ADIC First-Quarter Earnings Grow 42 Percent to $2.4 Million, or 24 Cents Per Share, On Improved Product Mix.

REDMOND, Wash.--(BUSINESS WIRE)--Feb. 23, 1998--

Library Products Grow as Low Margin Business Shrinks

ADVANCED DIGITAL INFORMATION CORPORATION (NASDAQ/NMS: ADIC) today announced earnings grew 42 percent to $2.4 million, or 24 cents per share, on sales of $22.9 million for the first quarter ended Jan. 31, 1998.

Revenue grew by approximately 14 percent over first quarter 1997, during which the company earned $1.7 million on sales of $20.1 million.

"We are delighted to report another strong quarter as our sales of automated tape libraries continue to grow at rates above the 30-50 percent annual range which is estimated to be the market growth rate," said Chairman and Chief Executive Officer Peter van Oppen. "Unlike recent quarters, however, our overall growth rate has been dampened by a decline in sales of relatively low margin standalone tape drives which has resulted in lower revenue with improved profit margins," he said. The company noted that percentage gross margin, operating margin and net margin for the quarter were all at the highest levels in more than two years.

Company President and Chief Operating Officer Chuck Stonecipher noted that the recently introduced FastStor product is "a pioneering DLT-based tape system which appears to be off to a very strong start in the marketplace. We have experienced the most rapid acceptance in memory, including considerable interest among potential OEM partners."

"In addition," he noted, "our new Fibre Channel router products are generating a great deal of activity as Fibre Channel technology continues to be adopted by major vendors in the storage network marketplace."

The company said it did not experience shortages of tape drives during the quarter and that wide availability of drives may, in fact, have caused a short term negative effect in its markets. Safety stocks and inventory in the distribution channel, built up during times of scarcity, were reduced during the period and appear to have supplanted new demand. The company does not expect such an effect to persist. It was also noted that the first quarter typically reflects seasonal softness in revenues.

Headquartered in Redmond, Washington, ADVANCED DIGITAL INFORMATION CORPORATION has been providing data storage solutions since its founding in 1983. With an installed base of over 25,000 libraries, ADIC is a leading provider of automated tape libraries used to backup and archive electronic data in client/server network computing environments. ADIC products are available with DLT (a trademark of Quantum Corp.), AIT (Sony), 4mm and 8mm tape drive technologies and are supported by leading suppliers of backup and storage management software products. During 1997, ADIC became a minority investor in Fibre Channel architecture pioneer Crossroads Systems Inc. and introduced a family of Fibre Channel routers for use in Storage Area Networks. ADIC maintains sales offices throughout North America and Europe with established reseller channels around the world. Further product information is available via the Internet at http://www.adic.com. -0-

               ADVANCED DIGITAL INFORMATION CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (In thousands, except for per-share amounts)

                                 Three months ended Jan 31,
                                        (Unaudited)

                               1998                   1997

Net sales                   $  22,866              $  20,069
Cost of sales                  15,451                 14,098
Gross profit                    7,415                  5,971
Selling and
  administrative expenses       3,783                  3,047
Research and
  development expenses            618                    632
Operating profit                3,014                  2,292
Other income                      561                    254
Income before provision
  for income taxes              3,575                  2,546
Provision for income taxes      1,213                    885
Net income                   $  2,362              $   1,661
Basic net income per share   $   0.24              $    0.21
Diluted net income per share $   0.24              $    0.20


                ADVANCED DIGITAL INFORMATION CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands)



                                  Jan 31, 1998         Oct 31, 1997
                                  (Unaudited)

                                                ASSETS
Current assets:
   Cash                               30,816               32,807
   Accounts receivable, net           15,976               18,078
   Inventories, net                   21,868               16,075
   Other current assets                1,541                1,483
      Total current assets            70,201               68,443
Property, plant and equipment, net     2,703                2,509
Investment and other assets            4,207                4,242
                                      77,111               75,194

                               LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable                   10,850               11,237
   Other current liabilities           3,949                3,847
      Total current liabilities       14,799               15,084
Shareholders' equity                  62,312               60,110
                                      77,111               75,194

-0-

All forward-looking statements contained herein involve risks and uncertainties, including technical and competitive factors, which could cause results to differ materially. Such risks are detailed in ADIC's Form 10K and other documents on file with the SEC.

CONTACT: Peter van Oppen

Chuck Stonecipher

425/881-8004

www.adic.com