Qualstar Ships AIT-5 Equipped Tape Libraries

Business Wire, Dec 5, 2006

Capacities Over 620 Terabytes

Backward Read and Write Compatibility Across Two Generations

SIMI VALLEY, Calif. -- Qualstar([R]) Corporation (NASDAQ:QBAK), a manufacturer of automated tape storage solutions, today announced that it has begun shipping AIT-5 tape drives in all models of its widely regarded TLS-4000 Series tape libraries. Qualstar's TLS-4000 Series AIT libraries offer users a particularly broad range of capacity and performance options to economically and reliably automate tape-based applications, whether backing up a single critical database or as an integral part of an enterprise-wide data management system.

The latest member of the tape family introduced by Sony in 1996, AIT-5 drives deliver twice the capacity of the previous generation. Each AIT-5 tape holds 400 gigabytes of native data, or more than 1 terabyte using typical compression techniques, making it competitive with any other current tape technology. Since AIT-5 is backward read and write compatible with both AIT-3 and AIT-4 media, current Qualstar AIT library customers can double or quadruple their storage by simply installing the new drives and media.

TLS-4000 Series AIT-5 storage capacities range from 5.6 terabytes to more than 620 terabytes, using typical data compression techniques. Ten TLS-4000 models provide a broad range of cost-effective solutions, housing two to twelve AIT-5 tape drives and up to 600 tapes. All Qualstar AIT-5 libraries reflect the company's commitment to building Simply Reliable products that deliver solid technical and business benefits.

"We are committed to delivering superior value, performance and reliability for our customers," said William Gervais, Qualstar president and CEO. "Qualstar introduced the first AIT tape libraries over ten years ago. Any TLS-4000 library can be upgraded with the new AIT-5 drives, delivering real ROI that is unmatched by any other library manufacturer. Our AIT-5 based libraries are also well suited to satisfy new government rules requiring the retention of electronic records that went into effect on December 1, 2006."

All TLS-4000 Series libraries support Q-Link[TM], Qualstar's web browser-based remote library manager that enables users to manage, monitor and configure any unit from across the campus using their intranet, or from around the world via the Internet. Q-Link enables administrators to 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.

AIT-5 will also be shipping in Qualstar's RLS-Series rack optimized libraries by the end of December, 2006.

Qualstar automated tape storage products are available exclusively through the Company's worldwide network of authorized resellers.

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 authorized Value Added Resellers, Systems Integrators and 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, 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, 2006, 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.