iQstor Gains Significant Traction as SME Demand for
Network Storage Grows

Company Growth Mirrors Analyst Predictions as SME-Focused Product Line and Strategic Partnerships Accelerate iQstor Unit Shipment

NEWBURY PARK, California - October 17, 2006 - iQstor Networks, Inc., a leading developer of intelligent and integrated Storage Area Networks (SAN) solutions for small and medium enterprises (SME), today announced increased worldwide adoption of its integrated enterprise-level storage systems. Company growth continues to accelerate with the unit shipment numbers increasing 300 percent from the same time in 2005. iQstor attributes this growth to its complete, full featured and high performance storage systems that include enterprise-class storage services software at SME market pricing.

IDC predicts that network storage will become a $5.7 billion market opportunity in the SME space by 2010. Disk-based backup, tiered storage, greater IT resource utilization, flexibility and the ability to scale and meet business requirements have been the driving factors for SMEs in a variety of vertical markets that include education, healthcare, on-line transaction processing, manufacturing and transportation industries.

“The intelligent storage system from iQstor gives us faster and more reliable data protection, while meeting our growth goals as data demands increase,” said Ed Williams, Chief Technology Officer, American Web Services. “As a result, we can now provide quick access and permit the transfer of high volumes of data to our hosted service customers on demand as needed, giving us a competitive edge in the market.”

SME-Designed Storage

iQstor’s affordable storage systems with integrated software services for applications such as disaster recovery, business continuance and storage virtualization have made storage more efficient and useful for the SMEs to support business-critical IT operations. Workload project expansion; the ability to process and analyze data quickly; improving application availability; enhancing business continuance; improving application availability, synchronizing data and continuously monitoring storage consumption are additional concerns for companies worldwide that iQstor addresses with the industry’s highest value line of storage systems for the SME market.

“Our backup process using tape was taking too long each day,” said Jim Thornton, Network Services Administrator, Varsity Gold, Inc. “We needed to decrease our backup window and we had to do something that didn’t tie us down. We wanted a product that could not only take frequent snapshots of our data but had intelligent applications that we could scale and grow with without needing a forklift upgrade and iQstor fit that bill.”

SMEs Demand Feature-Rich Storage that is Easy-to-Use

Storage demand is growing as customers move to more advanced storage features that meet the performance, ease-of-use and affordability needs of small and medium businesses. Customers have a broader range of storage options to choose from and are demanding access to suppliers that can not only provide a range of products that are scalable and grow with their needs but can also provide a technology backbone that is flexible, and feature-rich.

“With iQstor, we are able to offer a higher level of service to our students and faculty. Their systems have enabled us to deliver network efficiencies beyond our initial assessments, increasing storage utilization to drive down the cost of administering data and enabling faster access to student records,” said Sam Young, Director of Information Technology for La Sierra University. “With the product’s simple-to-grow architecture, we are able to provide high levels of data service since iQstor allows seamless growth of our operations to support our expanding student population.”

iQstor’s storage systems are ideal for small to mid-sized companies implementing an entry-level storage network or migrating from Direct Attached Storage (DAS) to networked storage, providing ease-of-use while offering enterprise-class features and functionality. iQstor successfully combines the benefits of Ethernet networks with networked storage, delivering all the benefits of a SAN at an affordable price, together with integrated data services features such as storage virtualization, snapshot, mirroring, remote replication, policy based storage provisioning, capacity growth, SAN management and remote support.

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 FC, iSCSI and SATA intelligent storage systems and expansion enclosures, 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.