iQstor Networks Signs Master VAR Agreement with RAID Inc.

RAID Inc. to leverage intelligent SAN solutions from iQstor
for data and rich media applications

Newbury Park, CA - December 22, 2005 - iQstor Networks, Inc., a leading developer of intelligent and integrated Storage Area Network (SAN) solutions, announced today that it has signed RAID Incorporated, a leading manufacturer of custom storage solutions and managed storage services as its Master Value Added Reseller (VAR), to resell, service and support its full line of integrated SAN solutions in the Northeast, encompassing New England, New York and Pennsylvania.

iQstor’s integrated storage platforms deliver the high performance, extended functionality and reliability required by today’s demanding business applications, and combines enterprise-level features such as storage virtualization, snapshot, mirroring, remote replication, storage provisioning and automated capacity growth with fully redundant components, to deliver storage scalability, data protection, storage automation and management simplicity in a single scalable platform.

“RAID Inc. is the ideal partner to represent iQstor because of their solid reputation for being a market and technology savvy services provider and developer of customized storage solutions for a range of data and rich media applications,” said Jason Lo, President and CEO of iQstor Networks. “Our FC, SATA and iSCSI integrated storage platforms with embedded enterprise level data services capabilities will extend both our companies’ market reach into the enterprise and entertainment based storage markets.”

“The business and technology synergies between our two companies make for an ideal partnership and we are very pleased to represent iQstor in the Northeast,” added Greg Morris, CEO of RAID Inc. “iQstor’s vast portfolio of storage platforms with embedded data services will enhance and extend our ability to offer customized and fully integrated all-in-one storage solutions to a broad base of clients.”

About RAID Incorporated
Headquartered in Lawrence, MA, RAID Incorporated is a managed storage services provider (MSSP) and designs customized storage systems and solutions. RAID Incorporated's flagship service StorageWatch® is the industry’s only real-time monitoring and managed storage service. RAID specializes in solving compute, application, and disaster recovery needs with a unique platform combining hardware, software, and services. For more information on RAID Inc., visit the company’s web site at www.raidinc.com.

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 Fibre Channel, 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.

Press and Analyst Contact:
Albert Saraie
iQstor Networks, Inc.
Ph: 805-376-1010
Email: asaraie@iqstor.com

Curtis Chan
CHAN & ASSOCIATES, INC.
Ph: 714-447-4993
Email: cj_chan@chanandassoc.com