Overland to Sell $4.2 Million of Shares of Common Stock

Overland Storage Inc. has entered into agreements to sell approximately $4.2 million of shares of its common stock in a registered offering to certain institutional investors.

The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, among others, working capital needs, capital expenditures and acquisitions. The Company does not have any current agreements or commitments with respect to any investment or acquisition.

The closing of the offering is expected to occur on November 17, 2010.

Roth Capital Partners, LLC acted as financial advisor in connection with the offering.