Press Release

nStor's AdaptiveRAID for WINDOWS NT ENABLES INDUSTRY'S FIRST ULTRA160/M RAID SOLUTION

LAKE MARY, Florida - July 21, 1999 -- nStor Corporation, Inc. (AMEX: NSO), a global manufacturer of RAID and information storage solutions, today announced the availability of the industry's first Ultra160/m SCSI RAID solutions for the Microsoft Windowsâ NTÔ environment. Designed to use Quantum's new Ultra160/m hard drives and an Ultra160/m host adapter, the solutions utilize nStor's AdaptiveRAIDâ software for Windows NT, a patented, next-generation RAID technology that dynamically adapts to network traffic patterns to gain data protection and maximum performance. In addition, by combining an AdaptiveRAID Ultra160/m kit with nStor's existing storage systems, IS administrators have an immediate upgrade path to a cost-effective and high-performance Ultra160/m RAID solution for NT workstations and servers.

Ultra160/m SCSI is a next-generation SCSI interface based on Ultra3 SCSI that provides significant improvements in performance, manageability and cost of ownership. Industry analysts expect Ultra160/m SCSI to extend parallel SCSI technology into the 21st century for use with Windows NT and UNIX system workstations, video and web servers, and storage area networks.

Continuing nStor's commitment to reduce the total cost of storage ownership by offering an upgrade path to latest technology as it emerges, nStor's transition to Ultra160/m is the result of close partnership efforts with Quantum Corporation (NASDAQ/NMS: QNTM). Quantum's new Ultra160/m Atlas 10K and Atlas IV hard disk drives are now available for nStor's CR8e, CR8L, GigaSTOR160 and the newly introduced NexStor 8Le storage systems.

"One of the major benefits of the AdaptiveRAID technology is its technology-independence," stated Steve Hammond, vice president of marketing and new business development for nStor Corporation. "As new SCSI and Fibre Channel technologies such as Ultra160/m, Ultra320 and Fibre 2 emerge, AdaptiveRAID offers an easy migration path for customers who want to upgrade to these newer technologies, while still extending the life of their legacy storage products."

"As part of nStor's commitment to minimize product obsolescence and maximize user investment in SCSI and RAID technology, nStor's CR8e, CR8L and NexStor 8Le storage systems were designed to utilize 160/m technology," added Hammond. "The CR8e, which was first introduced in January, 1997, is the only Ultra/Wide storage enclosure available on the market today that can also support Ultra2 (LVD) and 160/m SCSI technology. This is a clear validation of nStor's commitment to investment protection for the customer."

"nStor's AdaptiveRAID, coupled with Quantum Ultra160/m Atlas drives promises to offer unparalleled protection, performance and ease-of-use," said Pat McGarrah, technology program director for Quantum Corporation. "As the first to provide a complete Ultra160/m SCSI RAID solution, nStor has again taken a leadership role in the storage industry."

AdaptiveRAID for Microsoft Windows NT
AdaptiveRAID is nStor's patented next-generation RAID technology designed to bring high-end RAID functionality to the entry-level and mid-size server and workstation market. In addition to offering complete fault- tolerance and data protection, AdaptiveRAID provides increased disk array performance while eliminating the complexity of RAID setup and configuration. The user no longer has to decide on RAID levels or stripe sizes for optimal performance; AdaptiveRAID provides maximum performance by making intelligent adaptations to changes in the I/O workload and patterns. This also has the effect of virtually eliminating many of the RAID-5 write penalties associated with today's existing RAID technology, significantly improving array performance anywhere from 30% to 100% depending on the actual I/O workload. An enhanced 'degraded mode' performance feature significantly improves array performance by as much as 30% during failed disk and rebuild operations.

AdaptiveRAID is uniquely suited for the mix of legacy and new storage technologies that make up most IT infrastructures. AdaptiveRAID's mixed-disk capacity feature maximizes storage space and extends legacy disk drive life by allowing users to add disks of varying capacities and vendors to an existing array without sacrificing capacity or performance. Interfacing with Fibre Channel-Arbitrated Loop (FC-AL), Ultra/Wide SCSI, Ultra2 (LVD) SCSI, and now Ultra160/m SCSI architectures, AdaptiveRAID also offers maximum flexibility in storage design for the NT environment in many applications.

"We're seeing the most dramatic performance increases in environments utilizing large block sizes, such digital content creation applications," commented David Stallmo, director of engineering of nStor's Boulder Development Center. "Utilizing a 32-bit dual 300MHz processor with eight 160/m 10,000 RPM drives running high-end video applications, we are seeing a 50% improvement in performance over our Ultra2 testing."

About Ultra160/m
Ultra160/m SCSI doubles the data transfer speeds of Ultra2 SCSI, offering throughput speeds up to 160MB/second to improve scalability and accommodate faster devices. In addition, Ultra160/m SCSI contains three major core features defined in the Ultra3 SCSI specification:

• Double-edge clocking allows systems to run faster by doubling the data transfer speeds to 160MB/second, without increasing clock frequencies
• Cyclical redundancy checking (CRC) provides higher levels of data reliability to ensure complete integrity of transferred data through enhanced detection of communication errors
• Domain validation detects the configuration of the SCSI bus and automatically tests and adjusts the SCSI bus transfer rate to optimize interoperability.

Another key feature of 160/m SCSI is that it uses standard Ultra2 LVD cabling and termination, making it backward compatible for easy and smooth implementation while preserving user investment in existing equipment.

Availability and Pricing
nStor's Ultra160/m RAID solution will be available either as a complete turnkey RAID configuration or as an upgrade kit for existing storage systems. The AR160-2-3181WT turnkey configuration, which includes a CR8L 8-bay tower enclosure with three 18GB, 10,000 RPM Ultra160m disk drives (54GB), an Ultra 160/m host adapter, two 1-meter cables and AdaptiveRAID software for Windows NT, will be available in September 1999 for a list price of $9289. The CRX-ADAPT-160 AdaptiveRAID Ultra160/m upgrade kit will also be available in September 1999.

About Quantum Corporation
Founded in 1980, Quantum Corporation (www.quantum.com) is a diversified mass storage company committed to achieving customer satisfaction through high quality and reliability. Quantum is the highest volume global supplier of hard disk drives for personal computers, a leading supplier of high capacity hard drives and the worldwide revenue leader among all classes of tape drives. Quantum sells a broad range of storage products to OEM and distribution customers worldwide. Quantum's sales for the fiscal year ending March 1999 were $4.9 billion.

About nStor
nStor Corporation is the leading manufacturer and supplier of high availability, high-performance information storage solutions, including external RAID solutions, desktop storage systems, AdaptiveRAID technology and advanced storage management software. nStor products are marketed through a worldwide network of OEMs and distributors. A wholly owned subsidiary of nStor Technologies, Inc. (AMEX: NSO), nStor's home office is located in Lake Mary (near Orlando), Florida, with remote sales offices located throughout the U.S., Europe, the Pac-Rim and Latin America. Additional information about nStor and its products can be found on the World Wide Web at www.nstor.com.

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