Joint Certification Program Provides High Availability Clustering Solutions to Address the Data Complexity of Today's Small to Medium Businesses

Carlsbad, Calif. and Beaverton, Or. — August 18, 2005 — nStor Corporation, a subsidiary of nStor Technologies, Inc. (AMEX: NSO) and an innovative developer of storage-network solutions, today announced that it has completed certification testing with PolyServe, a leading provider of clustering software for enabling utility computing on Linux and Microsoft Windows®. The testing ensures interoperability between PolyServe Matrix Server™ shared data clustering software and nStor's SATA based NexStor® solutions.

The resulting solution utilizes PolyServe software and the NexStor 4700 Serial ATA (SATA) system to produce easy-to-use and reliable clustering solutions. This certification better enables customers to achieve a highly available clustered network environment, while also providing a high level of management and protection for data-intensive networks.

PolyServe solutions are developed around two broad application areas: database server consolidation and scalable file services. Through the power of shared data, PolyServe solutions allow companies to reap the benefits of an always-on, modularly scalable utility-based infrastructure. These solutions leverage the company's expertise in enterprise-level software and bring those features and functionality to small and medium businesses (SMBs). Combined with the reliability, ease-of-use and flexibility of nStor SATA solutions, PolyServe clustering software enables customers to use nStor SATA based solutions to aggregate performance, simplify management and unify disparate storage systems. Administrators now have an easy, cost-effective way to create and attach multiple applications and servers to their existing infrastructure, while enjoying seamless management.

PolyServe Matrix Server software enables multiple Windows or Linux-based servers to function as a single, easy-to-use, highly available system. It is composed of high availability services that increase system uptime, a fully symmetric cluster file system that enables scalable data sharing, a cluster volume manager that aggregates array performance and simplifies storage management, and cluster management capabilities for managing servers and storage as one. When coupled with Matrix Server, nStor's SATA and fiber channel RAID products allow customers to benefit from a comprehensive, high-performance, but affordable, clustering solution. "We're please to provide joint, certified solutions with nStor that our mutual customers can confidently rely upon,” said Steve Norall, PolyServe director of marketing.

"This certification program continues the focus of nStor's commitment to provide solutions that meet the needs of today's small to medium business storage customer with best in class products and services," noted Lisa Hart, nStor's executive vice president marketing and alliances.

nStor's products and services support data networks utilizing advanced technologies. These products include nStor's NexStor and newly introduced OneStorTM platform of products that include Fibre, SAS, SCSI and SATA platforms and StorView storage management software. The Company's products protect data across a multitude of storage-intensive applications, such as finance, healthcare and video. As a result, nStor's solutions form the storage foundation for businesses of all sizes as well as government agencies and universities worldwide. Combining StorView management tools and the power of integrated platforms allows for simple, intelligent and affordable networked storage while requiring no specialized expertise to install and manage.

About Polyserve, Inc.

PolyServe, Inc. is a leading provider of software for enabling utility computing on Linux and Microsoft Windows® in enterprise data centers. PolyServe's unique shared data clustering software virtualizes industry-standard servers and storage as a single system to set new price-performance standards for file serving and server consolidation. In addition to its headquarters in Beaverton, Ore., PolyServe has a Microsoft development center in Bellevue, Wash. It also has sales and support offices in Atlanta, Boston, Chicago, Houston, London, Minneapolis, New York, Washington, D.C. and San Francisco. For more information about PolyServe, visit http://www.polyserve.com , or call 877-476-5973.

About nStor Corporation, Inc.

Headquartered in Carlsbad, Calif., nStor is a wholly owned subsidiary of nStor Technologies, Inc. (AMEX: NSO) and developer of data storage solutions that are ideally suited for both large enterprises as well as small to mid-sized businesses. The Company's flagship controller technology and StorView software form the foundation for the NexStor and OneStor family of turnkey solutions that support today's leading operating environments. Designed for storage-intensive environments and mission-critical applications, nStor's products are offered in various architectures including Fibre Channel, SAS, SCSI and SATA and are focused on addressing customers' business needs and applications. The Company markets its storage solutions through a global network of OEM partners and solutions integrators. For more information, visit http://www.nstor.com .