NEXSAN FINDS ITSELF IN A 'MAGIC' POSITION

Storage solution leader added to Gartner's 'Magic Quadrant for Midrange Enterprise Disk Arrays' 2006

WOODLAND HILLS, Calif., December 18, 2006 - Nexsan Technologies, the leader in innovative and secure storage solutions, today announced that it has been included in Gartner's "Magic Quadrant for Midrange Enterprise Disk Arrays" report for the second half of 2006 based on its strength in high-capacity, lower cost enterprise ATA/SATA storage technologies.

Gartner positions vendors on the criteria of their completeness of vision and ability to execute. Completeness of vision is a measure of a company's value-added functions, degree of product alignment with market needs, software architecture, price/performance, technology and product breadth. Ability to execute score is determined by factors of market share, marketing effectiveness, effectiveness in all sales channels, market credibility, financial stability and product performance.

"I am pleased that Nexsan has been included in Gartner's 'Magic Quadrant for Midrange Enterprise Disk Arrays' report," said Brendan Kinkade, Vice President of Marketing at Nexsan. "Nexsan's vision of very high density, lower cost storage arrays has had a huge impact on the storage landscape as it exists today. And as evidenced by the unprecedented number of petabytes of storage systems we will ship this quarter, Nexsan's ability to execute on that vision is unparalleled by any other vendor outside of the $1 billion+ players."

Among the Nexsan products evaluated by Gartner for inclusion in the Magic Quadrant is the Assureon, the first secure and intelligent archive - a complete solution that combines advanced encryption with content addressed storage, ILM technology and other patent-pending security features into a single, fully integrated disk-based system; SATABeast, the first storage high-performance, high-capacity RAID storage system that also offers the energy saving benefits of AutoMAID technology; the highly scalable SATABoy, which enables cost-effective storage of large amounts of information online, such as fixed content, reference data, disaster recovery and disk-to-disk backup. Nexsan storage arrays feature native Fibre Channel and iSCSI connectivity and are easily integrated into a wide variety of storage environments.

Gartner Inc. is an independent provider of IT advisory and market intelligence and research services worldwide. The firm targets IT decision makers and senior-level executives. Its primary business consists of research and analysis of significant IT developments and trends and the application direction management measurement and evaluation of technology. The firm also hosts annual conferences symposia briefings audio conferences video conferences and vendor exhibitions for IT decision makers worldwide. Gartner also conducts customized consulting engagements focused on the management of IT infrastructure within the enterprise. Gartner was founded in 1979.

About Nexsan Technologies
Nexsan Technologies, headquartered in Woodland Hills, Calif., has changed the way IT managers are storing and protecting corporate data. From the outset, Nexsan has moved to the forefront because it recognized the need for corporate managers to 'do more with less.' Nexsan was the first to deliver award-winning storage solutions that provide correct-cost pricing, without sacrificing features and performance - attributes that make good business sense for virtually every size company. Every Nexsan product is a total solution, with unprecedented ease of use, features, performance and reliability, all priced to fit the requirements of IT managers worldwide. For more information, please see the company's website at www.nexsan.com.

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Nexsan and Assureon are trademarks of Nexsan Technologies. All other brand and product names are, or may be trademarks of their respective owners.