to the ONStor customer list include companies such as eHarmony, Select Comfort, Shopzilla and The Ohio State University. As reasons for purchase, these customers cite ONStor's unique virtualization model that fixes their number one pain point - the lack of scalability found in conventional NAS - and the company's open storage model that enables the re-use of existing resources.

"At Shopzilla, we help shoppers search over 82,000 online stores to find exactly what they need. With over 19 million shoppers per month viewing pictures and descriptions on 60 million separate items, it adds up to a lot of capacity and bandwidth demand for our storage," said Burzin Engineer, director of infrastructure services at Shopzilla. "In order to keep pace, we turned to ONStor. They provided us with a NAS Gateway solution that allowed us to deploy the storage vendor of our choice, while delivering the ability to add capacity on the fly and increase performance and redundancy. They truly understood and met our needs."

Helping drive customer growth in 2006 was the introduction of ONStor's Pantera Clustered NAS system, the company's first product to integrate storage. ONStor's NAS portfolio, also includes the industry leading Bobcat NAS Gateways. All ONStor products integrate advanced features such as server virtualization and n-way clustering, and open storage interoperability. ONStor Pantera Clustered NAS allows customers to start with a complete configuration priced below $40,000, including 6TB of storage, and then independently grow both performance and capacity on demand and without disruption.

The growing customer base can now also leverage ONStor's recently announced Data Replication software. ONStor Mirror allows users to asynchronously replicate not only data, but also filer configurations, thus minimizing the downtime associated with bringing a backup data set online.

In 2006, not only did ONStor double its customer base, but also its sales force, including the company's first spread into continental Europe. To accommodate this growth, ONStor expanded its worldwide headquarters in Campbell, CA. The new facility includes a training center, a global customer support site, and a world-class interoperability testing lab.

"2006 has been a tremendous year for ONStor and the market has taken notice," said Jon Toor, VP of marketing, ONStor. "We've listened to our customers' needs and responded by offering scalable, reliable, and easy to use NAS systems that deliver superior value and price/performance compared to competitive offerings. By doing so, we've doubled our installed base and expanded our resources to support the growth."

About ONStor
ONStor drives down the cost of storage management by delivering enterprise-class file storage systems at affordable prices. ONStor's award winning Pantera Clustered NAS Systems and Bobcat NAS Gateways consolidate information from multiple Windows, UNIX and Linux devices to a single, highly scalable storage environment. 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).

Contact Agency:
Jay Russo
LVA Communications
860-739-5598
jay@lva.com

Contact ONStor:
Jon Toor
VP of Marketing
408-963-2463
jon.toor@onstor.com