OnStream Announces New 70GB ADR70 Drive For Server Backup.

LONGMONT, Colo.--(BUSINESS WIRE)--June 1, 1999--

ADR(tm) Technology Delivers Unique Blend of

Capacity, Performance, Reliability and Price

to the 70GB-Class of Server Backup Solutions

Ready to meet the storage requirements of small businesses, corporate departmental and workgroup servers, OnStream(tm) today announced its ADR(tm)70 Digital Tape Drive, offering 70 gigabytes(a) of capacity, speeds of up to 4MB/sec(a) and multi-platform support for server backup.

At a cost of only $999 for the drive, less than $1 per gigabyte for the media and read/write compatibility with 30GB, 50GB and 70GB ADR(tm) cartridges, customers benefit from a built-in migration path as their server needs grow. The ADR70 will be unveiled at PC Expo, June 22-24, in New York in booth no. 1704.

Expected to ship this fall, the ADR70 is the newest drive from OnStream and will support operating system platforms such as Windows NT, Novell Netware, Linux, UNIX and others. Newly-added ALDC (adaptive lossless data compression) hardware compression delivers maximum transfer rates of up to 4MB/sec. The Wide Ultra2-compatible SCSI-3 interface integrates LVD (Low Voltage Differential) technology to assure greater signal integrity for faster and more reliable data transfers.

"IT managers have asked for large backup capacity, diverse platform support and superior performance in a reliable solution that doesn't cost as much as the server itself," said Jim Jonez, director, product marketing, OnStream. "By offering this new 70GB drive for less than $1,000, OnStream answers that need with the best price, capacity and performance mix for the workgroup server market. This means IT professionals no longer have to compromise."

The new ADR70 is powered by the company's patented Advanced Digital Recording (ADR) technology, which delivers an unprecedented blend of data reliability, capacity, performance and affordability. Reliability features include 1) an advanced servo system that assures media integrity while writing and keeps the head from wandering off-track and 2) spatially distributed error correction code (ECC) that greatly increases the chances for data recovery. Performance features include continuously variable speeds that allow the drive to adjust to the constantly changing data rate from the system.

OnStream makes backup easy and flexible. With its ability to read and write 30GB, 50GB and 70GB ADR cartridges, the ADR70 drive comes with a built-in growth path to adapt to the ever-increasing storage needs in today's network backup environments. Customers can now optimally match media capacity with varying backup needs.

OnStream's software partners include Computer Associates International(tm), Inc. and Seagate Software(tm), with leading backup applications ARCserve(R)IT(tm) and Backup Exec(tm). OnStream will be working with these and other companies to provide software support for Windows NT, Novell Netware, Linux and UNIX.

"Resellers are raving about OnStream's initial product introduction and are already returning to us for follow-on orders in the two months since the products were launched," said Michael Schwab, director, D&H Distributing. "The ADR70 is a great example of the scalability of ADR technology, going from their 30GB products to the 70GB product and beyond. ADR is poised to put OnStream in the 8MM/DLT category as an attractive workgroup/departmental server solution."

Pricing and Availability

The OnStream ADR70 internal drive is expected to ship in the fall of 1999 at an estimated street price of $999(US). Availability of external drives will follow shortly thereafter.

Seventy gigabyte media will sell for $69.95 per cartridge, fifty gigabyte media for $49.95 and thirty gigabyte media for $39.95.

OnStream products are sold throughout the United States, Canada and Europe through leading distribution, retail and catalog companies.

About OnStream

OnStream, Inc. was incorporated in 1998 to deliver affordable, high capacity removable storage solutions for servers, workstations and power desktops. The privately held, Colorado-based company is a spin-off from Philips Electronics of The Netherlands. Philips holds significant equity in the new company. Powered by its patented ADR technology, OnStream's products offer up to 70 gigabytes of capacity and target the growing need for solutions that can deliver the right blend of capacity, performance, reliability, and convenience -- all at prices that make sense for today's power desktop and workgroup server computer customers. For more information visit OnStream at www.onstream.com.

(a) Where 1GB = 1 billion bytes. All capacities and transfer rates

mentioned assume 2:1 compression. Capacity and performance will

vary with file types and system configuration.

OnStream, ADR, the OnStream logo, and ADR logo are trademarks of OnStream, Inc. All other trademarks are properties of their respective companies.