ADIC and Benchmark Electronics Sign Letter of Intent to Expand Outsourcing Relationship.

Business Editors/High-Tech Writers

REDMOND, Wash.--(BUSINESS WIRE)--Oct. 6, 2003

Advanced Digital Information Corporation (Nasdaq:ADIC) announced today that it has signed a letter of intent (LOI) with Benchmark Electronics, Inc (NYSE:BHE) to expand the two companies' existing outsource manufacturing relationship to include a portion of ADIC's entry level and workgroup tape automation product line.

As part of the agreement, ADIC would transfer to Benchmark approximately 150 to 200 team members with skills in the manufacture, material procurement, test, inspection and inventory management of its products. Under terms of the LOI, Benchmark would also purchase certain assets, including inventory, and assume the lease related to ADIC's Marymoor manufacturing facility in Redmond, Washington. Benchmark would provide manufacturing, configure-to-order and order fulfillment services for ADIC from Marymoor as well other Benchmark locations worldwide. The LOI outlines the intention of the parties to complete an asset purchase agreement and a master supply agreement. The agreements must be approved by the Board of Directors of each company.

ADIC officials commented that the move continues its ongoing strategy of partnering with manufacturing specialists to support the continued rapid growth of the high-volume, entry level component of its product line. Development and design activities for entry level and workgroup products would be consolidated in ADIC's Redmond, Washington headquarters facility. The design and manufacture of ADIC's larger, enterprise library products -- currently produced in Denver, Colorado and Boehmenkirch, Germany -- would not be affected by the agreement. ADIC's worldwide workforce is approximately 1,200 team members. Company officials do not expect the asset sale to have a material impact on the company's results of operations.

"ADIC continues to work toward providing the highest quality solutions across our entire product line at the lowest possible cost to our customers," commented Peter van Oppen, ADIC chairman and CEO. "We believe this strategy also provides the best return to our shareholders and excellent opportunities for those team members who will be joining Benchmark. We are already reaping the benefits of a well managed outsourcing model for the manufacture of certain ADIC product lines and we are excited to further expand upon that model."

"This agreement will significantly expand the current manufacturing relationship between Benchmark Electronics and ADIC," said Cary Fu, president, Benchmark Electronics, Inc. "We look forward to continuing to provide ADIC with superior products and services, and to future opportunities to further expand our alliance. This expansion is valuable to us in support of both ADIC and our growing customer base in the Pacific Northwest."

About Benchmark Electronics, Inc

Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.

About ADIC

Advanced Digital Information Corporation (Nasdaq:ADIC) is a leading provider of Intelligent Storage(TM) solutions to the open systems marketplace. ADIC(R) is the world's largest supplier of automated tape systems using the drive technologies most often employed for backing up open system, client-server networks(a). The Company's data management software, storage networking appliances, and disk-to-tape data protection solutions provide IT managers innovative tools for storing, managing and protecting their most valuable digital assets in a variety of disk and tape environments. ADIC storage products are available through a worldwide sales force and a global network of resellers and OEMs, including Cray, Dell, Fujitsu-Siemens, Hewlett-Packard, IBM, and Sun. For more information, visit www.adic.com.

(a) Market position from: IDC 2001 worldwide revenue and unit market share data for all automated systems using DLT, SDLT, LTO, 8mm or AIT drives; and Gartner Dataquest, Tape Automation Systems Market Shares, 2002, F. Yale, April 2003. ADIC is a registered trademark and Intelligent Storage is a trademark of Advanced Digital Information Corporation. All other trade or service marks mentioned in this document should be considered the property of their respective owners.