CASTLE ROCK, CO -- SAN Holdings, Inc., dba Storage Area Networks (OTC Bulletin Board: SANZ) announced the closing on June 30, 2001 of a private placement offering that provided the Company net proceeds of $4.7 million in additional equity. The offering consisted of common stock and warrants and will initially increase the Company's common shares outstanding to slightly over 18 million. John Jenkins, CEO commented, "We were encouraged by the positive response to the private placement in today's difficult equity markets. The proceeds of this private placement, in combination with the previously announced $2,500,000 bank line from Wells Fargo provide a solid foundation from which we can execute our strategies for growth."