FOR IMMEDIATE RELEASE

iQstor Signs Reseller Agreement with
Digital Technologies Corporation (DTC)

DTC to offer integrated SAN solutions from iQstor
extending iQstor’s presence into Japan

Newbury Park, CA – August 20, 2003 – iQstor Networks, Inc.™, developer of integrated Fibre Channel Storage Area Network (SAN) solutions, announced that it has signed a reseller agreement with Digital Technologies Corporation (DTC) a leading server and storage system integrator, to sell, service and support its full line of integrated SAN solutions in Japan. This agreement provides DTC with enterprise level features in a cost effective SAN solution for the regional small to mid-sized enterprises. It also provides DTC access to iQstor’s partner program, which includes training, support, configuration tools and other incentives.

Deployment of cost effective storage solutions that address ease-of-use, storage consolidation and business continuance while maintaining data access with policy based management features is a high priority for IT administrators. With an iQ1000 Storage System, customers can manage and protect their business-critical data while ensuring data integrity and availability.

“Digital Technologies evaluated iQstor’s iQ1000 storage system prior to inclusion in our storage solution portfolio and found it to be a reliable full featured SAN solution with built-in policy based management capabilities”, said Indy Sakiyama, president of Digital Technologies Corporation. “The iQ1000 and its integrated data services storage management software features allow us to provide enterprise-level data services features such as storage virtualization, snapshot, mirroring, remote replication, and policy based storage provisioning to our customers.”

The iQ1000 Storage System is a highly available fully redundant 2Gb Fibre Channel SAN Solution. It contains dual hot swappable components such as power supplies and cooling modules in a 3U chassis offering 2.2TB capacity using 146GB FC disk drives. The iQ1000 also features dual active SP100 storage processors supporting RAID 0, 1, 3, 5, 1+0 with transparent fail-over support to further increase availability. The embedded storage management and data services software offer enterprise level functionality at prices that are affordable by small and medium-sized enterprises.

“We know there is a tremendous opportunity for network storage in Japan where DTC has the market presence and storage expertise to successfully offer the iQ1000 Storage System, and we are very pleased to partner with them," said Jason Lo, president and CEO of iQstor Networks. “iQstor’s integrated SAN solutions together with DTC’s team of experienced storage consultants and sales professionals will position DTC to address the storage needs of their customers and further penetrate the Japanese storage market.”

About iQstor Networks, Inc.

A privately held company based in Newbury Park, CA, iQstor is a leader in the innovative design and delivery of integrated storage solutions with 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.

About Digital Technologies Corporation

Digital Technologies Corporation provides total system solutions centered around Unix server-client systems with network and storage backup. DTC gathers the latest products and information through its U.S. subsidiary, Digital Technologies Marketing Corporation, to offer the best possible computer and networking systems and solutions to its customers. DTC provides leading technology computer systems solutions for highly competitive R&D environments in various manufacturing and scientific laboratories.