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Qualstar Receives Nasdaq Notification of Non-Compliance

For not maintaining minimum of $10 million in stockholders' equity

Qualstar Corporation received notification from Nasdaq for not maintaining a minimum of $10,000,000 in stockholders’ equity based on our 10-Q for the period ended March 31, 2014. Qualstar stockholders’ equity as of March 31, 2014 was $9,791,000.

Qualstar has the option to either submit a plan to regain compliance within 45 days, or, file a transfer application to list the company’s securities to The Nasdaq Capital market.

Qualstar is currently exploring its options.

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