Additional information:Software Generation, Ltd is a privately held archive management software company headquartered in Fareham, England. SGL has been in business since 1989 and the company has over 4,500 instances of its flagship FlashNet product running around the world. More information can be found at www.sglbroadcast.com. Qualstar Corporation - Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies. Qualstar is a leading provider of LTO based data storage products that 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. Forward-Looking Statements This press release contains forward-looking statements relating to expectations, plans or prospects for Qualstar Corporation and its partnership with SGL that 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. 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 with respect to the partnership with SGL; the ability of Qualstar and SGL to realize any benefits from such integration, including any technical, operational and economic advantages; Qualstar's ability to develop and commercialize new products with SGL; industry and customer adoption and acceptance of such new products; unexpected product design or quality problems; adverse changes in market demand for such new products; and the other risks and important factors contained and identified in Qualstar's filings with the Securities and Exchange Commission. The forward-looking statements included in this press release are made only as of the date hereof. Qualstar does not undertake any obligation to update the forward-looking statements to reflect subsequent events or circumstances.