Qualstar Introduces New RLS LTO Tape Libraries; New Models Incorporate LTO 2 Half-Height Drives for More Data Paths, Lower Cost.

SIMI VALLEY, Calif. -- Qualstar(R) Corporation (NASDAQ:QBAK), a manufacturer of automated tape storage solutions, today announced two new models of its highly regarded RLS-Series Rackmount Tape Library family, designed specifically to leverage the lower cost and smaller packaging of the latest LTO 2 half-height tape drives.

Many users want high capacity, but their systems can't deliver data fast enough to keep LTO 2 full-height tape drives streaming. The new Qualstar RLS-8216H, and RLS-8404H with capacity on demand (COD), utilize the new half-height (HH) LTO 2 drives, retaining high capacity-per-tape while delivering lower cost and enhanced connectivity for less powerful systems. LTO 2 HH technology offers the same 200 gigabytes-per-tape as the current full-height drives, but at a lower data rate.

The two new RLS models leverage the LTO 2 HH form factor to fit twice the number of drives in the same space. The RLS-8404H houses up to four LTO 2 HH tape drives, which doubles the number of simultaneous backup and restore operations within a single library. The RLS-8216H accepts two drives and sets a new low price point for a Qualstar Simply Reliable LTO tape library.

Like the RLS-8204 announced recently, the RLS-8404H features COD, which lowers the initial purchase price of the library while making future capacity expansion easy and economical. The RLS-8404H ships with 2.4 terabytes of native capacity. Up to four, 1.6 terabyte capacity expansion kits can be easily added by the user in a few minutes yielding a total native capacity of 8.8 terabytes, or over 17 terabytes using built-in data compression.

All RLS-Series models use only 5U (8.75 inches) of rack space, making them ideal choices for small and midsize companies faced with rapidly growing data retention and protection requirements and limited space.

"The new RLS-8216H and 8404H models continue Qualstar's tradition of delivering value to our customers. The new LTO 2 HH drives reduce cost while maintaining high capacity, a real win for end users faced with protecting compliance-driven data growth," said William Gervais, president and CEO of Qualstar. "Backing up to magnetic tape secured offline is still the most dependable way to isolate and protect data. In today's high risk environment physically removing media to protect the data from online attacks is a fundamental advantage offered by tape libraries that disk-based offerings cannot provide."

Both models also support Q-Link(TM), Qualstar's browser-based remote library manager that enables users to manage any unit from across the room using their intranet, or from around the world via the Internet. Q-Link lets administrators configure the library, monitor operations, control access and receive e-mail alerts using a built-in, policy-based event notification system. Q-Link provides significant savings by allowing companies to deploy enterprise-class storage to locations without on-site administration.

The RLS-8216H and RLS-8404H are sold and supported worldwide through selected, authorized Resellers. Shipments will begin in September.

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, 2004, 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.

Qualstar and the Qualstar logo are registered trademarks of Qualstar Corporation. LTO and Ultrium are registered trademarks of International Business Machines Corporation, Hewlett-Packard and Certance.