SIMI VALLEY, CA -- (Marketwire) -- 08/21/12 -- Qualstar® Corporation (NASDAQ: QBAK), a manufacturer of data storage solutions and high-efficiency power supplies, announced a 13% reduction in workforce late last week related to the end of life certain unprofitable, legacy product lines and old drive technologies. This action is expected to result in annual savings of approximately $480,000. This decision is part of the company's previously-announced strategic plan and one of many steps the company is taking to lower its breakeven and reach its target of profitability by fiscal year-end.

"Although these actions are never easy, this is one of the many steps we are taking to more effectively manage costs and streamline our operations to focus on key market opportunities," said Larry Firestone, President and CEO. "Qualstar (QBAK) remains committed to taking the necessary steps to drive revenue growth and improve profitability to deliver value to its shareholders."

About Qualstar Corporation
Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies. The company's products are known throughout the world for high quality and Simply Reliable designs that provide years of trouble-free service. More information is available at www.qualstar.com or www.n2power.com or by phone at 805-583-7744.

For more information, contact:

Nicki Andalon
Vice-President & CFO
Qualstar Corporation
(805) 583-7744
Email Contact

Vanessa Lehr/Annie Leschin
Investor Relations
StreetSmart Investor Relations
(415) 775-1788

Source: Qualstar