San Jose, CA. – March 27, 2007 – To better serve the storage needs of its growing customer base, Pillar Data Systems, a leading provider of enterprise network storage systems, today announced its expansion into Japan, through a partnership with Nissho Electronics. Terms of the deal enable Nissho to sell and support Pillar’s entire line of award-winning storage solutions, marking 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, thus 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 organizations, and laboratories throughout the Japanese market.

"Nissho Electronics was first in introducing NAS systems to the Japanese market in 1990, and 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 their 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 Data Systems 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 technology publications.

Pillar is the only company not only to 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 on the market today.

About Pillar Data Systems
Founded in 2001, Pillar Data Systems develops midrange and 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 at 2840 Junction Avenue, San Jose, California 95134. The company can be reached on the Web at http://www.pillardata.com, by phone at 408-503-4000 or by email at sales@pillardata.com .

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 needs.

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Pillar Data Systems, Pillar Axiom, and the Pillar logo are all trademarks of Pillar Data Systems. Other company and product names may be trademarks of their respective owners.