nStor Announces Strategic Distribution Agreement With Headway

 Technology Group to Capture European Imaging Market  nStor Positioned to Support Growing Demand for High-Availability Storage  Solutions  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 (OEMs).  "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 applications."  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.   http://www.comino.com  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 http://www.nstor.com.  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, Inc.   SOURCE  nStor Corporation, Inc.  CONTACT: 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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