MILPITAS, Calif., (September 5, 2002) - DISC Inc. (Nasdaq: DCSR), a manufacturer of automated solutions for enterprise storage, today introduced the upgradeable NSM3000U and NSM4000U archival storage libraries. The new upgradeable models allow customers to scale their storage capacity up to four times within the same chassis with field upgradeable modules.

The NSM3000U and NSM4000U models are flexible and robust storage solutions designed to address changing storage requirements of many industries and markets, including government agencies, graphics/multimedia, financial institutions and medical imaging. The NSM series modular design architecture allows users to customize their solution by configuring drives, media slots, removable disk packs or adding a CapacityDoubler™ for double sided media. NSM3000U models are field upgradeable to a capacity of 2.54 TB, while the NSM4000U models can scale up to 3.76TB per system.

“DISC’s modular series libraries offer a secure storage archive that ensure data integrity with an availability rate that allows IT managers a way to efficiently maximize storage without breaking the budget,” stated Bob Riland, President of DISC. “In addition, with the passage of the U.S. Health Insurance Portability and Accountability Act (HIPAA), health organizations face new security standards that regulate how a patient’s health information is electronically maintained and transmitted. The archival capabilities of DISC’s modular series libraries are a perfect fit for any organization needing to be compliant with the new HIPAA standards.”

Price and Availability

Prices start at $ 5,800 depending on configuration.

About DISC:

Established in 1986, DISC, Inc., a manufacturer of automated library solutions, delivers an extensive range of NearLine storage solutions offering scalable, reliable, high-data availability network storage for mission-critical applications with capacities ranging from 40 GBs to more than 9 TBs of data. Headquartered in Milpitas, California, DISC, Inc. has sales and local customer support representation in over 40 countries. For a complete listing, check our website at www.disc-storage.com or contact us in North America at (800) 944-3472 or (408) 934-7000, and in Europe at 49 (0) 6721.964.430. DISC can also be reached at sales@disc-storage.com.

###

Safe Harbor

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements about the performance, cost and ease of integration of our Capacity Doubler™ technology, adoption of our technology by the data storage market and our customers’ ability to benefit from our services and technology are forward-looking statements. These statements are made based on our current beliefs and expectations. Investors are cautioned that all forward-looking statements involve risk and uncertainties. Actual results may differ materially from the results predicted. Risk factors that could affect our future include business conditions, economic conditions and growth in the data storage market, 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 further 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. For more information about factors that could potentially affect our financial results, please refer to our fillings with the Securities and Exchange Commission, copies of which may be accessed through the SEC’s web site at http://www.sec.gov/. We do not undertake to update any forward-looking statement that may be made from time to time by or on behalf of DISC.