STORAGE

NASHUA, NH -- Storage Computer Corporation (AMEX:SOS), a leading worldwide provider of high-performance storage, today announced that it has completed a $5,000,000 financing through a private placement of Preferred Stock to Rose Glen Capital Group, an existing institutional investor in the Series C Convertible Preferred Stock of the Company. The new Series E Convertible Preferred Stock is convertible into 771,605 shares at a fixed conversion price of $6.48 and may be converted at any time until October 31, 2003 when conversion is automatic. Except for a preference on liquidation, the Series E Convertible Preferred Stock is essentially equivalent to a common stock in that it is nonvoting, bears no dividends and contains no anti-dilution protection or other special rights. The investment also includes the issuance of warrants to acquire common shares at $10.80 per share. Peter Hood, the Company's Chief Financial Officer commented, "We are pleased that Rose Glen Capital Group was willing and able to extend its commitment to the Company. They now have invested $17,000,000 in the Company. We view this as important validation of the Company's progress as we believe that Rose Glen Capital Group shares our optimism about the optical networked storage sector and Storage Computer's early technological leadership position, as well as management's aggressive action in the enforcement of the Company's extensive intellectual property rights." For more information visit www.storage.com