Overland Storage REO Accelerates Critical Backups and Restores for State of Oregon

Overland Storage REO Accelerates Critical Backups and Restores
for State of Oregon
Speed, Flexibility and Affordability Drive Adoption of High-Performance
Disk-Based Appliance by State Government Agency 


SAN DIEGO, Aug. 19  /PRNewswire-FirstCall/ -- Overland Storage, Inc.
(NASDAQ:OVRL), the leading provider of backup and recovery solutions, today
announced that the State of Oregon's Department of Consumer and Business
Services has selected its REO(TM) disk-based backup and recovery system to
protect mission-critical data for its nine divisions and 17 field offices.  As
a high-performance disk-based backup and recovery appliance, the REO
significantly increases the speed of full backups over previous methods, while
boosting recovery times to provide near-instantaneous restores of current data.
 West Coast Technology, an Overland value-added reseller, facilitated the sale.

The State of Oregon's Department of Consumer and Business Services regulates
vital entities including Insurance, Banking and Securities; Worker's
Compensation; and Occupational Safety & Health Agency (OSHA).  A growing
reliance on electronic data throughout the agency's divisions caused storage
requirements to escalate, doubling annually for the past three years.  As a
result, the state decided to augment its existing tape backup operations with a
streamlined disk-to-disk (D2D) solution.

According to Ellen Murphy, backup administrator for the Department of Consumer
and Business Services, the REO system dramatically reduced the delay, expense
and burden of backing up and recovering critical data.  "The speed, flexibility
and ease with which the REO backs up and restores data have exceeded our
expectations," she said.  "The REO accelerates our entire backup and recovery
operation considerably -- for significantly less than the price of other
alternatives we investigated."

With the REO in place, the department can now back up eight servers
simultaneously, enabling it to back up all 65 of its servers in less than six
hours -- a significant improvement over the 24 hours it took previously, even
using fast LTO drives.  In addition, the department can move the data from the
REO to tape (D2D2T) without affecting network performance, which had been
problematic in the past.

"We now have the flexibility to conduct duplications and vault processes
outside the typical off-hours window," Murphy said.  "And managing the device
using the Web-based interface is so easy that I can manage backup and restore
operations even while away from the office."  Murphy added that the department
is assessing the REO's use in centralizing field office backups, eliminating
the need to rely on non-technical staff to manage tapes.

"The State of Oregon's use of REO demonstrates the power of disk to quickly and
seamlessly back up data," said Dave Holloway, chief operating officer, West
Coast Technology.  "REO is the only product that offered the department the
high level of data protection it demands and the certainty that its data is not
only securely backed up, but can be instantaneously recovered."

According to Murphy, another benefit of the REO platform is the ability to
perform near-instantaneous restores.  Prior to its implementation, the
department took upward of 45 minutes to locate and mount tapes in its library.
Now, restores can be completed almost immediately without additional
administrative intervention.  To augment its tape operation, the department is
evaluating Overland's NEO(R) 2000 library system because its scalable, modular
architecture is ideal for handling incremental growth.  The addition of a
second REO system is also planned.

"REO plays a pivotal role in ensuring the success of the State of Oregon's
backup and recovery efforts," said John Matze, vice president and chief
technology officer, Overland Storage.  "The product's versatility makes it
simple to improve backup and recovery times while easily integrating into
existing storage and archival processes."

Introduced in April 2004, the REO 4000 is Overland's next-generation disk-based
backup and recovery product that supports data transfer rates of up to 300 GB
per hour, performing significantly faster than many other disk-based products. 
The easy-to-install, preconfigured system incorporates high-capacity, serial
ATA disks, specialized software, both iSCSI and Fibre Channel connectivity, and
RAID 5 capabilities.  When integrated with tape automation, such as Overland's
NEO Series of tape libraries, REO provides a comprehensive disk-to-disk-to-tape
solution.  The REO is available through select Overland partners.

About Overland Storage

For more than 20 years, Overland Storage has delivered world-class data
protection solutions designed to ensure business continuity.  Focused on backup
and recovery, Overland's data protection solutions are designed for entry-level
and midrange computing environments.  These include the REO family of
disk-based backup and recovery appliances and the award-winning NEO Series of
tape libraries.  Overland sells its products worldwide through leading OEMs,
commercial distributors, storage integrators and value-added resellers. For
more information, visit Overland's website at http://www.overlandstorage.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 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 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, its competitors
or its licensees, including the company's new REO and NEO 8000 products, the
timing and amount of licensing royalties, general competition and price
pressures in the marketplace, the company's ability to control costs and
expenses and economic conditions.  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-Q for the qtr ended March 31, 2004.  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.

All trademarks, trade names, service marks, and logos referenced herein belong
to their respective companies. 

DATASOURCE: Overland Storage, Inc.



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Inquiries, Melinda Hutcheon, PR Manager, [phone],

, both of Overland Storage; or Jamie Ernst of

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