News Release
March 28, 2007

Pillar Data Systems continues unprecedented growth: expands into APAC region
~company partners with leading Japanese distributor~

To better serve the storage needs of its growing customer base, Pillar Data Systems, a leading provider of enterprise network storage systems, has announced its expansion into Japan through a partnership with Nissho Electronics

Terms of the deal enable Nissho to sell and support Pillar�s award-winning storage solutions. This marks the first time Japanese enterprises can enjoy the benefits of the most efficient and innovative storage system on the market today.

The Pillar Axiom Storage System consolidates multiple tiers of storage, applications and environments (SAN, NAS, and Fixed Content) in a single environment, enabling storage managers to reduce the cost and complexity typically associated with deploying traditional storage systems.

'Nissho Electronics is one of Japan�s leading technology distributors, and we�re thrilled to be partnering with them as Pillar continues its unprecedented growth,� said Mike Workman, CEO and President, Pillar Data Systems. �Nissho shares Pillar�s commitment to delivering the best customer care in the industry, and to delivering innovative solutions that drive down the cost and complexity of data storage systems.'

Nissho Electronics is one of Japan�s leading technology distributors, providing cost-effective computing solutions to companies, academic organisations, and laboratories throughout the Japanese market.

'Nissho Electronics was the first to introduce NAS systems to the Japanese market in 1990, and it has continued to deal with a diverse range of NAS and SAN solutions,' said Norio Nakai, Managing Executive Officer at Nissho Electronics Corp. 'We are excited to enter into a new partnership with Pillar Data Systems to provide its Pillar Axiom Storage solutions to the Japanese market. With our extensive experience in both SAN and NAS, we look forward to the challenges of introducing and expanding Pillar solutions in the continuously and rapidly growing Japanese market.'

Today�s announcement builds on the momentum seen last year, where Pillar shipped more than 250 award-winning systems globally. The Axiom Storage System earned several industry awards, and was named �Product of the Year� and �Most Innovative Storage Product� by leading US technology publications.

Pillar is the only company to not only reduce energy consumption associated with powering and cooling storage systems, but to also reduce the overall physical space consumption of those same storage systems. As a result, the Pillar Axiom is the most efficient storage system in the market today.

For more information about Pillar Data Systems visit: www.pillardata.co.uk

Notes to Editors

About Nissho Electronics
Since its founding in 1969, Nissho Electronics has brought the world's most advanced technologies to an ever-widening segment of the Japanese market. Headquartered in Tokyo, the company has annual consolidated revenues approaching $800 million. With extensive experience and expertise built on strong market-leading customer and cutting-edge partner relationships, Nissho Electronics focuses on providing clients with practical IT solutions. As a strategic partner, Nissho resources are focused on meeting client ne

About Pillar Data Systems
Founded in 2001, Pillar Data Systems develops enterprise network storage systems. The company's Pillar Axiom solution, driven by its innovative policy-based management capabilities, integrates SAN and NAS into a centrally managed storage platform. Pillar Axiom systems consolidate multiple tiers of enterprise network storage into a single, easily managed system capable of scaling to hundreds of terabytes of capacity.

Pillar Data Systems is privately funded by Tako Ventures, LLC, the venture arm of Larry Ellison. The company is headquartered in San Jose.. The EMEA headquarters is in Ireland, with initial operations across Ireland, UK, Germany and France.