Overland to Sell 3.2 Million Shares of Common Stock

Overland Storage Inc. is offering to sell, subject to market and other conditions, shares of its common stock in an underwritten public offering.

The company announced a pricing of an underwritten public offering of 3,200,000
shares of its common stock at a price of $2.00 per share. Overland has
also granted to the underwriter a 30-day option to acquire an additional
480,000 shares to cover overallotments in connection with the offering

It  expects to receive net proceeds of approximately $5.8 million
after deducting the underwriting discount and estimated offering
expenses payable by Overland, assuming no exercise of the overallotment
option. The offering is expected to close on March 28, 2012, subject to
customary closing conditions

Needham & Company, LLC is acting as the sole underwriter for the offering.

Overland intends to use the net proceeds from the offering for general corporate purposes, which may include, among others, working capital.