Market Overview

Qualstar Corporation Introduces the Q40 Expandable Library Offering Enhanced Capacity and Performance for the Mid-range and Enterprise Class Markets

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Qualstar
Corporation
(NASDAQ:QBAK), a manufacturer of data storage solutions
and high efficiency power supplies, announced the release of the Q40
expandable library
that offers extreme density and performance in
the 3U space.

The Qualstar Q40 is an automated backup/archive solution that
offers exceptional storage density, expandability and performance. The Q40
satisfies the need of high capacity but space restrained customers. The
base unit offers 384 terabytes native capacity using LTO 8 tape
technology expandable to 3.26 PB native capacity in only 21 U rack
space. Combined with 1.08 TB/hr data transfer rate per LTO 8 drive this
library can offer a total of 22.5 TB/hr with 21 tape drives offering
exceptional space to capacity and performance ratio.

"With the availability of the Q40 tape library, Qualstar has
added the needed solution for data storage market requiring high
capacity, high performance and high density," stated Arun Vaishampayan,
VP of Global Sales at Qualstar Corporation. "The Q40 expandable
tape library completes the full product spectrum supporting all backup
and archiving needs of the markets today."

The new Q40 expandable library is now available through
Qualstar's established channel of distribution and reseller partners.
The Q40 will ship with a barcode reader, a rackmount kit, remote
management capability and comes with a two-year advance replacement
warranty.

"As businesses today are challenged by limited space and exponential
data growth, the need for high density, high performance data storage
solutions continue to grow," says Steven N. Bronson, CEO of Qualstar
Corporation. "With the huge long-term data retention requirements of
many markets coupled with new data compliance requirements, the
mid-range and enterprise class tape automation market is predicted to
grow and Qualstar's full spectrum of product offerings give users the
option to meet their storage capacity requirements at a competitive
price."

About Qualstar Corporation

Qualstar, founded in 1984, is a diversified electronics manufacturer
specializing in data storage and power supplies. Qualstar is a leading
provider of high efficiency and high-density power supplies marketed
under the N2Power™ brand, and of data storage systems marketed under the
Qualstar™ brand. Our N2Power power supply products provide compact and
efficient power conversion for a wide variety of industries and
applications including, but not limited to telecom, networking,
broadcast, industrial, lighting, gaming and test equipment. Our Qualstar
data storage products are used to provide highly scalable and reliable
solutions to store and retrieve very large quantities of electronic
data. Qualstar's products are known throughout the world for high
quality and Simply Reliable™ designs that provide years of trouble-free
service. More information is available at
www.qualstar.com
or
www.n2power.com
or by phone at 805-583-7744. Connect with Qualstar on LinkedIn or
Twitter.

Cautionary Statement Concerning Forward-Looking Statements

Statements used in this press release that relate to future plans,
events, financial results, prospects or performance are forward-looking
statements as defined under the Private Securities Litigation Reform Act
of 1995 and include statements about the predicted growth of the
mid-range and enterprise class tape storage market and Qualstar's
ability to meet the storage capacity requirements of users at a
competitive price. All statements, other than statements of historical
fact, are statements that could be deemed forward-looking statements.
These forward-looking statements are based upon the current expectations
and beliefs of Qualstar's management and are subject to certain risks
and uncertainties that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements. For
further information on these risks and uncertainties, please refer to
the risk factors discussed in Qualstar's filings with the U.S.
Securities and Exchange Commission including, but not limited to,
Qualstar's Annual Report on Form 10-K for the fiscal year ended December
31, 2017, the "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section of such Form 10-K, and any
subsequently filed reports. All of Qualstar's filings are available
without charge through the SEC's website (
www.sec.gov)
or from Qualstar's website (
www.qualstar.com).The
information contained in this press release is as of the date of this
press release. Notwithstanding changes that may occur with respect to
matters relating to any forward-looking statements, Qualstar does not
expect to, and disclaims any obligation to, publicly update any
forward-looking statements whether as a result of new information,
future events or otherwise. Qualstar, however, reserves the right to
update such statements or any portion thereof at any time for any reason.

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