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Overland and Compaq Continue a Seven-Year Relationship

Overland Data, Inc., a technology leader in tape backup products, today announced that it has once again been selected by Compaq Computer Corporation (NYSE: CPQ), a worldwide leader in storage solutions, as an OEM supplier for its mid-range tape library based on the reliable DLT8000 technology to support Compaq storage solutions.

Overland’s DLT LibraryXpress, the backbone for Compaq Storageworks TL891DLX tape library, is setting a new standard in expandable, modular DLTtape libraries. It is available with either one or two 40/80 GB DLT tape drives and 10 cartridge slots, providing an automated native storage capacity of up to 400 GB. The system can be scaled up to six modules for a maximum configuration of 2 TB native backup capacity (up to 4 TB compressed) and backup performance of up to 216 GB/hour (native), for a range of customised solutions to match specific storage needs.

According to Scott McClendon, Overland President and CEO, "We value the continued, long-standing relationship with Compaq, a clear leader in the storage marketplace. The TL891DLX library product addition keeps Compaq squarely in the forefront of providing the "best of breed" in mid-range automated tape technologies. Our relationship with Compaq has been a winning combination and we look forward to expanding it even further as new technologies emerge."

"The TL891 successfully addresses the backup requirements of Compaq customers in the corporate server space and the TL891DLX tape library enhances our offering for this segment with higher capacity and performance for Compaq

About Overland

Overland Data, Inc. (NASDAQ: OVRL) is a global supplier of innovative data storage and storage automation solutions for computer networks. The Company’s award-winning DLT LibraryXpress SmartScale Storage® architecture has set the standard for intelligent automated storage and scalability and established Overland as a leader in the mid-range tape storage market. Today, Overland is broadening its product line and technology offerings to address additional segments of the storage market, including the entry-level small-business market, as well as the higher-end enterprise environment. Overland's patented Variable Rate Randomizer (VR2) data encoding technology, capable of substantially increasing the capacity and throughput of linear tape formats, is being applied by the Company to its entry-level tape drive offerings. It has also been licensed to Imation Corp., Seagate Technology, StorageTek and Tandberg Data. Overland products, acclaimed for their quality and reliability, are sold worldwide through leading OEMs, including Compaq, Fujitsu Siemens Computers, Groupe Bull, IBM and NCR commercial distributors such as Bell Microproducts, Ingram Micro and Tech Data Corp., as well as storage integrators and value-added resellers.

Contact: Howard Rippiner

Overland Data (Europe) Ltd.

+44 (0)1189 898022

Paul Shlackman/Alex Murphy

Strategic Alliance International

+44 (0)1494 434434

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