FOR IMMEDIATE RELEASE

iQstor Signs Reseller Agreement with eXacube Systems Inc.

eXacube offers integrated SAN solutions from iQstor
extending iQstor's presence into Korea

Newbury Park, CA - January 7, 2004 - iQstor Networks, Inc. developer of Storage Area Network (SAN) solutions with embedded storage management software, announced that it has signed a reseller agreement with eXacube Systems, Inc., to sell, service and support its full line of integrated SAN solutions in Korea. This agreement allows eXacube to supply the Korean market with feature rich and cost effective SAN solutions for the regional small to mid-sized businesses and enterprises. It also provides eXacube access to iQstor 's partner program, which includes training, support, configuration tools and other incentives.

Responding to increasing customer demand for cost effective enterprise-class storage solutions, iQstor is aggressively expanding its worldwide distribution channel with a commitment to establishing a strong presence in Asia-Pacific.

"Utilizing cost effective storage solutions that address ease-of-use, storage consolidation, disaster recovery and business continuance is a high priority for our customers", said Byung-Seok Park president of eXacube Systems. "The iQ1000 and its embedded data services storage management software allow us to provide enterprise-class features such as storage virtualization, snapshot, mirroring, remote replication, capacity management and policy based storage provisioning at affordable prices to our market. eXacube's customers will now be able to easily manage and protect their business-critical data while ensuring data integrity and availability."

"eXacube has built a solid reputation in addressing the storage needs of the customers in our key target markets including education, government and financial services", said Jason Lo, president and CEO of iQstor Networks. "We are very pleased with our relationship with eXacube to establish a presence in Korea and look forward to offering innovative enterprise-class storage management solutions in this rapidly growing market."

iQstor's fully integrated networked storage solutions, include embedded storage management features for storage consolidation, disaster recovery, business continuance and data migration. This integrated approach addresses the needs of the small and mid-sized businesses and enterprises (SMB/SME), providing enterprise-class feature/functionality while offering the necessary TCO.

About eXacube Systems, Inc.
eXacube is a privately held company based in South Korea and is a leader in the storage hardware and software with SATA, SCSI and Fibre Channel based solutions. Its storage solutions include the eCrux series (SCSI), vCrux series (Fibre Channel) and eCloid series (SATA). For more information on eXacube, visit the company's web site at www.exacube.co.kr .

About iQstor Networks, Inc.
A privately held company based in Newbury Park , CA , iQstor is a leader in the innovative design and delivery of storage solutions with embedded enterprise level functionality to channel partners worldwide. Its storage solutions include the iQ1000 Storage System, policy based storage management, data services software, professional services, support and training. For more information on iQstor, visit the company's web site at www.iqstor.com .