OnStream, Inc. Positioned to Capitalize on Growing Demand for Affordable, High-Capacity Removable Storage

Company Announces 30GB and 50GB Solutions Starting at Less Than $300

Nov 05, 1998, 00:00 ET from OnStream, Inc.

    LONGMONT, Colo.,  Nov. 5 /PRNewswire/ -- OnStream, Inc., developer of
 affordable, high-capacity, removable storage for the server and desktop
 markets, today announced it will unveil four new products at COMDEX Fall '98
 (Booth #L6070) in Las Vegas, Nev. on November 16.  OnStream's patented
 Advanced Digital Recording(TM) (ADR) technology is the foundation for its
 innovative storage solutions.  With their unique blend of high capacity, high
 performance, excellent reliability, convenience and affordability, OnStream
 solutions fill rapidly growing voids in the market.  Backed by Philips
 Electronics, GE Capital, Charterhouse International and William B.
 Beierwaltes, OnStream's chairman and CEO, OnStream has partnered with leading
 technology companies including Verbatim(R) Corporation for cartridge
 manufacturing and development support, and Computer Associates for server
 software support.
     "The PC server market is seeing strong unit growth with rapidly declining
 prices.  Server backup solutions must be able to keep pace with these cost
 declines.  There is a significant opportunity for products that can address
 any cost of ownership disconnect while still providing the right capacity,
 performance and reliability," said Fara Yale, director and principal analyst,
 Dataquest's Computer Storage Group.
     "Server customers face an increasing need for reliable backup solutions
 that can keep up with growing hard drive capacities while simultaneously
 staying in sync with falling server costs.  OnStream's new digital tape drives
 fill that void.  And, with multimedia and faster Internet access driving
 exponential increases in content, power desktop customers have a growing need
 for a single removable solution that can provide high volumes of easy access
 storage, as well as effortless, completely automatic backup and organization
 of all their files," said Beierwaltes.  "These new products deliver an
 unprecedented blend of capacity and convenience to fulfill these unmet needs
 in today's booming removable storage market.  And, ADR technology provides a
 potent growth path into the future."
     Products and Technology
     OnStream's SC30 and SC50 digital tape drives for PC servers and mission
 critical workstations are internal SCSI solutions that provide 30 gigabytes*
 and 50 gigabytes* respectively, and a native transfer rate of up to 2MB/sec.
 Minimum advertised pricing is US $499 for the SC30 and US $699 for the SC50.
 With an ability to back up the hard disks of most PC servers on a single
 cartridge, OnStream's solutions are more than half the cost of competing
 products with similar capacities.  With a breakthrough eight-channel array
 head, a sophisticated embedded servo system, spatially distributed ECC, and a
 bit error rate of only 1 in 10(19), OnStream's digital tape drives deliver a
 unique level of reliability for mission-critical installations.
     The SC30 and SC50 will be compatible with leading network backup software,
 including Computer Associates' ARCserve(R)IT(TM) storage management solution.
 ARCserve(R)IT(TM), which delivers backup/restore for homogeneous Windows NT
 environments, will be bundled with selected OnStream SKUs.  Both the SC30 and
 SC50 include OnStream Echo(TM) software for workstations.
     OnStream's DI30 (Internal IDE) and DP30 (External Parallel Port) digital
 drives for power desktop PC customers offer up to 30 gigabytes of storage and
 a native transfer rate of up to 1 MB/sec.  The first "set-it-and-forget-it"
 removable storage solutions for the desktop, these unique products combine the
 capacity and low cost per gigabyte of a high-performance tape drive with the
 familiar usability model of a disk drive.  Enabled by the innovative OnStream
 Echo software, these solutions provide customers gigabytes of extra "drag and
 drop" storage, completely automatic daily backup, and effortless organization
 of and access to all files on their removable media.
     OnStream's Digital Drives are compatible with Microsoft(R) Windows 95(TM),
 98(TM) and NT(TM) and can back up today's large hard drives on only one
 cartridge.  Minimum advertised pricing is US $299 for the DI30 and US $399 for
 the DP30.
     Additional Storage as Low as $1 per Gigabyte
     Removable 30GB and 50GB ADR cartridges complete OnStream's innovative
 product offering.  The 30GB cartridges, priced as low as $33** per cartridge,
 work in both the 30GB and 50GB drives.  The 50GB cartridges, priced as low as
 $43** per cartridge, work in the 50GB drive. Both types of cartridges will be
 available in single and three packs.
      Availability of OnStream's new products is planned for the first quarter
 of 1999.
     Key Partnerships
     "As a major supporter of OnStream and its ADR technology, we have great
 confidence in its ability to become a leader in the removable storage market,"
 said Chris Stuve, Managing Director, Philips Components.  "OnStream's new
 products offer outstanding new alternatives for today's computer users who
 demand low-cost, high-capacity storage."
     "In developing the media technology for OnStream's new digital tape
 drives, our objective was to complement the capacity and performance of ADR
 technology with the highest levels of reliability while keeping storage costs
 low," said Randy Queen, Verbatim's Vice President of Technology and Business
 Development.  "Based on early reactions from our customers, we see huge
 opportunities for ADR-based solutions in today's storage hungry marketplace."
     "By combining Computer Associates' ARCserve(R)IT(TM) storage management
 solutions with OnStream's digital tape drives, OnStream will provide server
 users with virtually effortless management and protection of their critical
 information at a price that makes sense," said Ken Farber, Vice President of
 Strategic Business Alliances of Computer Associates.
     Experienced Leadership
     OnStream is led by Beierwaltes, who brings extensive entrepreneurial and
 management experience to the company.  Beierwaltes previously served as CEO
 and chairman of Colorado Memory Systems, a company he founded to design and
 manufacture tape backup systems for PCs.  The company achieved approximately
 65 percent market share before being sold to Hewlett-Packard in 1992.
     About OnStream
     OnStream, Inc. was incorporated in 1998 to deliver affordable high-
 capacity removable storage solutions for PC servers, workstations, and power
 desktops.  The privately held, Colorado-based company is a spin-off from
 Philips Electronics of The Netherlands.  Philips holds significant equity in
 the new company.  Powered by its patented ADR technology, OnStream's initial
 products offer up to 50 gigabytes of capacity and target the growing need for
 solutions that can deliver the right blend of capacity, performance,
 reliability and convenience -- all at prices that make sense for today's power
 desktop and PC server computer users.
     For more information about OnStream's partners, see
 http://www.philips.com, http://www.verbatimcorp.com, http://www.cai.com.
     *Capacities assume 2:1 compression using backup software.   Capacity and
 performance will vary with file types and system configuration.
     **Based on minimum advertised pricing of 3-pack SKU.
     OnStream, ADR, OnStream Echo, the OnStream logo and ADR logo are
 trademarks of OnStream, Inc.  All other trademarks are properties of their
 respective companies.

SOURCE OnStream, Inc.