ONSTOR REPORTS STRONG Q3 RESULTS

ONStor Inc., the leading provider of scalable clustered NAS storage solutions for the enterprise, today announced growth of 84 percent in worldwide sales over the third quarter of 2006. Through a strong channel focus, ONStor expanded its global portfolio of customers in North America, the United Kingdom, continental Europe and Asia by adding 30 new companies this quarter including University of Oregon, Mentor Graphics and Limehouse Software, Ltd.

ONStor now boasts more than 375 enterprise customers worldwide that have deployed its award winning Pantera Clustered NAS systems and

Bobcat NAS gateways. The company has met success by targeting customers in Web 2.0, higher education, aerospace, geo-spatial mapping and healthcare markets that produce data sets that range from very large image files to small user files. Channel sales in the United States made up 55 percent of total sales with the remainder fulfilled through direct sales. "Our sales continue to rise, proving that we clearly understand our customers' pain points and deliver technology solutions that solve them," says ONStor CEO, Bob Miller. "In a fiercely competitive NAS storage market, it's important to always put the voice of the customer first and develop technology that meets their needs and is always evolving."

ONStor's award-winning Pantera Series Clustered NAS solutions are designed with n-way clustering, virtual file servers and single pool open storage to deliver the simplest most efficient storage solution on the market today. ONStor's NAS also products offer file server virtualization, thin provisioning, replication, and storage tiering. NAS solutions from ONStor are extremely energy efficient with power savings up to 95 percent as compared to traditional direct-attached and networked storage environments.

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).