Thinking Outside the Box Overland Data (NASDAQ: OVRL) IS HELPING PEOPLE MANAGE the GROWING CHALLENGE of DATA STORAGE, BACKUP and RETRIEVAL

OVERLAND DATA 1999 ANNUAL REPORT

{ 570,264,247,532,125,838,317,736,403,113,714,415,832,080,779,418,009 yottabytes* } ➛ ➛

Thinking Outside the Box Overland Data (NASDAQ: OVRL) IS HELPING PEOPLE MANAGE THE GROWING CHALLENGE OF DATA STORAGE, BACKUP AND RETRIEVAL. A leading innovator IN STORAGE AUTOMATION SOLUTIONS FOR COMPUTER NETWORKS, OVERLAND OFFERS A BROAD LINE OF PRODUCTS THAT ADDRESS MARKET APPLICATIONS RANGING FROM THE ENTRY- LEVEL TO THE ENTERPRISE ENVIRONMENT. FOUNDED IN 1980, THE COMPANY IS KNOWN TODAY AS A MARKET LEADER FOR ITS award-winning DLT LIBRARYXPRESSTM SMARTSCALE STORAGE¨ ARCHITEC- TURE THAT ESTABLISHED NEW STANDARDS FOR INTELLIGENT AUTOMATED STORAGE AND SCALABIL- ITY. OVERLAND PRODUCTS, ACCLAIMED FOR THEIR quality and reliability, ARE SOLD WORLDWIDE THROUGH LEADING OEMS, INCLUDING COMPAQ, IBM, SIEMENS AND GROUPE BULL, COMMERCIAL DISTRIBUTORS SUCH AS INGRAM MICRO, TECH DATA CORP. AND BELL MICROPRODUCTS, AS WELL AS STOR- AGE INTEGRATORS AND VALUE-ADDED RESELLERS. IN FISCAL YEAR 1999, OVERLAND DATA RECORDED ITS 19th consecutive year of record revenues. Marketis exploding, drivendemand by increased use of data forintensive applications storage such as the Internet, e-mail, networking, graphics, and voice and video. Not only is demand for storage capacity growing rapidly, so is the speed with which data is transferred and accessed. Never before have we been so highly dependent on the ability to store, protect and retrieve critical data, and to do so with confidence that the data will be there, when and where we need it. Demand for reliable, rapidly accessible data storage is growing at all levels of the market – be it at the high-end enterprise level, the mid-range department level, the entry-level workgroup, or the SOHO (small office, home office) market. In response, Overland is applying “out of the box thinking” to the design and development of innovative storage solutions that extend beyond its core market focus, with the goal of creating shareholder value by meeting, indeed staying ahead of, emerging market needs and opportunities. 1 petabyte = 80,000,000,000 file drawers Increased Data

There are currently over 200 petabytes of information on distributed networks in the world. Each petabyte is the equivalent of 1,000 terabytes. One terabyte holds the equivalent of the information that would be stored in 40 million two-drawer file cabinets. That equals enough information to fill 16 trillion file drawers. Or at least it was at last count. By the time you read this page, enough data will have been generated to fill another 600,000 drawers. Increased Capacity

Given the tidal wave of data being generated today, what was once a manageable annoyance has now become a beastly burden. Total disk capacity shipped in calendar year 1995 was a mere 15 petabytes. In the year 2000, total disk capacity shipped is expected to exceed 400 petabytes. If stored on paper, that would equate to two trillion pounds, or the equivalent of a herd of 200 million lumbering elephants. By the year 2002, total disk capacity shipped is expected to reach 1,300 petabytes, equating to a compound annual growth rate of 90% since 1995.

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One of the factors driving the proliferation of data today is the fact that computer processing speeds are doubling every 18 months. In order to facilitate the rapid storage and retrieval of larger volumes of data, data transfer speeds also are increasing. For example, the transfer rate of tape drives is doubling every year, and is expected to increase from 12 MB/second in 1999 to over 160 MB/second in 2003 . . . faster than a speeding bullet! FOLLOWINGTHE WORLD TRADE CENTER BOMBINGIN NEW YORK CITY, OVER 50% OF THE BUSINESSES THAT DID NOT HAVE OFF-SITE DATA RECOVERY WENT OUT OF BUSINESS. AFTER THE SAN FRANCISCO EARTH- QUAKE, 60% OF THE BUSINESSES THAT COULD NOT RESTORE DATA IN TWO WEEKS FAILED. CHANCES ARE, HOWEVER, MOST BUSINESSES WON’T LOSE THEIR DATA TO A DISASTER. IN FACT, ODDS ARE CONSIDERABLY GREATER THAT DATA WILL BE LOST TO SIMPLE HARDWARE FAILURE OR POWER LOSS. AND PROBABLY AT THE WORST POSSIBLE TIME. CLEARLY, GIVEN THE POTENTIAL RISKS, RELI- ABLE STORAGE AND RETRIEVAL OF VITAL DATA IS ESSENTIAL IN TODAY’S

HIGHLY COMPETITIVE– 10 – BUSINESS WORLD. { 570,264,247,532,125,838,317,736,403,113,714,415,832,080,779,418,009 yottabytes, protected } ➛ ➛ To Our Shareholders

Frank R. Kirchhoff Robert J. Scroop VICE PRESIDENT OF SALES VICE PRESIDENT OF ENGINEERING

FISCAL YEAR 1999 HIGHLIGHTS

Revenues grew 23% to New OEM agreement Sales of DLTtape-based Multiple new products Storage Area Network Proprietary Variable $92.2 million, as net signed with Compaq LibraryXpress™ family introduced, including (SAN) initiative Rate Randomizer income increased to expected to drive of products up MinilibraryXpress™, launched with fibre (VR2)™ technology $4.0 million, up 48% revenue in fiscal year 41% over last year. EnterpriseXpress™ and channel connectivity. advanced with on a per share basis 2000, and beyond. Web TLC™. Tandberg and Imation. to $.37 per share.

Today’s rapidly changing dig- minicomputers. We then introduced a cost-effective high-performance technologies, is important to ital world is no place to stand still. the first truly desktop-based 9-track solution for workgroup storage needs, Overland as demand for our mature To continue Overland’s record of tape drive, and subsequently intro- as well as the EnterpriseXpress™, legacy products has declined. As we success, we must step out of our duced 18- and 36-track product lines. a modular system that meets the entered fiscal year 2000, for example, comfort zone and challenge who we In the mid-1990s, with the advent of needs of the enterprise environment our mature 9-track and 18-track are and what we do. That is the spirit the highly popular DLTtape technol- with up to seven terabytes of capac- products had been fully phased out. of this year’s annual report. While ogy, we were one of the first distri- ity. We also introduced Web TLC™ In addition, while sales of our fiscal year 1999 was a very successful butors of DLTtape drives. We then (Total Library Control), a software- 36-track products were up 24% year for Overland, highlighted by introduced the revolutionary modular embedded product that enables during fiscal year 1999 due to OEM record revenues and net income and LibraryXpress™, the first truly scala- remote operation and management demand, we anticipate that overall by the signing of a major new OEM ble library that allows users to of our tape libraries and autochang- market demand for these products agreement with Compaq Computer expand their storage capacity and ers from anywhere in the world using will decline in the future as they Corporation, we recognize that we performance as their needs grow. any Internet browser, and we continue to mature. More recently, we developed our must continue to “think outside embarked on fibre channel connec- New Technologies the box” if we are to remain a proprietary Variable Rate Randomizer tivity and Storage Area Network (SAN) Fundamental to new product develop- market leader. (VR2)™ data encoding technology initiatives centered around our ment, of course, is the development that significantly increases the native award-winning DLTtape libraries and A History of Innovation and adoption of new technologies. capacity and performance of existing autoloaders. These initiatives enable Overland’s significant capabilities in Throughout our history, Overland has linear tape technologies without us to capitalize on the emerging SAN been an innovative, forward-looking software, firmware, mechanical, requiring any changes to tape heads and Network Attached Storage (NAS) company. Over the years, we have electrical, and interface technolo- and media. opportunities. brought multiple “firsts” to the gies, coupled with real-world appli- storage industry. In the 1980s, we Innovative New Products During fiscal year 1999, 63.4% of cations testing, enables us to deliver pioneered the PC-based data inter- Today, the same creative drive and Overland’s revenues were from sales products that consistently exceed change market and developed the spirit that led to these and other of our DLTtape-based family of prod- customer expectations. This ability is first controller card and software industry advancements is alive and ucts, up from 56.5% in the prior year. demonstrated in our breakthrough that allowed personal computers to well at Overland. In fiscal year 1999 Growth in sales of DLTtape-based VR2 technology, introduced in connect to 9-track tape drives and we introduced several new products, products, as well as future sales of December 1997. VR2 can enable exchange data with mainframes and including the MinilibraryXpress™, products based on alternative storage linear tape drive manufacturers to W. Michael Gawarecki Teresa L. Baltao Martin D. Gray VICE PRESIDENT OF OPERATIONS DIRECTOR OF HUMAN RESOURCES CO-FOUNDER AND CHIEF TECHNICAL OFFICER

decrease time to market for next- New Distribution Partners “We plan to achieve continued growth by generation tape drives by extending In addition to our technology part- their current product lines without nerships with Tandberg and Imation, substantial investment in engineer- we continue to build valuable rela- introducing new products and technologies, by ing or increase in cost. In April tionships with channel partners that 1998, Tandberg Data ASA of Oslo, will provide increased distribution Norway became the first to license support to Overland’s products. It is establishing additional distribution partnerships, the technology for incorporation our intent to enhance the Overland into its products and has since made brand through the commercial distri- and by pursuing potential strategic initiatives considerable progress on its devel- bution channel to complement our opment program. In fiscal year 1999 strong OEM business. In early July, we announced a license agreement we announced the addition of Ingram targeting emerging storage market opportunities.” with Imation to bring VR2 to the Micro as a major commercial distribu- Travan NS tape platform, leading to tion partner for Overland, adding to the generation of VR2-based rev- our existing partnerships with Tech enues for the first time. We currently Data and Bell Microproducts. Our 1998 vs. 14.3% for IBM, 11.6% for we did not supply to DEC. That is expect to generate an on-going field sales force continues working to EMC and 7% for SUN. Compaq also significant because the scalable stream of royalty and chip sale expand the universe of storage inte- has the number one position in the architecture is one of the key value- revenue from VR2 by the end of grators and value-added resellers who mid-range server market. Its ProLiant added features of our LibraryXpress calendar year 1999. serve our end-user customers. line of servers, for example, has an product line. The third and most In addition to our VR2 development New OEM Agreement with Compaq installed base of approximately two significant way in which this agree- programs, we are building on our million units, and Compaq’s goal is to ment expands our relationship with A major event in fiscal year 1999 technical capability to deliver robotics be number one in tape automation in Compaq is that it adds the full was the signing of our new agree- for alternative storage formats. We that market. Compaq field sales force to the for- ment with Compaq. Under this agree- have now introduced a SLR loader mer DEC sales channel, and the prod- ment, we are supplying to Compaq The Compaq agreement expands on product which is sold on an OEM basis ucts will be supported on the full line our LibraryXpress family of four our previous OEM relationship with to Tandberg, and are preparing to of ProLiant servers. DLTtape-based products, including Digital Equipment Corporation (DEC), come forth in the near future with both the DLT 4000 and 7000-based acquired by Compaq in 1998, in three We view our OEM agreement with products based on AIT (Sony), SDLT LibraryXpress. These products are (Quantum) and LTO (IBM, HP and ways. First, it adds our DLT 4000- Compaq as a significant endorsement being private labeled by Compaq and Seagate) tape drives. We also have based LibraryXpress, which we did not of the quality of our products and are marketed as scalable storage acquired optical storage robotics supply to DEC. That in itself should be the strength of our positioning in solutions in support of the Compaq technology. As a result, we believe we significant because Compaq is the the marketplace. We are working line of ProLiant™ servers for the are well-positioned to take advantage number one seller of DLTtape drives with Compaq in a mutually supportive entry-level and departmental storage of emerging opportunities in the mar- in the world today and a large por- manner in order to maximize the automation markets. ketplace, and plan to support that tion of DLTtape drives sold by Compaq potential of our relationship. Compaq positioning with continued invest- Compaq is number one in the storage are 4000s. Second, the agreement is providing considerable support ments in research and development. market today, with 22.6% share in adds the scalable building blocks that to its server storage product line Steven E. Richardson Vernon A. LoForti VICE PRESIDENT OF MARKETING VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

“We expect the signing of our OEM agreement As we look ahead to fiscal year 2000 and beyond, we believe we are well- positioned for growth. We continue to with Compaq Computer Corporation to make a benefit from growing sales of our DLTtape-based products. Our OEM relationships are growing well, and very significant contribution to our financial our expanding distribution channel program is expected to support sales of our present and future product results in fiscal year 2000 and beyond.” lines. New products based on DLTtape and new technologies for Overland should expand our presence as an industry leading provider of automa- through extensive marketing and time, we plan to pursue additional tion solutions. And, through more technical support information pro- growth opportunities with strategic aggressive participation in the vided on its Internet site, and initiatives targeting emerging storage commercialization of VR2, we plan to through an aggressive advertising market areas. bring value conscious options to the campaign emphasizing its strong In the past, Overland has focused tape backup market. As a result, we position in the storage market and primarily on the mid-range segment are optimistic about our outlook for its commitment to that market. In of the data storage market. Demand the future. addition to Compaq’s marketing for data storage is growing rapidly efforts, Overland is hard at work to On behalf of the entire Overland at all levels of the market, however, ensure that these new products are management team, we thank our from the high-end enterprise level to well-supported. Compaq has applauded employees for their significant con- the entry-level workgroup and SOHO our efforts in this regard as exem- tributions over the past year and for market. As a result, we see signifi- plary. We are excited to add Compaq their continued dedication going cant potential for Overland outside to our existing base of OEM cus- forward. We also express our appre- of our core market, and plan to tomers, including IBM, Siemens, ciation to our development and distri- migrate further from the mid-range Groupe Bull, NCR and Intergraph, bution partners for their vote of segment in pursuit of additional each of which contributed to our confidence in our ability to execute, market opportunities. Our entry into success in fiscal year 1999. and to our investors for their contin- the enterprise market in fiscal year ued support and interest in Overland. Future Outlook and Strategy 1999 offers initial evidence of this We are pleased with our record per- strategy. We also are targeting addi- Sincerely, formance in fiscal year 1999, and tional geographic markets, specific with the market’s continued strong vertical market applications, and acceptance of our growing line of new distribution channels that could award-winning DLTtape-based enable us to access additional end- Scott McClendon LibraryXpress products. At the same user customers. PRESIDENT AND CHIEF EXECUTIVE OFFICER Financial Highlights

($ in millions)

($ in thousands) 100 92.2

4,500 90

3,982 4,000 80 75.2

3,500 70 Revenues Net Income 3,100

59.1 3,000 60 2,792

47.2 2,500 50 2,162

2,000 40 38.2

1,500 30

1,000 20 501 500 10

1995 1996 1997 1998 1999 1995 1996 1997 1998 1999

Overland Data, Inc. Years Ended June 30 1995 1996(A) 1997 1998 1999 Operations ($000) Net sales $38,156 $47,226 $59,146 $75,164 $92,227 Gross profit 11,115 16,081 20,371 23,199 27,891 Research and development 3,076 3,697 4,125 4,093 5,373 Operating income 980 3,541 4,736 3,640 5,614 Interest and other income, net (210) (128) 251 903 967 Pretax income 770 3,413 4,987 4,543 6,581 Net income 501 2,162 3,100 2,792 3,982

Asset Management ($000) Cash and equivalents $ 101 $ 19 $18,926 $15,550 $16,199 Receivables 6,300 7,226 11,151 15,683 13,885 Inventories 5,356 8,425 12,101 16,077 17,704 Working capital 6,430 10,307 36,733 39,498 40,981 Fixed assets 2,062 2,128 3,499 4,207 4,657 Capital expenditures 670 841 2,308 2,088 1,914 Depreciation/amortization 725 862 1,050 1,479 1,462 Total assets 14,453 19,771 48,260 53,996 56,230 Long-term debt 1,400 1,500 — — — Shareholders’ equity, including preferred stock 7,334 11,058 40,317 43,368 44,807

Performance Indicators Gross margin 29.1% 34.1% 34.4% 30.9% 30.2% Operating return on sales 2.6% 7.5% 8.0% 4.8% 6.1% Pretax return on sales 2.0% 7.2% 8.4% 6.0% 7.1% Net return on sales 1.3% 4.6% 5.2% 3.7% 4.3% Return on average equity 7.1% 23.5% 12.1% 6.7% 9.0% Return on average capital employed 6.2% 20.3% 11.7% 6.7% 9.0% Average receivable days 52 52 57 65 59 Inventory turns 4.9 4.5 3.8 3.7 3.8

Share & Per Share Information (000 except per share amounts) Number of shares outstanding at year-end 6,946 7,399 10,435 10,549 10,090 Shares used in computing net income per share 7,412 7,666 9,294 11,069 10,652 Net income per share (diluted) $ 0.07 $ 0.28 $ 0.33 $ 0.25 $ 0.37 Equity per share at year-end $ 1.06 $ 1.49 $ 3.86 $ 4.11 $ 4.44 Ending cash and equivalents per share $ 0.01 $ 0.00 $ 1.81 $ 1.47 $1.61

(a) Fiscal 1996 net income, net return ratios and earnings per share data exclude the effect of a non-recurring income tax credit of $997,000

Note: The financial charts on this page use a visual play on the scalability of overland products, and are not intended to show the actual potential configuration of those products. :

Overland Data offers a full line of innovative tape loaders and libraries designed to meet a wide array of storage needs, ranging from entry-level applications to departmental and enterprise-level environments. Overland has an installed base of over 50,000 systems worldwide and all products are fully compatible with all popular software and major operating systems. The Company’s products have received multiple major industry awards, and are backed by unmatched warranty programs and an outstanding history of product reliability.

DLT™ LIBRARYXPRESS™ DLT ENTERPRISEXPRESS™ DLT ENTERPRISEXPRESS TAPEXPRESS™ The The revolutionary, award- A high-capacity and per- Configured with 2 to 6 TapeXpress family offers a winning DLT LibraryXpress formance library that drives, a four-high complete line of IBM- has set new standards in meets enterprise-wide EnterpriseXpress is compatible tape drives for me for this discussion that the human brain contains expandable, modular storage needs. Available designed for users with 3480/3490/3490E systems. DLTtape libraries, providing with 2 to 12 DLTtape storage needs not The T490E offers single hly 600 sexdecillion yottabytes) in the human brain. the most options for drives, modular scalability expected to exceed 4 TB. tape 18- and 36-track capacity, performance and enables library to expand Like the seven-high read/write and inter- growth of any DLTtape to 7 TB of capacity and EnterpriseXpress, the change; proven to deliver library available. The 360 GB/hour performance. four-high model is a self- fast, efficient storage exclusive SmartScale Field-proven reliability with contained modular unit for retrieval. The L490E is the Storage® design enables redundant robotics pro- increased convenience. first mini-library to read expansion up to 9 TB of vides maximum up-time and write both 18- and capacity with native trans- and low cost of ownership. 36-track formats. With an fer rates of up to 288 One U accessory slot allows integrated 10-cartridge GB/hour. flexible addition of SAN robotic mechanism, the WEB TLC™ connectivity equipment. Web TLC L490E is available in a enables remote manage- enterprise / mainframe tower, desktop or rack- ment of Overland DLTtape mount configuration. loaders and libraries from anywhere in the world, helping to improve produc- nd the synapse differ in that where the bit has only two possible responses to a stimuli, tivity and save resources. The product operates in any server environment DLT LIBRARYXPRESS The scalability DLT LIBRARYXPRESS BASE MODULE MINILIBRARYXPRESS™ and with any standard of the LibraryXpress allows cus- Ideal for organizations seeking a Overland’s MinilibraryXpress is Web browser. A simple tomized configurations to meet indi- product that can grow with their designed for servers and networks graphical user interface vidual backup and storage needs and needs and protect their original with between 50 and 200 GB of enables the operator to continues to meet those needs as investment, a single entry-level disk capacity. With native perform- perform any function nor- they change. For example, a four- LibraryXpress Base Module provides ance of 36 GB/hour and a 600 GB mally done at the library high LibraryXpress configured with up to 700 GB storage capacity. storage capacity, it is an ideal and or loader front panel. 2 to 6 drives would be suitable for Featuring 1 or 2 DLTtape drives and cost-effective solution for work- all segments users with storage needs under 4 TB. a 10-cartridge removable magazine, group storage needs. Offering 1 or the Base Module can be desktop or 2 DLTtape drives, and a removable SAN READY SOLUTIONS mid-range rackmount configured, and can 15-cartridge magazine, the Overland loaders and be combined with other modules to MinilibraryXpress provides out- libraries are available with provide up to 9 TB total capacity. standing performance and value. a Storage Area Network (SAN) ready option which

provides fibre channel to equals one bit, and one byte equals eight bits, then we use this calculation to suppose the number of bytes in the human brain SCSI connectivity. SAN ready solutions are inter- operable with most leading software and hardware DLT LOADERXPRESS™ DLT 4000/7000/8000 products that enable LAN- Overland has redefined entry-level These stand-alone DLTtape drives free backup/restore and storage automation with the offer the superior performance and sharing of Overland loaders LoaderXpress, providing the produc- reliability needed to meet the and libraries amongst tivity, security and reliability of demands of shrinking backup multiple servers. more expensive tape libraries at a windows. This single cartridge drive cost comparable to a stand-alone offers 20 to 40 GB native capacity in DLTtape drive. LoaderXpress com- a unit designed for convenient, bines one DLT4000 or 7000 drive reliable network backup and restore.

low-range with up to 10 cartridges, and is designed to back up environments for a full week or up to 2 months without operator intervention. e made an educated guess based on a general approximation of the number of synapses an adult human brain might hold. If we assu bytes = one yottabyte, so we can calculate 570,264,247,532,125,838,317,736,403,113,714,415,832,080,779,418,009 yottabytes (roug

www.overlanddata.com 24 To find up-to-date information about Overland’s products, locations, operations, investor information and press releases, visit our web site. ion synapses. If we say that one synapse equals one bit then we might say the brain holds 150 trillion bits. However, the bit a

Corporate Directors Corporate Offices Shareholder Information

Scott McClendon Overland Data, Inc. Annual Meeting of Shareholders Investor Information President and CEO 8975 Balboa Avenue The annual meeting will be held at Overland Data’s filings with the Overland Data, Inc. San Diego, CA 92123-1599 9:00 a.m. on Monday, November 8, Securities and Exchange Commission Director since 1991 USA 1999, at Overland Data Corporate are available, free of charge, upon Martin D. Gray Toll Free: 800-729-8725 Headquarters in San Diego, CA. request to the Investor Relations Co-Founder and Tel: 858-571-5555 Department or through Overland Chief Technical Officer Fax: 858-571-0982 Stock Information Data’s web site. They are also avail- Overland Data, Inc.

Tech Support: 858-495-4280 Overland Data’s Common Stock is able through SEC’s EDGAR site on the , 50 immediately surrounding synapses, increasing the number of possible responses to 50 factorial. If each synaptic connection Director since 1980 E-mail: [email protected] traded on the National Market System internet at http://www.sec.gov or William W. Otterson Web: www.overlanddata.com of the National Association of through links on the Company’s Executive Director Securities Dealers Automated home page. UCSD CONNECT Program Overland Data (Europe), Limited Quotation System (Nasdaq) under Director since 1982 EMEA Office the symbol “OVRL.” Important Notice Unit 3, Ashville Way Overland Data’s Annual Report on Form 10-K Peter Preuss for the year ended June 30, 1999 is enclosed Wokingham, Berkshire Transfer Agent and Registrar President herewith and contains additional information Preuss Foundation RG41 2PL, England Norwest Bank Minnesota, N.A. about the Company’s business, including its Director since 1998 Tel: +44 (0) 118-9898000 Shareholder Services Division financial statements, and constitutes an integral part of this 1999 Annual Report to Fax: +44 (0) 118-9891897 161 North Concord Exchange John A. Shane Shareholders. This Annual Report contains President E-mail: [email protected] South St. Paul, Minnesota 55075 certain statements of a forward-looking Palmer Service Corporation 800-468-9716 nature relating to future events or the future Director since 1992 Overland Data, SARL performance of the Company. Prospective investors are cautioned that such statements Southern Europe Office Independent Accountants are only predictions and that actual events or Immeuble Le Magellan, CE202 PricewaterhouseCoopers LLP results may differ materially. In evaluating 7 Rue Montespan 750 B Street, Suite 2400 such statements, prospective investors should specifically consider various factors identified 91024 EVRY Cedex San Diego, California 92101 in the Form 10-K, including the matters set France forth therein under the caption “Risk Factors,” ) = 570,264,247,532,125,838,317,736,403,113,714,415,832,080,779,418,009,000,000,000,000,000,000,000,000 bytes. 10 Tel: +33 (0) 1 60 87 20 60 Outside Legal Counsel which could cause actual results to differ Fax: +33 (0) 1 60 87 20 65 Baker & McKenzie materially from those indicated by such forward-looking statements. While science has never actually established the amount of memory the human brain can hold in a number of bits or bytes, we hav

Designed and Produced by Mentus, Inc., San Diego, CA E-mail: [email protected] 101 West Broadway, 12th Floor San Diego, California 92101 8 A note on the cover image: (150,000,000,000,000 x 50! 150 billion neurons and each neuron contains an average of 1,000 synapses, then we can calculate that the brain holds 150 trill 1 or 0, yes or no, the synapse can send a ”current” to any combination of, at the very least *