EXHIBIT 99.2

FOR IMMEDIATE RELEASE

Contact:       Jack Jaiven, Vice President/Treasurer
               nStor Technologies, Inc.
               Tel  561.640.3105
               E-mail:  jack@cenrec.com

          nStor's Largest Shareholders Agree to Convert Debt to Equity

Carlsbad, CA - April 1, 2003 -- nStor Technologies, Inc. (AMEX: NSO) has reached
an agreement with its two largest  shareholders to convert Company debt, held or
controlled by them, into shares of nStor common stock.

Thomas Gruber, nStor's Acting President and Chief Financial Officer, stated that
"privately  held  Halco  Investments,  L.C.,  controlled  by  Maurice  Halperin,
Chairman of our Board of Directors,  has agreed to immediately  convert its $3.1
million note, plus $200,000 of accrued interest, into 11,015,048 shares of nStor
common  stock,  based on a  conversion  price of $.30 per share.  As our largest
shareholder,  Halco  recognized  the  importance of improving our net worth at a
time when several large international  companies have chosen nStor's new storage
solutions."

The Company  also  announced  that H. Irwin Levy,  its Vice  Chairman  and Chief
Executive Officer, has committed that by June 30, 2003, at the request of nStor,
he will convert sufficient debt owed by nStor to entities controlled by Mr. Levy
into shares of nStor common  stock,  to cause the  Company's  net worth to be at
least $6 million.

"Mr. Levy's commitment and Halco's debt conversion will strengthen our financial
position and satisfy the continued  listing  requirement  of the American  Stock
Exchange," Mr. Gruber added.

About nStor
Headquartered in Carlsbad, California, nStor Technologies,  Inc. operates in two
business segments:

nStor Corporation, Inc. designs, develops and manufactures external data storage
solutions,   including  high  density  storage  enclosures,  storage  management
software and its recently announced Wahoo controller  technology.  The Company's
product  lines  support a variety of  operating  systems  including  Windows NT,
Windows  2000,  Unix,  Macintosh  and  Linux.  Designed  for  storage  intensive
environments  and  mission-critical  applications,  the  Company's  products are
offered in various  architectures  including  Fibre Channel,  Fibre-to-SCSI  and
SCSI.  nStor  markets  its  products  through a direct  sales force and a global
network of reseller and OEM  partners.  Additional  information  can be found by
visiting nStor's web site at www.nstor.com.

Stonehouse  Technologies,  Inc. is a provider of telecommunication  software and
services  that help large  enterprises  manage  their  communications  expenses,
assets and processes.  These solutions  include a suite of modular  applications
and  consulting  services,  which allow  enterprises  to manage voice,  data and
wireless  services  by  providing  a  systematic   approach  to  automate  order
processing,  monitor expenses, manage vendor invoices, track asset inventory and
allocate costs. Additional information can be found by visiting Stonehouse's web
site at www.stonehouse.com.

This press release  includes  statements  that may constitute  "forward-looking"
statements,  usually  containing the words  "believe",  "estimated",  "project",
"expect",  "anticipate",  or  similar  expressions.  These  statements  are made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform Act of 1995.  Forward-looking  statements  inherently  involve  risks and
uncertainties  that could cause  actual  results to differ  materially  from the
forward-looking  statements.  Factors  that would  cause or  contribute  to such
differences include, but are not limited to, the Company's inability to increase
sales to current customers and to expand its customer base, continued acceptance
of the Company's products in the marketplace, the Company's inability to improve
the  gross  margin  on  its  products,   competitive  factors,  dependence  upon
third-party  vendors,  outcome of  litigation,  and other risks  detailed in the
Company's  periodic report filings with the Securities and Exchange  Commission.
By making these forward-looking statements, the Company undertakes no obligation
to update  these  statements  for  revisions  or changes  after the date of this
release. nStor is a registered trademark of nStor Technologies, Inc.