MIC Associates Report
nStor Expands OEM Relationship with NEC by Adding NexStor SATA Systems to Product Line
Long-Standing OEM Relationship Strengthened with High-Performance SATA to Complement Existing, Mid-Range Fibre Channel Storage

TOKYO, Dec 13, 2004

Carlsbad, CA December 13, 2004 -- nStor Corporation, Inc., a subsidiary of nStor Technologies, Inc. (AMEX: NSO) and an innovative developer of storage-network solutions, today announced an expanded OEM agreement with NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l), one of the world's leading providers of Internet, broadband network and enterprise business solutions. Under the terms of the extended pact, NEC will now incorporate the NexStor 4711S Serial ATA storage system into its existing line-up of NexStor mid-range Fibre Channel storage systems.

The 4711S was adopted by NEC's Client and Server Division to lower the cost and complexity of an integrated high-availability Express5800 IA-server Series solution. According to Shigeru Oshima, senior manager of File System Marketing for NEC's Client and Server Division, nStor's 4711 SATA product line gives the company an opportunity to deliver high-performance, cost-effective solutions to meet growing demands for advanced data protection, compliance and business continuity. メnStor's SATA system offers the optimal balance of performance and affordability, giving us an excellent storage platform to anchor our leading-edge clustering capabilities,モ he said. メAs a result, NEC will be able to accelerate the delivery of robust business solutions to both large organizations and small to mid-sized businesses.モ

The addition of the NexStor SATA system to NEC's cadre of storage solutions reinforces the company's long-standing, strategic partnership with nStor while complementing its existing line-up of NexStor 4310 and 4320 Fibre Channel RAID storage systems. メnStor's unwavering commitment to design engineering enables us to bring high-performance solutions to market that help partners like NEC meet the evolving demands of their customers,モ said Todd Gresham, nStor's president and CEO. メWe are extremely pleased to extend our OEM agreement with this industry leader and technology innovator to increase performance and lower cost barriers with highly integrated, best-of-class storage solutions.モ


Introduced in January 2004, nStor's 4700 series Serial ATA storage systems include both SCSI to SATA and Fibre Channel to SATA models. As the newest edition to nStor's product family, the 4711 is ideal for clustering applications, disk-to-disk backup and value-based network storage arrays.

About NEC

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,906 billion yen (approx. $47 billion) in the fiscal year ended March 2004. For additional information, please visit the NEC home page at: http://www.nec.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 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.


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