N2Power Announces the XL160 Ultra-compact AC-DC Power Supply Family; High Power Density and High Efficiency for the OEM Market.

Business Editors/High-Tech Writers

SIMI VALLEY, Calif.--(BUSINESS WIRE)--Jan. 8, 2004

N2Power, a Qualstar Company (Qualstar(R) Corporation) (Nasdaq:QBAK), today announced the XL160 Series of 160 watt AC-DC power supplies, which deliver very high power density in an extremely small footprint. Based on N2Power's unique, patented technology, the XL160 Series supplies deliver more power in less space, reducing wasted input power and associated heat, yielding improved reliability and lower cost of ownership.

Developed for OEM applications such as industrial automation, telecommunications, security and surveillance systems, and network servers, the XL160 Series packs 160 watts of output power into less than 15 square inches of valuable system real estate. Its low profile packaging yields an unmatched 8.5 watts per cubic inch power density, making the system designer's job much easier.

"The XL160 Series features the packaging, performance, features and reliability that OEMs need," said Dave Barton, N2Power's president. "Our patented, high-efficiency technology gives OEM engineers and designers a distinct advantage. The XL160 Series allows them to incorporate more power in smaller packages, while also reducing overall power consumption and cooling requirements."

Like all N2Power products, the eight XL160 models include key features such as Power Factor Correction for reduced input power requirements, and high efficiency: over 90% in some models. All N2Power power supplies meet a full range of international agency approvals, including UL, cUL, DEMKO, CE Mark and FCC Class B.

N2Power's XL160 family of power supplies are sold worldwide through its network of representatives. Development units are available immediately. Call 805-583-7744 or visit www.n2power.com for further information.

About Qualstar Corporation

N2Power is a Qualstar Company which designs, manufactures and sells its power products to OEMs and Systems Integrators. Qualstar is a manufacturer of automated tape libraries used for backup, archival storage, data protection and disaster recovery. Its products are known throughout the world for their rugged, Simply Reliable design yielding years of trouble-free operation. Qualstar tape libraries are sold, installed, and supported worldwide by selected Value Added Resellers, Systems Integrators and Original Equipment Manufacturers. Qualstar Corporation is publicly traded on the NASDAQ National Market under the symbol QBAK. More information is available at www.qualstar.com or by phone at 805-583-7744.

Forward-Looking Statements

Statements in this press release concerning the future business, operating results and financial condition of the Company are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the Company's actual results include the Company's ability to increase sales of its tape libraries which incorporate 1/2-inch tape drives, whether the Company's initiatives to maintain and increase sales of its tape libraries based on 8mm AIT tape technology will be successful, whether development of the Company's new enterprise-class tape libraries will be completed on time and achieve customer acceptance, rescheduling or cancellation of customer orders, unexpected shortages of critical components, unexpected product design or quality problems, and adverse changes in market demand for tape libraries or Qualstar's products. The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. Further information on these and other potential factors that could affect the Company's financial results or condition is included in Qualstar's filings with the Securities and Exchange Commission. In particular, reference is made to the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2003, and to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its Form 10-K and its most recent Quarterly Report on Form 10-Q.