NEC Signs OEM Agreement with nStor Technologies; Japanese Computer Giant First to Standardize on nStor's 12-Drive, 2U Storage System.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--June 21, 2001

nStor Technologies (AMEX:NSO), a leader in the data storage marketplace, today announced an OEM agreement with NEC Corporation (Nasdaq:NIPNY). NEC has selected the NexStor storage systems for use with product offerings it will be announcing later this year. These NEC branded products will be based on the NexStor 1202F and 3250F, and customized to NEC specifications. nStor has already delivered the NexStor 1202F, the world's first 2U, 12-drive Fibre Channel storage solution, to NEC. The system is capable of storing up to 876GB of data in only 3.5" (2U) of rack space when utilizing 73GB drives. The NexStor 3250F is an active/active RAID version of this storage system.

"NEC wanted a state-of-the-art storage solution to match the capabilities of our new products," stated Mr. Koji Iguchi, Department Manager for NEC's Workstation and Server Division. "In our market, space is very much at a premium. The 2U form factor gives us the ability to store 60% more storage in the same rack space as our competition, giving us a strong competitive edge."

"This is an important new OEM customer for nStor, further demonstrating the success of our product in this market," said Jim Habuda, Vice President of Worldwide OEM and Indirect Sales, nStor Technologies. "NEC is the dominant computer systems supplier in Japan, owning in excess of a 30% market share. When production shipments start later this year, this relationship will represent significant new revenues for nStor, and it marks the beginning of a mutually rewarding relationship with NEC. Shipments of the 1202F have already begun for integration into new NEC products that will be announced later this year."

Mr. Shigeru Oshima, Senior Manager of File System Marketing for the Workstation and Server Division, added, "We conducted extensive comparative testing involving a variety of storage systems. nStor's successful implementation of 12-drive support in this form factor, combined with the robust performance of the unit, were important considerations in our decision to work with nStor."

"We have worked closely with NEC for several months as they tested and worked with the NexStor 1202F in their labs," said Guy Carbonneau, Vice President Hardware Engineering, nStor Technologies. "Their detailed and thorough test methodology, especially in direct comparison to top-of-the-line products from other vendors, validates the strength of our product design and gives our technology a very strong endorsement."

About the NexStor 1202F and NexStor 3250

The NexStor 1202F and the NexStor 3250 utilize the same 19" rack mount enclosure that supports up to 12 one-inch Fibre Channel disk drives in only 3.5" of vertical space, making it the most densely packed storage system on the market. The rack-mountable enclosure, with a customizable front panel, has been engineered to provide the maximum level of reliable fault tolerance and performance. The built-in hot swappable loop resiliency circuit (LRC) cards eliminate signal degradation that can result in unreliable Fibre Channel loop operation when an enclosure simply relies on disk drives to re-time the signal. This technology provides extremely reliable high performance over the Fibre Channel interface and acts as an active hub for connecting cabinets. The integrated SES-compliance card assures easy monitoring of all integrated Fibre Channel components as well as the overall storage enclosure environment. Other features include dual power cords, as well as hot-swappable drives, fans and power supplies.

Design considerations such as thermal issues, rotational vibration and power requirements were addressed in accomplishing the difficult task of packing more storage into such a small space. Using a unique patent pending design approach, the NexStor 1202F and NexStor 3250 not only cleared these design hurdles, but also allowed for increased support for next generation drive technology running up to 15,000 RPM.

The NexStor 3250 utilizes the same 2U enclosure as the NexStor 1202F, but also incorporates two powerful, active/active Fibre Channel RAID controllers designed to provide excellent throughput performance and superior fault-tolerance and fail over capabilities, ensuring continual data accessibility. For multi-terabyte configurations, NexStor 1202F expansion units can be added to increase the NexStor 3250's storage capacity.

About NEC

NEC, recognized as a worldwide leader in high technology, is one of the few companies capable of offering a full spectrum of products and systems in semiconductors, electron devices, communications, computer peripherals, imaging, and computers.

NEC is poised to play a vital role in the multimedia age, providing solutions through enhanced C&C (the integration of computers and communications) products and services. Our goal is to link the world and transform it into a cooperative global village. NEC continues to explore frontiers for core C&C technologies that will advance societies worldwide toward deepened mutual understanding and fulfill human potential. This vision continues to guide us toward the 21st century and far into the future.

About nStor Technologies

Headquartered in San Diego, California, nStor Technologies is a leading provider of highly integrated, enterprise-class storage solutions for computing operations that include Windows NT, Windows 2000, Unix and Linux platforms. Designed for storage-intensive environments and mission-critical applications, the NexStor 3000 product family features a unique, patent-pending design that offers the highest storage density in the industry, packing 584GB into 3.5" (2U) of space. The NexStor 3150/3250 SAN-ready RAID solutions are available with Fibre Channel, SCSI or Fibre-SCSI connectivity. nStor also manufactures the robust AdminiStor storage management software suite and complements its product offerings with a full spectrum of tape backup solutions. nStor trades on the American Stock Exchange under the symbol NSO and markets its products through a direct sales force and a global network of reseller and OEM partners. Additional information about nStor can be found by visiting the company's web site at www.nstor.com.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimated," "project," "expect," "anticipate," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party, vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. nStor is a registered trademark of nStor Technologies, Inc.