Overland Will Move From Milpitas to San Jose

Overland Storage, Inc. has completed plans for a July 2010 move from its Milpitas, California office to a new location in downtown San Jose, California. The newly designed offices in San Jose’s Cityview Plaza Towers will accommodate current staff, centralizing the company’s sales and marketing organizations, and provide room for expansion to keep pace with planned growth for the organization. Overland’s new location offers a modern, open layout created to provide a working environment that fosters creativity and the open exchange of ideas among Overland employees and between Overland’s staff and clients.

"Silicon Valley is widely recognized as a center of excellence for the high tech industry. We have carefully selected Overland’s new location to take advantage of that reputation and provide our team a great work environment," said Eric Kelly, president and CEO of Overland Storage. "Employees will be within walking distance to countless restaurants, hotels and art and cultural venues. In addition, our team will have walking access to public transportation and new housing options, offering employees efficiencies in their work day travel by facilitating walking, biking and use of public transportation. We recognize that access to travel alternatives not only offers many benefits to our team, but to the community as well, by promoting less stress, cleaner air, reduced consumption of resources and less traffic congestion."

Jonathan Praw, vice president of BPG Properties, the group that owns Cityview Plaza, also pointed to the region’s rich history as a high tech pioneer as the reason why companies find San Jose a great place to do business. "Silicon Valley has the highest concentration of high tech workers of any metropolitan area, and downtown San Jose has long been recognized as the Capital of Silicon Valley," said Praw. "As a recent winner of multiple awards recognizing excellence in facilities and building management, we are proud of Cityview Plaza and pleased that Overland Storage has chosen it for their new Silicon Valley location. With onsite retail services, high-end restaurants, a fitness facility and state of the art conference center, Cityview Plaza provides a premiere facility and ideal location for Overland and its employees."

With the announcement of Dr. Geoff Barrall as CTO and vice president of engineering earlier this month, the company will also be combining its product management and product development groups for disk-based data storage at the new location. This will allow Overland to enhance collaboration and accelerate the development of next generation storage technologies.

As part of his employment agreement, Dr. Barrall was granted an inducement stock option for the purchase of up to 218,356 shares of its common stock in accordance with NASDAQ Listing Rule 5635 (c)(4).

Overland’s move to the Cityview Plaza Tower location will initially occupy 21,000 square feet of the 159,000 square foot 13-floor tower, with the option to occupy additional space as the company further expands its sales, marketing and engineering efforts. Overland will continue to operate out of its current Milpitas location until July 2010, after which its new Silicon Valley address will be: 125 South Market Street, San Jose, California 95113.