Exhibit 99.2


               [Letterhead of Advanced Digital Information Corp.]


November 1, 2005



Board of Directors

Overland Storage Inc.
4820 Overland Avenue
San Diego, California 92123

Dear Board of Directors:

On October 13, 2005, the Board of Directors of Overland Storage, Inc. and a
Special Committee of the Board refused to discuss our October 11, 2005 proposal
to acquire 100% of Overland's common stock for $7.90 per share in cash. This
followed a rejection by Overland in September of an earlier invitation from us
to meet regarding a possible combination.

Last week, Overland reported disappointing margins and modest sequential growth
of REO product sales for the first quarter of fiscal 2006. We expected a
proportionate increase in branded product sales to yield greater margin
improvement, and we expect that any new library OEM (i.e., non-branded) business
Overland might secure in the future is not likely to enhance margin. REO
disk-based sales, after adjusting for year-end backlog, appear to have stagnated
at $3-$3.3 million over each of the past three quarters and remain well short of
the $20 million rate forecast for fiscal 2005 in your 2004 Annual Report on Form
10-K.

Our proposal represents an 18% and 85% premium to your equity and enterprise
value, respectively, based on your share price of $6.69 as of the close of
trading on August 18, 2005, the last trading day before our intentions and
purchases of your stock became public. Since then, the median analyst estimate
for Overland's fiscal 2006 earnings has declined from an expected loss of 13
cents per share to an expected loss of 33 cents per share. We believe your
shareholders would welcome a strategic transaction between our two companies.

We are prepared and eager to meet with you any time to seek a friendly agreement
and to identify any basis justifying additional consideration. We urge you to
respond constructively.

Sincerely,

/s/ Peter van Oppen

Peter van Oppen
Chair
Chief Executive Officer