Overland Storage to Sell REO 1000 Through Insight

Overland Storage to Sell REO 1000 Through Insight
Industry's First Disk-Based Alternative to Tape Autoloaders Provides Affordable
Backup and Recovery for Small and Medium Businesses 


SAN DIEGO, July 26  /PRNewswire-FirstCall/ -- Overland Storage, Inc.
(NASDAQ:OVRL), the leading provider of backup and recovery solutions, today
announced that Insight Direct, USA, a premier single source provider of IT
products and services, has added the Overland Storage REO(TM) 1000 to its
product line.  The REO 1000, featuring iSCSI connectivity, is the first
disk-based alternative to entry-level tape autoloaders.

"The need for affordable disk-based backup and recovery is growing, and it's no
surprise that sales of the REO 1000 have already begun," said Gary Woods, vice
president of product management, Insight.  "The REO 1000 combines the benefits
of a disk-based solution with the affordability of a tape autoloader, making it
the ideal choice for our budget-sensitive customers."

"Insight and Overland are proud to continue their strategic partnership with
this latest innovative disk-based backup product specially designed for the
small- to medium-sized business market," said Christopher Calisi, president and
CEO, Overland Storage.  "REO 1000 enables Overland to continue to provide
affordable, effective and reliable data protection solutions to customers of
all sizes that need to ensure and protect their businesses."

The newest addition to the rapidly growing REO family, the REO 1000 accelerates
the backup process and provides high-speed file restores using iSCSI to deliver
more cost-effective data protection than entry-level tape autoloaders. 
Customer sales of the REO 1000 have begun, as small- and medium-sized
businesses need an affordable, easy-to-use data protection solution that
automates the backup and recovery process and reduces the risk of business
interruptions.

The REO family was one of the first products offering true iSCSI connectivity,
which uses familiar and inexpensive Ethernet technology and components to
deliver high speed and high performance at a fraction of the cost of Fibre
Channel implementations.  Simple, effective and easy to manage, iSCSI
transports low latency SCSI blocks across IP networks.

  REO 1000 Features and Benefits
   *  1TB native (2TB compressed) of data storage capacity provides
      unattended backup for small- and medium-sized business applications.
   *  LTO-2 tape drive emulation capabilities mean easy integration into
      existing storage environments.
   *  1u form factor enables more efficient use of costly data center space.
   *  Gigabit Ethernet (iSCSI) connectivity provides low-cost networking.
   *  RAID data protection capabilities offer redundant data protection.
   *  Virtualized storage targets allow users to customize the backup
      structure to meet their needs.
   *  Widespread operating system and third-party software application
      support enables easy integration, including Windows, Solaris,
      BackupExec, ARCserve and more.

  Pricing and Availability


The Overland Storage REO 1000 disk-based backup and recovery appliance is now
available through Insight and other direct marketers and distributors. For
information please visit http://www.insight.com/.

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 difficulty of predicting
sales to the company's major OEM customer, 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, including the launch of the company's
new REO products, its competitors or its licensees, 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-K for the most recently completed fiscal year.  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.



CONTACT:  investor relations, Cynthia A. Bond, Director of Corporate

Communications, [phone], , or media

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

, both of Overland Storage; or Chris Walker of

Brodeur Worldwide, [phone], , for Overland Storage



Web site:  http://www.insight.com/ 

Web site:  http://www.overlandstorage.com/ 

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