ITC Ruling That BDT Customers Directly Infringe Claims of

ITC Ruling That BDT Customers Directly Infringe Claims of Overland
Storage Partitioning Patent Was Not Changed; Ruling Strengthens
Overland Storage Mail Slot Patent 
SAN DIEGO, CA -- (Marketwire) -- 10/26/12 --   Overland Storage
(NASDAQ: OVRL), a trusted global provider of effortless data
management and data protection solutions across the data lifecycle,
today announced that the U.S. International Trade Commission ("ITC")
has released a Notice of Commission Decision in the infringement
action filed by Overland Storage against IBM, Dell and BDT. Overland
Storage previously reported that the ITC and District Court actions
against IBM and Dell had been resolved by settlement. 
The Notice of Commission Decision makes several key findings
regarding Overland Storage's U.S. Patent No. 6,328,766, which relates
to partitioning media elements in automated media devices, and
Overland Storage's U.S. Patent No. 6,353,581, which relates to the
"mail slot" feature in automated media devices. 
Several key takeaways from the Notice of Commission Decision are: 

--  The Commission decided not to revisit the decision by Chief
    Administrative Law Judge ("ALJ") Charles Bullock that BDT's customers
    directly infringe every '766 patent claim asserted by Overland
    Storage. ALJ Bullock's infringement findings are therefore final in
    the ITC.
--  The Commission remanded certain aspects of ALJ Bullock's validity
    findings on the '766 patent claims for further consideration, but all
    claims asserted by Overland Storage against BDT remain valid. The next
    decision by ALJ Bullock is expected by the end of the year.
--  The Commission's ruling strengthens Overland Storage's claims related
    to the '581 patent by reaffirming the validity findings by ALJ Bullock
    and making additional findings related to infringement of that

"We are pleased with the Commission's findings. We welcome the
opportunity to continue to prove the validity of our claims on the
'766 patent, and we are quite happy with the findings related to the
'581 patent. Innovation is the driving force of technology companies,
and the ability to create and protect their intellectual property is
critical to companies as they develop new
 products and protect
existing assets," said Mr. Eric Kelly, President and CEO of Overland
Storage. "With an extensive portfolio of additional patents that have
been granted, our IP portfolio will assist us in continuing to shape
the future of the data management and data protection markets for
years to come." 
Overland Storage lead attorney Sean Cunningham, Partner at DLA Piper
LLP commented, "This decision by the full Commission is another step
in the process of proving that BDT and others in the data storage
industry have been using Overland Storage's intellectual property
without permission. Overland Storage will continue to enforce its
intellectual property rights against those who choose to violate
Represented by DLA Piper LLP (US), Overland Storage previously
reported that it filed additional lawsuits on June 28, 2012 claiming
infringement of one or both of the Overland Storage patents involved
in the ITC case against BDT. Those lawsuits name as defendants
Quantum Corporation; Spectra Logic Corporation; PivotStor, Inc.;
Qualstar Corporation; Tandberg Data GmbH; Tandberg Data Corp.; and
Venture Corporation Limited. In addition to a royalty for its
patented inventions, Overland seeks to prevent each of the defendants
from using its patented technologies in the United States. Upon
completion of the ITC case, Overland Storage plans to pursue monetary
damages against BDT in district court.  
About Overland Storage 
Overland Storage is a trusted global provider of effortless data
management and data protection solutions across the data lifecycle.
By providing an integrated range of technologies and services for
primary, nearline, offline, archival and cloud data storage, Overland
makes it easy and cost effective to manage different tiers of
information over time. Overland SnapServer(R), SnapSAN(TM), NEO(R)
and REO(R) solutions are available through a select network of value
added resellers and system integrators. For more information, visit  
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Investor Relations Contact:
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MKR Group Inc.
Media Contact:
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Bhava Communications
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