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nStor Signs Strategic Technology Partnership with InoStor for Advanced Data Protection

Patented Technology Maintains Data Integrity, Bolstering High Availability Storage Solutions

Carlsbad, CA., November 30, 2004 -- nStor Corporation, a wholly-owned subsidiary of nStor Technologies, Inc., (AMEX: NSO) and InoStor Corporation, a Tandberg Data Company, today announced a strategic technology partnership to incorporate InoStor's advanced data protection capabilities into nStor's storage solutions. As part of the partnership, nStor will initially embed InoStor's patented RAID n technology into its NexStor ® 4700S SATA series to deliver economical yet powerful data availability, reliability and capacity for meeting the growing requirements of storage-intensive applications.

With InoStor's innovative RAID n technology, nStor can provide enterprise-class functionality, including high-density, multi-drive protection and built-in scalability more affordably and much easier than typical high-end RAID systems. The addition of nStor's StorView storage management software streamlines deployment and management of the integrated storage platform.

As the market for disk drives explodes there is increasing demand to provide an added level of protection to ensuring the data is continuously available. As drive capacities grow, so does the time required to rebuild the data and restore data protection. This expands the window of vulnerability where critical data is at risk during the rebuild process. RAID n significantly reduces this vulnerability by maintaining data integrity.

According to Lisa Hart, nStor's executive vice president of marketing and alliances, InoStor's patented RAID n technology complements nStor's NexStor 4700 SATA family to bring cost-effective, continuous data protection and advanced storage management to small-to-medium-sized businesses. “Together, nStor and InoStor are lowering both technology and cost barriers by enabling companies of all sizes to benefit from sophisticated high-availability features without sacrificing ease of use or flexibility,” she said. “We are extremely pleased to leverage our collective strengths and offer a full-featured, economical storage solution that meets a wide variety of business demands.”

nStor's NexStor systems currently are deployed across a broad spectrum of video, investment banking, healthcare and defense applications. Introduced in October 2004, InoStor's RAID n is a software library with a set of patented algorithms that efficiently implement a parity scheme across an array of disk drives to protect the most rigorous data environments against random, multiple drive failures.

“The market imperative for multi-drive redundancy is apparent with vendors scrambling to provide so-called RAID 6 two-drive protection,” said David Licosati, InoStor's vice president of business development. “RAID n goes well beyond RAID 6 providing not only efficient two-drive protection but multi-drive protection against data loss for two, three or more drives. nStor's NextStor 4700 SATA family has the feature functions set that positions it as an industry leader.”

About InoStor

InoStor Corporation, a Tandberg Data Company, is a network storage technologies company. Its innovative products include network attached storage (NAS) appliances, tape-based automation, plus tape drive and media solutions. The Company's patented RAID n (TM) technology, available in InoStor's NAS devices and also available to licensees, delivers new standards of reliability and performance at an affordable cost. InoStor is also the exclusive Western Hemisphere supplier of the highly reliable line of Tandberg Data automation solutions, tape drives and media including SLR™, DLTtape™ and LTO technologies. InoStor's corporate headquarters are located at 13000 Gregg Street, Poway, Calif. 92064. For more information call (858) 726-1800 or visit www.inostor.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.