Qualstar Announces the Results of 2013 Annual Meeting of Shareholders

SIMI VALLEY, CA–(Marketwired – Jul 1, 2013) – Qualstar
Corporation (
NASDAQ:
QBAK), a manufacturer of data storage
solutions and high-efficiency power supplies, today announced the
results for its 2013 Annual Meeting of Shareholders held Friday,
June 28, 2013. Based on information provided by the independent
inspector of election, IVS Associates, Inc., shareholders have
voted to elect Steven N. Bronson, Alan B. Howe, Sean M. Leder, Dale
E. Wallis and David J. Wolenski as members of the Qualstar Board.
Bronson, Howe, Leder, Wallis and Wolenski were nominated by BKF
Capital Group, Inc. which, as the holder of 18.3% of Qualstar’s
common stock, is the company’s second largest shareholder.

“As we move past a contested election for representation on the
Qualstar Board of Directors, we welcome Steven Bronson, Alan Howe,
Sean Leder, Dale Wallis and David Wolenski to the Qualstar Board. I
look forward to working collaboratively to ensure a smooth board
transition,” said Lawrence D. Firestone, Qualstar’s President and
Chief Executive Officer. “We can now focus our full attention to
our ongoing efforts to transform Qualstar and position it for
long-term growth, sustainable profitability, market leadership and
enhanced value for our shareholders. I would like to thank all of
our departing directors for their service, dedication and
commitment to Qualstar. I am particularly grateful to Allen Alley
for his exemplary leadership as our independent Chairman of the
Board.”

Qualstar also announced that information provided by the
independent inspector of election indicates that shareholders
appear to have voted to (i) not ratify the adoption by the Qualstar
Board of the Rights Agreement, dated February 5, 2013, by and
between Qualstar and Corporate Stock Transfer, Inc., as Rights
Agent, (ii) approve the amendment and restatement of the Qualstar
Corporation 2008 Stock Incentive Plan, and (iii) approve the
appointment of SingerLewak LLP as the independent registered public
accounting firm to audit Qualstar’s financial statements for the
fiscal year ending June 30, 2013.

These results are based on the receipt of the official
confirmation by the independent inspector of elections which was
received earlier today.

About Qualstar Corporation

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

Cautionary Statement Concerning Forward-Looking
Statements

This press release contains forward-looking statements relating
to expectations, plans or prospects for Qualstar Corporation that
are based upon the current expectations and beliefs of Qualstar’s
management and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements.
Notwithstanding changes that may occur with respect to matters
relating to any forward looking statements, Qualstar does not
expect to, and disclaims any obligation to, publicly update any
forward-looking statements whether as a result of new information,
future events or otherwise. Qualstar, however, reserves the right
to update such statements or any portion thereof at any time for
any reason. In particular, the following factors, among others,
could cause actual or future results to differ materially from
those suggested by the forward-looking statements: Qualstar’s
ability to successfully execute on its strategic plan and meet its
long-term financial goals; Qualstar’s ability to successfully
implement and recognize cost savings; Qualstar’s ability to develop
and commercialize new products; industry and customer adoption and
acceptance of Qualstar’s new products; Qualstar’s ability to
increase sales of its products; the rescheduling or cancellation of
customer orders; unexpected shortages of critical components;
unexpected product design or quality problems; adverse changes in
market demand for Qualstar’s products; increased global competition
and pricing pressure on Qualstar’s products; and the risks related
to actions of activist shareholders, including the amount of
related costs.

For further information on these and other and other cautionary
statements, please refer to the risk factors discussed in
Qualstar’s filings with the U.S. Securities and Exchange Commission
including, but not limited to, Qualstar’s Annual Report on Form
10-K for the fiscal year ended June 30, 2012, the “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of such Form 10-K, and any subsequently filed
reports. All documents also are available without charge through
the SEC’s website (
www.sec.gov) or from Qualstar’s
website (
www.qualstar.com).