Matrix-IPI to Leverage Intelligent SAN Solutions from iQstor – Expanding iQstor’s Presence in Middle-East and Eastern Europe

Newbury Park, CA — January 25, 2006 - iQstor Networks, Inc., a leading developer of intelligent and integrated Storage Area Network (SAN) solutions, announced today that it has signed a channel partnership agreement with Matrix Integrated Products, Inc., to sell, service and support its full line of integrated SAN solutions in Central and Eastern Europe, Middle East and North Africa (CEMA). This agreement allows Matrix-IPI to supply the market with feature rich and cost effective SAN solutions for the regional businesses and enterprises. It also provides Matrix-IPI 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 channels with a commitment to establishing a strong presence in the CEMA markets.

“The demand for feature-rich SAN solutions are driven by phenomenal growth in the amount of data being generated daily that needs to be stored and managed,” said Mehrdad Negahban, CEO & Chairman of Matrix-IPI. “Our partnership with iQstor allows us to deliver storage solutions with exceptional features, high performance and reduced storage management costs, which directly address the needs of the regional businesses.”

“Storage investments in the MEA (Middle East and Africa) region will continue to gather momentum in the coming years, as the amount of data that needs to be stored continues to grow at a strong pace,” says Philip Korinek, Senior Analyst, IDC CEMA. “Additionally, there is an increased emphasis on complete storage solutions in MEA including storage hardware, networking infrastructure and storage software.”

iQstor's fully integrated SAN solutions, include embedded enterprise-class data services features for storage consolidation, disaster recovery and business continuance. This integrated approach addresses the requirements of businesses and enterprises requiring high performance, scalability and continuous availability, providing ease-of-use while reducing TCO.

“CEMA as in other markets around the world is experiencing tremendous growth in storage demand. There is a very real need for intelligent storage systems with data services software that are easy to use and manage in this region. We believe that we have the right products, solutions and service capabilities to meet the market demand,” added Jason Lo, president and CEO of iQstor Networks. “We see Middle East as an important emerging market and together with Matrix-IPI, are deploying resources in the region to meet the very significant demand we are experiencing.”

About Matrix
Matrix is focused on delivering Broadband Multimedia and Security Solutions to Mobile and In-building users. Matrix provides “Total Solutions” by combining highly integrated mixed-signal communication systems and storage technology, integrated with user friendly Internet and wireless services and offers full technical support regionally. Matrix is headquartered in Southern California, USA with regional offices in Europe and Middle East.

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