FOR IMMEDIATE RELEASE

iQstor Announces Expanded Channel Program
Bringing U.S. Resellers and Integrators Automated SAN Solutions
for Small to Mid-Sized Businesses

Partnering with iQstor, Resellers can Easily Create Best-of-Breed SAN Solutions
With Enterprise-Level Functionality for Small and Mid-Size Markets

Newbury Park, Calif. – April 22, 2003 – iQstor Networks, Inc., developer of integrated Fibre Channel Storage Area Network (SAN) solutions, announced the U.S. expansion of its worldwide channel partner program in advance of the company’s iQ1000 Storage System release. iQstor has recently signed master reseller agreements to resell, service and support their full line of integrated SAN solutions in the Asia Pacific market. The move by iQstor to extend their channel program to U.S. will bring resellers an automated SAN solution with enterprise-level features for small to mid-sized businesses (SMBs) at a cost-effective price point.

“The small and mid-size market segment is underserved by existing storage solutions, and to satisfy these SMB storage requirements we are partnering with experienced resellers that focus on this segment and share our vision of delivering storage solutions that simplify and optimize storage infrastructures,” Jason Lo, president and CEO, iQstor Networks, said. “iQstor brings integrated and automated storage solutions that deliver enterprise-level functionality – including storage virtualization, snapshot, mirroring, remote replication, and policy-based storage provisioning – at an attractive price, and the ability to easily deploy a cost-effective solution with these features is a compelling and very competitive tool for resellers in today’s market.”

The iQstor Channel Partner Program is designed for highly skilled storage VARs, system integrators, and selected resellers with vertical market expertise in providing storage networking and computing solutions to small and mid-sized businesses. iQstor’s program is comprised of sales and implementation tools to support a fast start for partners’ marketing, sales and technical support initiatives; the channel program includes a wide range of benefits including:

• Discounts on iQstor’s storage solutions
• Pre-sales systems engineering support
• Post-sales technical support
• Technical certification and product training
• Marketing and product collateral materials
• Demonstration and evaluation unit programs
• Channel sales and marketing team support

To find out more about iQstor’s domestic channel partnership, contact David Tweed, vice president of sales, via e-mail at dtweed@iqstor.com or by phone at 805-376-1010.

About iQstor SAN Technology

iQstor has embedded storage management and data services into the storage processors, allowing their SAN solutions to reduce the workload of storage administrators at small and mid-size enterprises and optimize their storage resources, increasing productivity and reducing operating costs. iQstor is committed to making enterprise level data services features affordable for the small and mid-size market, enabling storage administrators to benefit from greater ease of integration and improved cost-efficiencies as they manage their storage growth requirements.

About iQstor Networks, Inc.

A privately held company, Newbury Park, CA-based iQstor launched in January 2002. The company's core management team possesses more than 50+ collective years storage industry expertise in engineering, product development, global management and marketing. The iQstor vision is to embed expertise into the storage subsystem that significantly reduces the workload of storage administrators in small and mid-size environments. These automated tools can manage ever-increasing amounts of data as well as the different storage policies that each company maintains. The ultimate goal is storage that is intuitive to use and scales without disruption. For more information on iQstor, visit the company's web site at www.iqstor.com.