N2Power Announces the XL250 Ultra-Compact AC-DC Power Supply Family; High Power Density and High Efficiency for the OEM Market.

SIMI VALLEY, Calif. -- N2Power, a Qualstar Company (Qualstar(R) Corporation) (Nasdaq:QBAK), today announced the initial models of the XL250 Series, a family of very compact, 250 watt AC-DC switching power supplies. Based on N2Power's unique packaging technology, the XL250 Series supplies deliver more power in less space, reducing wasted input power and associated heat, while yielding improved reliability and lower cost of ownership.

The XL250 Series delivers 250 watts of output power from less than 18 square inches of valuable system real estate. Very low profile packaging yields an unmatched 9.25 watts per cubic inch power density, making the system designer's job much easier. The XL250 family is expressly designed for OEM applications such as industrial automation, telecommunications, gaming systems, security and surveillance systems, and network servers.

"The XL250 Series gives OEMs a distinct edge by incorporating more power into smaller packages, while simultaneously reducing overall power consumption and cooling requirements," said Randy Johnson, N2Power general manager. "Our very compact, high-efficiency technology gives OEM engineers and designers new flexibility in their power systems designs that pays real competitive dividends in their final products."

Like N2Power's widely regarded XL125 and XL160 power supply families, the XL250 Series incorporates industry leading features such as active power factor correction for reduced input power, built in or'ing diodes, active inrush current protection, remote on-off, and high efficiency: up to 88% in some models. All N2Power supplies meet a full range of international agency approvals, including UL, cUL, DEMKO, CE Mark and FCC Class B.

N2Power is also committed to the implementation of the European RoHS Directive restricting the use of certain hazardous substances in electrical and electronic equipment.

N2Power's XL250 Series 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

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, Distributors and Original Equipment Manufacturers. Qualstar also designs, manufactures and sells ultra small, high efficiency open-frame switching power supplies under the "N2Power" brand name to OEMs. 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 LTO, SAIT and SDLT tape drives, whether the Company's initiatives to maintain and increase sales of its tape libraries based on 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 are 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, 2005, 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.