ADIC fourth quarter sales grow 80 percent as earnings reach $1.5 million, or 18 cents per share.

REDMOND, Wash.--(BUSINESS WIRE)--Dec. 2, 1996--

Annual EPS is 41 cents on sales of $59 million

Advanced Digital Information Corp. (NASDAQ/NMS:ADIC) today announced earnings of $3.4 million, or 41 cents per share, on revenues of $59.0 million for the fiscal year ended Oct. 31, 1996.

Earnings for the fourth quarter ended Oct. 31 were $1.5 million, or 18 cents per share, on 80 percent revenue growth to $19.4 million. Annual sales grew 86 percent over fiscal 1995.

"ADIC sales continued to show outstanding growth during the fourth quarter with an increase of 28 percent over the third quarter and a 60 percent increase in net income compared to that quarter," said Chief Executive Officer Peter van Oppen. "These results reflect persistence of the growth rates which we have enjoyed throughout fiscal 1996."

The company noted that these figures represent both the first quarterly and annual results released since ADIC was spun off as a separate public company on Oct. 16, although results for the previous fiscal quarters are available in the Form 10 Information Statement which is on file with the SEC and available from the company. ADIC has averaged over 97 percent compounded annual revenue growth over its last 10 quarterly periods.

"We are extremely pleased to see continued strong acceptance of our newer DLT tape storage products, including excellent interest in the Scalar 218 DLT library which was announced during the last quarter," van Oppen said. The Scalar 218 was recently selected for a 1996 Windows NT Magazine Technology Award.

ADIC cautioned that established seasonal patterns suggest the first quarter ending Jan. 31, 1997, is not likely to show sequential quarterly growth over the quarter just reported. First quarter is expected to show significant comparative growth over the same period in fiscal 1996, according to the company.

On Oct. 16, ADIC was spun-off from Interpoint Corp. as a separate public company. Terms of the distribution included more than $9 million in forgiveness of intercompany debt and tax liabilities related to Interpoint as well as a contribution of $10 million to ADIC's working capital. These revisions in capital structure had minimal effect on income for the quarter and fiscal year just completed.

Headquartered in Redmond, Advanced Digital Information Corp. has been providing data storage solutions since its founding in 1983. It is the leading drive-independent supplier of automated tape storage libraries for client-server networks with an installed base of over 17,000 units.

ADIC products are available with 4mm (DAT), 8mm, and DLT tape drive technologies and are supported by leading suppliers of backup and HSM software products across major operating systems. ADIC maintains sales offices throughout the United States and Europe with established reseller channels around the world. Further product information is available via the Internet at http://www.adic.com -0-

Note to Editors: 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 10 Information Statement on file with the SEC. -0-

              ADVANCED DIGITAL INFORMATION CORP.
           CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS
           (In thousands, except for per share amounts)

                          Three months ended     Fiscal year ended
                               Oct. 31,               Oct. 31
                              (Unaudited)
                           1996       1995        1996      1995

Net sales                 $19,386    $10,747     $58,957   $31,716
Cost of sales              13,298      7,878      41,887    22,107
Gross profit                6,088      2,869      17,070     9,609
Selling and administrative
 expenses                   3,213      2,306       9,846     8,001
Research and development
 expenses                     494        378       1,542     1,097
Operating profit            2,381        185       5,682       511
Other expenses, net            25        126         394       296
Income before provision
 for income taxes          2,356          59       5,288       215
Provision (benefit) for
 income taxes                867         (63)      1,858       (77)
Net income                 1,489         122       3,430       292
Unaudited proforma net
 income per share       18 cents                41 cents   4 cents

This financial data relates largely to Advanced Digital Information
Corp. as it was operated as part of Interpoint Corp.  These results
are presented on a basis consistent with the information presented
in the Form 10 Information Statement which is on file with the
Securities and Exchange Commission and available from the company.

CONTACT: ADIC, Redmond

Peter van Oppen, 206/881-8004

Chuck Stonecipher, 206/881-8004

Internet address: [e-mail]