SAN DIEGO – July 1, 2008 – Overland Storage, Inc. (Nasdaq: OVRL) today announced it has been selected by Everything Channel as a CRN Emerging Tech vendor for its REO® 9500D deduplicating VTL solution. CRN's Emerging Tech list captures companies that are delivering high margins for solution providers with innovative and easy-to-use technology that undercuts industry giants.

Introduced in November 2007, Overland’s REO 9500D extends the company’s proven REO SERIES® disk-based VTL platform to dramatically reduce data backup, recovery and long-term retention costs. The robust 9500D builds on the market momentum of Overland’s REO VTLs while complementing the company’s broad array of tape-based appliances to meet a wide range of data protection requirements.

Overland also has expanded its value-added channel initiatives with the recent creation of a certified VAR program and Partner Council to address ever-increasing demands for profitable, flexible as well as easy-to-use and manage products that embrace the latest disk and tape technologies. The company has significantly broadened and diversified its product portfolio over the past few years, so the additional training will help channel partners take a more consultative and diagnostic sales approach. Additionally, Overland continually reinforces its channel commitment through proactive communications, regular education and an interactive exchange of strategic marketing and sales ideas.

According to the CRN Emerging Tech Survey, the top reasons solution providers add emerging technologies include: the technology is superior to other products in the market segment; the technology complements a solution providers’ existing practice areas; emerging vendors provide better services opportunities; emerging vendors pay better attention to partners; emerging vendors offer higher margins; customers want alternative product choices; and emerging vendors have better joint marketing programs. In addition, 61 percent of solutions providers surveyed plan to increase the number of emerging technology vendors they partner with in the next 12 months.

"New and innovative vendor partners can help spur profitable new ideas that Solution Providers can use to build revenue and customer loyalty, and the CRN Emerging Tech list is where Solution Providers go to find these vendors," said Robert C. Demarzo, senior vice president and editorial director, Everything Channel editorial.

Vendors who make the CRN Emerging Tech list must have an established solution provider program and formal guidelines for recruiting channel partners. They must demonstrate that their direct sales mix is trending down as evidenced by the company’s revenue history, a channel positive or channel neutral strategy for internal sales compensation, and not be a dominant market share player. Final selection to the Emerging Technology list was made at the discretion of the CRN editorial team after a review of the submitted information and conversations with current or targeted partners.

“We are extremely pleased to be recognized for Overland’s technology excellence and channel leadership,” says Ravi Pendekanti, vice president of worldwide marketing for Overland Storage. “Overland takes great pride in working closely with our global channel partners to accelerate sales and ramp up revenues of high-margin, innovative data protection solutions that solve today’s toughest data protection problems.”

About CRN

CRN provides solution providers and technology integrators with the crucial information and analysis they need to drive their company’s sales. As an advocate for and voice of the IT channel, solution providers turn to CRN first for immediate information.

Celebrating its 25th year, CRN is the most trusted source for channel professionals.

CRN can be found on the web at www.channelweb.com. verything Channel (www.everythingchannel.com, www.channelweb.com)

Everything Channel, formerly CMP Channel, is the global leader in technology sales and serves as the one stop shop for the sales channel that drives 75 percent of technology sales throughout the world. IT suppliers and Solution Providers turn to Everything Channel to manage and accelerate their business. Everything Channel provides the answer to strategy and branding, online marketing, research/market intelligence, lead generation, branded and custom events, education and workflow tools targeted to those who buy and sell through the Channel. Everything Channel is a subsidiary of United Business Media (http: //www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

About Overland Storage

Overland Storage is a market leader and innovative provider of smart, affordable data protection appliances that help midrange and distributed enterprises ensure businesscritical data is constantly protected, readily available and always there. Overland’s award-winning products include NEO SERIES® and ARCvault™ tape libraries, REO SERIES® disk-based appliances with Virtual Tape Library (VTL) capabilities, ULTAMUS® RAID SAN-based appliances and Snap Server NAS-based appliances.

Overland sells its products through leading OEMs, commercial distributors, storage integrators and value-added resellers. For more information, visit Overland’s web site at www.overlandstorage.com.

Overland, Overland Storage, REO Series, REO, NEO Series, NEO, ARCvault Series, ARCvault

and ULTAMUS and Snap Server are trademarks of Overland Storage, Inc.