Qualstar Releases The New N2Power XR Series In Two Power Offerings - 125 & 160 Watt

Qualstar Corporation (NASDAQ:QBAK) announced today that its N2Power Division, an industry leader in the design and manufacturing of compact and highly-efficient power supplies, has expanded its AC-DC offerings by adding two (2) new series - XR125 & XR160. These products are an updated design of their original 3"x5" XL Series (125 & 160 watts).

N2Power's introduction of the XR125 & XR160 Original and RE (remote enable) Series demonstrates our continued commitment to give OEM engineers robust, high-quality, state-of-the-art designs. The XR-Original series is designed to be a drop-in replacement of our current XL series products. The XR-RE series provides the ability to use the new add-on 5Vsb output for remote enable functionality. All models offer special features such as current sharing, redundancy, and de-rating for convection cooling operations. The XR power supplies provide high-efficiency and increased power density, withstand up to 2G vibrations and have a 3-year standard warranty.

The XR Series constitutes over 80 different combinations of connector and output voltages ranging from 12V to 56V in single output combinations. These supplies are ideal for power-hungry broadcast, storage and networking products with additional application solutions for industrial, gaming and instrumentation markets.

Certifications for the XR125 & XR160 series include CE, UL/cUL; IEC 69050-1 (2nd Edition) am1, am2; EN 60950-1:2006 /A11:2009 /A1:2010 /A12:2011/ A2:2013; UL 60950-1 (2nd Edition) and RoHS II.

"We believe the addition of the 3"x5" - XR125 & XR160 series to our product portfolio will allow engineers to utilize our power supply design features and not require OEM board design changes, which should allow the OEM engineering team to reclaim more product space without giving up efficient and dependable power," said Randy Johnson, N2Power's Director of Sales. "The XR series release demonstrates the execution of our strategy to expand product offerings. This series offers additional AC-DC power centric solutions to our distribution partners and OEM customers." Mr. Johnson continued, "In addition to offering standard models, N2Power intends to continue its strategy in working with our OEM partners in providing them with special modifications to our power products to fit their power requirements. Offering such flexibility and engineering capabilities gives N2Power a distinct advantage over many other manufacturers of power solutions."

Orders for the XR Series are being accepted immediately. Call Veronica Dominguez at 805-583-7744 x122 for pricing. Free samples will be available January, 2017 from N2Power's extensive distribution network. Check our website www.n2power.com for authorized distribution partners.

About Qualstar Corporation

Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies. Qualstar is a leading provider of high efficiency and high density power supplies marketed under the N2Power™ brand, and of data storage systems marketed under the Qualstar™ brand. Our N2Power power supply products provide compact and efficient power conversion for a wide variety of industries and applications including, but not limited to, telecom, networking, broadcast, industrial, lighting, gaming and test equipment. Our Qualstar data storage products are used to provide highly scalable and reliable solutions to store and retrieve very large quantities of electronic data. Qualstar's products are known throughout the world for high quality and Simply Reliable™ designs that provide years of trouble-free service. More information is available at www.qualstar.com or www.n2power.com or by phone at 805-583-7744. Connect with Qualstar on LinkedIn or Twitter.

Cautionary Statement Concerning Forward-Looking Statements

Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. These forward-looking statements are based upon the current expectations and beliefs of Qualstar's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The information contained in this press release is as of the date of this press release. Notwithstanding changes that may occur with respect to matters relating to any forward-looking statements, Qualstar does not expect to, and disclaims any obligation to, publicly update any forward-looking statements whether as a result of new information, future events or otherwise. Qualstar, however, reserves the right to update such statements or any portion thereof at any time for any reason. In particular, the following factors, among others, could cause actual or future results to differ materially from those suggested by the forward-looking statements: Qualstar's ability to successfully execute on its strategic plan and meet its long-term financial goals; Qualstar's ability to successfully implement and recognize cost savings; Qualstar's ability to develop and commercialize new products; industry and customer adoption and acceptance of Qualstar's new products; Qualstar's ability to increase sales of its products; the rescheduling or cancellation of customer orders; unexpected shortages of critical components; unexpected product design or quality problems; adverse changes in market demand for Qualstar's products; increased competition and pricing pressure on Qualstar's products; and the risks related to actions of activist shareholders, including the amount of related costs.

For further information on these and other cautionary statements, please refer to the risk factors discussed in Qualstar's filings with the U.S. Securities and Exchange Commission including, but not limited to, Qualstar's Transition Report on Form 10-KT for the transition period July 1, 2015 to December 31, 2015, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of such Form 10-KT, and any subsequently filed reports. All of Qualstar's filings are available without charge through the SEC's website ( www.sec.gov ) or from Qualstar's website ( www.qualstar.com ).

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