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nStor Inks Reseller Agreement with Datacore Software

Value-Added Offering Provides Greater Storage Expansion and Data Protection

San Diego – March 22, 2004 – nStor Corporation, Inc., a subsidiary of nStor Technologies, Inc. (AMEX:NSO) and the innovator of high-performance networked storage platforms, today announced the signing of a value-added reseller agreement with Datacore Software, a leading independent software vendor specializing in storage control, management and consolidation. Under the terms of the agreement, nStor will sell Datacore’s SANmelody™ software along with its current suite of product offerings.

The value-added offerings provide a broad choice of storage expansion and data protection requirements, ranging from inexpensive entry-level iSCSI/Ethernet LAN disk servers to very large full-featured Fibre Channel platforms. The solution will provide greater storage expansion and data protection capabilities for small-to-medium businesses and departments of large corporations. This simple solution eliminates the need to commission extra application servers when the existing systems have no more room to add disks.

The Datacore software offerings and nStor storage solutions are designed to reduce the cost and complexity of supporting data-intensive applications while easing storage management challenges.

About Datacore Software

DataCore Software fundamentally changes the economics of managing storage with innovative software that combines advanced functions and services with the agility and savings of hardware independence. The company's award-winning SANsymphony and new low-cost SANmelody disk sever software products provide unprecedented purchasing flexibility and future-proofing by empowering customers to fulfill portability and price/performance requirements across a broad choice of systems and devices. Small to Medium Enterprises, Global 2000 data centers and OEM storage subsystems rely on this comprehensive product portfolio to deploy disk servers, to easily add capacity expansion and to centralize and automate storage management for Windows, UNIX, Linux, MacOS and NetWare systems. DataCore is privately held with corporate headquarters in Ft. Lauderdale, Florida. For international office locations and more information, call (877) 780-5111 or visit www.datacore.com.

About nStor Corporation, Inc.

Headquartered in Carlsbad, Calif., nStor is a wholly owned subsidiary of nStor Technologies, Inc. (AMEX: NSO) and developer of data storage solutions that are ideally suited for both large enterprises as well as small to mid-sized businesses. The Company's flagship controller technology and StorView software form the foundation for the NexStor and OneStor family of turnkey solutions that support today's leading operating environments. Designed for storage-intensive environments and mission-critical applications, nStor's products are offered in various architectures including Fibre Channel, SAS, SCSI and SATA and are focused on addressing customers' business needs and applications. The Company markets its storage solutions through a global network of OEM partners and solutions integrators.