Adaptec Enters High-speed Networking Market with ATM Products

Aggressive Strategy for ATM Builds on Adaptec's Engineering and
Manufacturing Leadership in I/O Hardware and Software

Milpitas, Calif. - February 6, 1995 - Adaptec (NASDAQ:ADPT) announced today
that it will leverage its leadership in I/O technology to penetrate the
high-speed networking market. Adaptec introduced ten new network interface
cards (NICs) that allow desktop computers and departmental servers to link
to corporate computing resources and the enterprise network backbone --
all with the scalability and performance advantages of asynchronous
transfer mode (ATM) technology. Adaptec's new ATM NICs support 25 Mbps and
155 Mbps for the Desktop line and 155 Mbps for the Server/High Performance
line.

These first ATM products are from Adaptec's InterNetworking Technology
(INTO) business unit and mark a long-term strategy to relieve networking
bottlenecks for desktop computers and network servers. Relying on its
world-class ASIC, engineering and software development resources,
Adaptec's NIOBE (network input/output bottleneck eliminator) family of
NICs is a complete set of hardware and software solutions.

"For the past 10 years, Adaptec has successfully solved storage
bottlenecks," said John Adler, chairman and CEO of Adaptec. "The
proliferation of compound documents and multimedia applications plays
right into our strengths: relieving the bottlenecks that have inhibited
users from receiving information as efficiently as possible to their
desktops. Given the steep growth trajectory for bandwidth-intensive
applications over the network, our new NIOBE family of ATM NICs
strategically positions Adaptec as a major force in the high-speed
networking market."

The ATM NIC Market

The market research firm In-Stat expects the ATM NIC market to grow to more
than $500 million in 1998 -- with a compound annual growth rate in excess
of 150 percent. Applications expected to fuel this growth include CAD/CAM,
distributed databases, teleradiology, desktop videoconferencing, imaging
solutions and multimedia content creation.

"ATM delivers enormous quantities of bandwidth for users today, while
serving as a launching pad for the exciting new video-oriented
applications that will traverse the LANs and WANs of business and
academia," said F. Grant Saviers, Adaptec's president and COO. "ATM is the
future of networking. We are making ATM affordable by leveraging Adaptec's
technology and interoperability skills. Our strategy is to aggressively
implement the ATM Forum standards."

Taking Advantage of Core Competencies

"In addition to standards-based interoperability, there are five crucial
keys to success in the ATM market," said Saviers.

"The first is ASIC expertise. Adaptec's custom silicon expertise allows us
to improve NIC performance while lowering costs. Second is software. The
value added by Adaptec's IOware solutions is heavily based on developing
and integrating system-based, network-oriented applications software and
device drivers. Third is strategic relationships with operating system
developers, which Adaptec has enjoyed for years. Fourth is manufacturing
the adapters. Adaptec is already a high-quality, high-volume, low-cost
manufacturer of a wide variety of host adapters. Fifth is distribution.
Adaptec's distribution channels are firmly in place and extend to all
major OEMs, VARs, system integrators and traditional resellers," adds
Saviers.

Saviers concluded, "Adaptec has been active in ATM development for well
over a year. In addition to the products being announced today, we are
also pleased to note significant ATM development relationships with DEC
and IBM. Adaptec is definitely in the right place at the right time."

Introducing the NIOBE Family of ATM NICs

The NIOBE ATM NICs will be available in three product lines: the
Server/High-Performance line, the PowerDesktop line and the Desktop25
line.

The Server/High-Performance NICs are designed for enterprise network
servers and corporate computing resources. The PowerDesktop line is
designed for departmental servers and workstations. The Desktop25 line
satisfies the demands of decision-support systems, including the new
Pentium and PowerPC systems as well as 486-based computers.

Adaptec, Inc. (NASDAQ:ADPT), designs, manufactures and markets IOware(tm)
solutions to eliminate performance bottlenecks between microcomputers,
networks, and peripherals. Solutions range from simple connectivity
products for single-user and small-office desktops, to intelligent
subsystem, high-performance SCSI, RAID and ATM products for
enterprise-wide computing and networked environments. Adaptec I/O
solutions are incorporated into the products of virtually all the major
computer and peripheral manufacturers around the world.

Founded in 1981 and headquartered in Milpitas, Calif., Adaptec is a
recognized market leader in high-performance I/O technology. Adaptec
currently employs approximately 1,700 people, and with its global
distribution network, serves customers worldwide.

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