"NSM and DISC make outstanding partners, with both companies having been successful in their own respective markets," stated Wilfried Beckmann, Managing Director of NSM Storage. "This strategic alliance enables NSM Storage to add a series of sophisticated and highly reliable MO jukeboxes to its CD/DVD-based storage products, thereby enhancing NSM Storage's customer and market potential. DISC products will help make NSM Storage even stronger."

"This move extends the successful partnership which has existed between DISC and NSM in the U.S. market, where DISC has resold the NSM line of CD and DVD libraries since April of 2000," stated Richard Ellis, DISC President and CEO. "Both NSM and DISC are committed to the same high level of quality and to providing users with the best possible solutions for their storage requirements. The partnership with NSM also gives DISC a presence in the European Community that we have not previously had. This presence will allow us to compete in markets that were not previously available to DISC."

The strategic alliance will allow DISC and NSM to extend their product offerings with a complete line of products for storage applications based on the most reliable storage technologies ever built. Disc's optical library will be on display at NSM Storage's stand at Cebit 2001 from 22-28 March (stand A37, Hall 12).

About DISC:

Established in 1986, DISC, INC., a manufacturer of automated solutions for enterprise storage, provides companies with nearline storage devices that add capacity to networks for a fraction of the cost of RAID. DISC storage solutions range in capacity from 180 GB to 9.5 TB and are designed for high performance and maximum reliability. Headquartered in Milpitas, CA, DISC, Inc. can be found on the World Wide Web at www.disc-storage.com. Sales and engineering offices are located in Northern California, Dallas, Chicago, Boston, Phoenix, Washington D.C. and the United Kingdom. DISC, Inc. can be reached by calling (800) 944-3472 or (408) 934-7000 or by e-mail at sales@disc-storage.com.

About NSM:

NSM Storage GmbH is a subsidiary of PSi Printer Systems international GmbH. It was founded in 1994 as a subsidiary of NSM AG and, up until its takeover by PSi in November 1999, went under the name of NSM Jukebox GmbH. Subsidiaries in the US and the U.K. and representatives in 40 further countries gives users access to a worldwide sales, service and support network.
NSM Storage is a pioneer in the development of jukebox technologies and for many years has played a leading role in the field of jukebox systems for optical data media which can be used wherever large quantities of data need to be managed, archived and accessed. These applications include libraries (provision of non-changeable data), archiving (saving onto non-rewritable media), storage (storage and provision of data on rewritable media) and backup.NSM Storage's customers include numerous banks, local authorities and insurance companies as well as well-known businesses from a whole range of industries. Further information can be found at the company's website at http://www.nsmstorage.de.

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DISC is a registered trademark. Any other product names are trademarks or registered trademarks of their respective companies.

Statements made in this news release are forward looking statements that involve risks and uncertainties. These forward looking statements include statements relating to our product leadership, the integration of our products with NSM Storage's products, the potential market for our products, improving sales and marketing efforts, new business development and obtaining new accounts, rapid growth of the storage market and increasing market share. As discussed in the Company's Annual Report on Form 10-K for the year ending December 31, 1999 and the Quarterly Reports on Form 10-Q for the first, second and third quarters of fiscal 2000, the Company's future operating results are uncertain and may be impacted by the following risks and uncertainties, among others: market acceptance of our products, our ability to keep pace with technological innovation and competitive developments, our ability to respond to changes in the data storage market, our ability to raise future capital which we anticipate will be required to finance our operations, the loss of key personnel, our history of losses, the loss of customers or distributors and increased competition and pricing pressure.