nStor Announces Strategic Distribution Agreement With Headway

Technology Group to Capture European Imaging Market 
nStor Positioned to Support Growing Demand for High-Availability Storage 
CARLSBAD, Calif., Jan. 10 /PRNewswire-FirstCall/ -- nStor Corporation,
Inc., a subsidiary of nStor Technologies, Inc. (Amex: NSO) and an innovative
developer of storage-network solutions, today announced a strategic
distribution agreement with Headway Technology Group, Europe's preeminent
supplier of imaging and document management technology.  Under the terms of
the agreement, Headway will market nStor's NexStor(R) platform of storage
systems and StorView(R) management software as well as a range of services
tailored for the small to mid-sized business (SMB) market throughout Europe. 
Headway will leverage nStor's high-availability systems to support the
rising demand for scalable, reliable and cost-effective storage solutions in
selected emerging markets in the European market. As an established
distributor in imaging technology, Headway will lead the deployment of nStor's
storage systems in data-intensive environments, including document capture,
archiving and medical imaging. In addition, the companies will work together
to expand nStor's business with international original equipment manufacturers
"We are extremely pleased to work with a well-respected technology leader
like Headway to accelerate our penetration of the European market," said Todd
Gresham, nStor's president and CEO. "Together we will be able to address the
rapidly growing need for highly available yet cost-effective systems that are
designed to support the specific requirements of storage-intensive imaging
As part of the agreement, Headway will distribute nStor's 4000F Series
Fibre Channel and Serial ATA (SATA) solutions as well as StorView global
management software, which streamlines the deployment and management of
storage resources. With StorView, engineers can dial-in daily to check the
performance of their nStor storage systems from anywhere in the world. 
According to David Lewis, managing director of Headway UK, the company has
a strategy of working in partnership with key manufacturers to deliver value-added technology solutions. "We are delighted to reach an agreement with
nStor, a company with products that are highly regarded for quality,
performance and competitive pricing. We will work closely with our new,
esteemed partner to provide our customers with the ideal blend of powerful yet
economical storage solutions that solve their business problems while ensuring
compliance with mounting legislative and good governance requirements." 
For Comino Group plc, based in Buckinghamshire, England, Headway deployed
an nStor Fibre Channel system to provide robust performance and reliable
support for the company's storage infrastructure systems. The acquisition of
two new businesses caused Comino's storage demands to escalate quickly while
straining its existing storage infrastructure. Comino turned to Headway for
assistance in implementing a standardized approach for consolidating its
expanding storage requirements. As part of its distribution agreement with
nStor, Headway installed the best-of-class NexStor Fibre Channel system to
meet Comino's requirements for a high-performance, cost-effective storage
foundation upon which to support its expanding business. 
As part of its distribution agreement with nStor, Headway will continue to
work with other storage-intensive organizations throughout Europe to deploy
nStor systems, providing enterprise-class functionality at a fraction of the
cost of higher-end Fibre Channel systems. 
About Headway Technology Group 
Headway Technology Group is an Acal Plc company focused on the imaging
market with particular emphasis in recent years on Electronic document
management technologies. Established in 1985, Headway became one of the first
European companies to enter this field and now has an enviable reputation
across the main territories of Europe. In 1995, Headway became part of Acal
Plc. The Acal Group has over 1000 employees and is a leading value added
distributor providing specialist design in sales and marketing services for
international suppliers in the fields of Electronic Components, Industrial
Controls, I.T. Products and I.T. parts and services. http://www.headway.co.uk 
About Comino Group 
Comino has a strong presence as a modern software solutions provider in
Local Government, Social Housing and Occupational Pensions. The Company's
solutions are based on Workflow, Electronic Document Management (EDM) and a
high competence level in the back-office administration systems that are
associated with their target markets. Improved service delivery solutions are
at the heart of the product strategy.  Comino's operating companies are based
near Maidenhead and in Leeds, Croydon and the West Midlands.  
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 family of turnkey solutions that
support Microsoft Windows, Linux, UNIX and Macintosh operating environments.
Designed for storage-intensive environments and mission-critical applications,
nStor's products are offered in various architectures including Fibre Channel,
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 systems integrators. For more information, visit
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimated," "project," "expect," "anticipate," or similar expressions. These
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not limited to, the
Company's inability to increase sales to current customers and to expand its
customer base, continued acceptance of the Company's products in the
marketplace, the Company's inability to improve the gross margin on its
products, competitive factors, dependence upon third-party vendors, outcome of
litigation, insufficient funding and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission. By making
these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this
release. nStor and StorView are registered trademarks of nStor Technologies,

SOURCE  nStor Corporation, Inc. 
Veena Raman of nStor Corporation, Inc., +1-760-683-2500, vraman@nstor.com; or 
Sue Hetzel of HetzelMeade Communications, +1-760-434-9927, sue@hetzelmeade.com, 
for nStor Corporation, Inc.
-0- Jan/10/2005 14:02 GMT
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