New Memory Expansion Module Expands XLS Market Reach, Providing Additional Configuration Options

SIMI VALLEY, Calif.--(BUSINESS WIRE)--June 14, 2007--Qualstar(R) Corporation (Nasdaq:QBAK), an innovator in automated tape storage solutions, today announced the XLS-85000 Memory Expansion Module (MEM), providing additional storage options for its successful XLS Enterprise Library System. Shipments of the new MEM will begin in September.

The XLS-85000 delivers 535 tape storage slots in just 5.3 square feet. Using LTO 4 tape technology with typical compression, the new MEM holds 856 terabytes, one of the highest storage densities in the industry. One or two of the new MEMs can be added to each XLS-820500 or XLS-832700 Library System. The new MEM can be intermixed with the XLS-89000 MEM which holds 1,075 tapes to provide granular storage solutions to meet a broad range of data protection and archival storage requirements.

"The new XLS-85000 gives users more choices to take advantage of the benefits that we designed into our new XLS family with patented Compass Architecture(TM)," said William Gervais, Qualstar president and CEO. "Easy expansion and greater flexibility means that XLS delivers real value to customers needing enterprise features without enterprise costs."

Qualstar's XLS Enterprise Library System is the tape library that you can't outgrow. Cost-effective configurations begin at 300 tape storage slots with four LTO 3 or LTO 4 drives, and scale in easy increments to over 6,000 slots and up to 96 drives. Adding capacity or drives is readily accomplished with minimal interruption to on-going operations.

The XLS-85000 will be available exclusively through Qualstar's worldwide network of Authorized Reseller Partners. Contact Qualstar, one of Qualstar's Reseller Partners or visit http://www.qualstar.com/xls for more information.

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 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; 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 other Qualstar 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.

Qualstar and the Qualstar logo are registered trademarks, and Compass Architecture and X-Link are trademarks of Qualstar Corporation. Other trademarks are the property of their respective owners.

CONTACT: Qualstar
Bob Covey, 805-583-7744
covey@qualstar.com

SOURCE: Qualstar Corporation