ADIC Third Quarter Sales Grow 61 Percent as Earnings Reach $2.3 Million, or 23 Cents Per Share.

REDMOND, Wash.--(BUSINESS WIRE)--Aug. 20, 1997--

--INCOME GROWS 142 PERCENT OVER Q3 1996--

ADVANCED DIGITAL INFORMATION CORPORATION (NASDAQ/NMS Symbol: ADIC) today announced earnings of $2.3 million, or 23 cents per share, on revenues of $24.5 million for the third quarter ended July 31, 1997.

Sales grew by more than 61 percent over the same period a year ago, during which the company earned $933,000 on sales of $15.2 million.

For the first nine months of 1997, the company had earnings of $5.8 million, or 63 cents per share, on revenues of $66.6 million. Earnings were $1.9 million on revenues of $39.6 million for the first nine months of 1996.

"ADIC sales continued to show substantial growth during the third quarter and we are particularly pleased that revenues in each of the past two quarters have grown more than 60 percent over the same quarter in the prior year," said Chief Executive Officer Peter van Oppen. "We believe our growth is a reflection of ADIC's emergence as a predominant supplier of automated backup solutions in the rapidly-growing client/server network computing market," he noted.

The Company has experienced excellent support from major suppliers in its effort to sustain high levels of growth. Shortages of key tape drives, while always a potential risk, are not expected to be a major factor for the immediate future. As it has in previous quarters, the Company cautioned that the high sales growth rates it has experienced may not persist indefinitely as the market for its products matures.

ADIC has now reported four quarters as a separate public company since its spinoff from Interpoint Corporation in October 1996. The Company has earned $7.3 million, or approximately 81 cents per share, on sales of $86 million over the previous twelve months. Fiscal year results for the year ending October 31, 1997 are expected to be announced during the first two weeks of December.

Headquartered in Redmond, Washington, ADVANCED DIGITAL INFORMATION CORPORATION has been providing data storage solutions since its founding in 1983. It is a leading provider of automated tape libraries and standalone tape drives used to backup and archive electronic data in client/server network computing environments. ADIC products are available with DLT (a trademark of Quantum Corporation), AIT (Sony), 4mm and 8mm tape drive technologies and are supported by leading suppliers of backup and storage management software products. 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-

"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 March 12, 1997 Prospectus and other documents on file with the SEC." -0-

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


                Three months ended July 31,  Nine months ended July 31,
                        (Unaudited)                 (Unaudited)
                     1997          1996          1997        1996

Net sales        $   24,463    $   15,186    $   66,605  $   39,571
Cost of sales        17,397        10,932        47,057      28,588
Gross profit          7,066         4,254        19,548      10,983
Selling and
 administrative
 expenses             3,467         2,312         9,763       6,634
Research and
 development
 expenses               733           388         2,056       1,048
Operating profit      2,866         1,554         7,729       3,301
Other income
 (expense)              542          (128)        1,136        (369)
Income before
 provision
 for income taxes     3,408         1,426         8,865       2,932
Provision for
 income taxes         1,146           493         3,042         991
Net income      $     2,262    $      933    $    5,823  $    1,941
Net income
 per share      $      0.23                  $     0.63
Unaudited proforma
 net income
 per share                     $     0.12                $     0.24

    The Statement of Income data for fiscal 1996 relates to Advanced
Digital Information Corporation as it was operated as part of
Interpoint Corporation.

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

                               July 31, 1997      October 31, 1996
                                (Unaudited)
                                              ASSETS
Current assets:
   Cash                          $   34,598          $   10,437
   Accounts receivable, net          16,558              12,789
   Inventories, net                  13,683              10,936
   Other current assets                 689                 756
      Total current assets           65,528              34,918

Property, plant and equipment, net    2,120               1,566
Other assets                            150                 226
                                $    67,798          $   36,710

                   LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable             $     7,905          $   8,461
   Other current liabilities          3,118              1,862
      Total current liabilities      11,023             10,323
Shareholders' equity                 56,775             26,387
                                $    67,798         $   36,710

CONTACT: Advanced Digital Information Corp.

Peter van Oppen or Chuck Stonecipher, 206/881-8004

Internet address: [e-mail]