Friday, June 29, 2001

Ontrack appoints Ben Allen to the position of President and CEO

Minneapolis - June 28, 2001 - ONTRACK Data International, Inc. (NASDAQ: ONDI), a provider of data availability software and service solutions, today announced the promotion of Ben Allen from chief operating officer to the position of president and CEO. In Mr. Allen's new role, he will have overall responsibility for executing the Company's strategic initiatives and the day-to-day operations of the Company. Mike Rogers, the Company's former CEO and co-founder of Ontrack, will retain his position as chairman of the Board of Directors, focusing primarily on strategic relationships and enhancing shareholder value. Management also announced steps it has taken to realign expenses with revenue.

"We are taking advantage of our strong balance sheet and the current market environment to realign, streamline and prepare the Company for profitable growth in the future," said Rogers. "This is an excellent time to infuse the Company with new energy and address the issues facing our business. I am extremely confident in Ben's abilities, given his track record of driving revenue growth and increasing profitability in our UK/France operations. I look forward to supporting Ben in his efforts to do the same for Ontrack on a worldwide basis."

"Historically, Ontrack is a successful and profitable business and I am excited about the opportunity and optimistic about the future," commented Allen. "We are well positioned in several markets, each with significant long-term opportunity. Our challenge will be to execute flawlessly on our strategic initiatives over the next several quarters," Allen continued.

The Company also announced a workforce reduction of 52 employees, or approximately 12 percent of the Company's worldwide workforce, to realign expenses with revenue. The reductions are primarily in the Company's retail software business, which is caught in the industry-wide slowdown in retail software sales and in the Company's DataTrail™ business, which was built-up to support a revenue level that did not materialize in the current quarter, principally due to a reduction in merger and acquisition activity. The Company expects to save approximately $800,000 per quarter before taxes as a result of these actions. Management also expects to report a one-time expense relating to severance of the affected employees of approximately $850,000.

Mr. Allen added, "While we regret the workforce reduction, Ontrack has achieved measurable success in the quarter. Our DataTrailÔ marketing initiative has produced a number of interviews with reporters for top-tier law publications, major business press and radio stations. Our German and United Kingdom data recovery operations are expected to show solid revenue gains over the second quarter of last year and our domestic data recovery also is expected to post a quarter over quarter revenue gain.

Outlook
Ontrack continues to remain cautious regarding its future growth assumptions until economic and market conditions become more predictable. Based on the cost savings associated with the workforce reduction and market conditions, Ontrack expects to make corresponding adjustments to its outlook during its next quarterly conference call on July 25, 2001.

Allen emphasized, "Despite the current difficulty in near-term forecasting, we remain very confident about Ontrack's long-term prospects."

Conference Call and WebCast
Ontrack will discuss its second quarter 2001 results and current outlook during a conference call scheduled at 4:00 p.m. Central Time on July 25, 2001. The conference call can be accessed by dialing 888-343-7139 or on the Web at www.ontrack.com. A replay of the call can be accessed until August 1, 2001 by dialing 800-633-8284 (conference ID number is 19224079) or on the Web at www.ontrack.com.

About Ontrack
Ontrack provides data availability software and service solutions, helping customers protect, manage, recover and discover their valuable data. Using its hundreds of proprietary tools and techniques, Ontrack can recover lost or corrupted data from virtually all operating systems and types of storage devices through its do-it-yourself, remote and in-lab capabilities. Ontrack DataTrail™ electronic discovery solutions helps companies, law firms and federal agencies quickly and cost-effectively recover electronic information for use in legal matters. Ontrack also offers award-winning PC utility software programs and services to help prevent critical data loss through a broad line of problem-solving, file-management and productivity utilities. Ontrack can be reached through its World Wide Web site at http://www.ontrack.com or by calling 800-872-2599. In addition to its Minneapolis headquarters, Ontrack operates other locations in Los Angeles, Boulder, CO., Washington D.C., New York, London, Paris and Stuttgart. Ontrack also makes its data recovery services available in Tokyo through its strategic alliance with Y-E Data, a company with over 25 years of experience in storage devices.