ATL Products Reports 45 Percent Increase In First Quarter Sales.

IRVINE, Calif.--(BUSINESS WIRE)--July 21, 1997--ATL Products Inc. (NASDAQ/NMS:ATLPA) Monday reported that revenues for the first quarter of its fiscal year ending March 31, 1998 increased 45 percent to $18,567,000 compared with $12,777,000 in the corresponding period of the prior year.

Net income for the quarter was $1,190,000, or 12 cents per share compared to $931,000 or 11 cents per share in the corresponding period last year.

Kevin Daly, chairman and chief executive officer stated: "The first quarter reflected continued growth of the DLT library business setting records for ATL in terms of both production and sales. We are particularly pleased that, for the first time, production exceeded 500 units despite the fact that we moved the manufacturing facility to our new location in Irvine in the middle of the quarter. It also represented a continuation of the shift toward a balance between our OEM and VAR businesses with each channel representing approximately 50 percent of the product sales in the quarter.

"In the quarter sales of DLT 7000-based libraries increased to approximately 34 percent of overall sales reflecting both an increased availability of the drives and a strong demand for high performance DLT libraries. The sale of all our DLT libraries remained strong with the new 7100 series libraries representing an increasing share of the library shipments."

This news release contains statements which may be deemed to be forward-looking. The actual results of ATL may differ materially and will depend on its performance which could be adversely affected by such factors as unexpected shortages of critical components, short product lives, the timing and market acceptance of planned new product introductions, competition (including new and directly competitive products from others), and the significant uncertainty of market acceptance of new products by both distribution channels and end-user customers.

For a discussion of such factors, see Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in ATL's most recent Form 10-K (Commission File No. 000-22037).

ATL Products Inc. designs, manufactures and markets automated tape libraries for the networked computer market. ATL's products incorporate DLT tape drives as well as ATL's proprietary IntelliGrip automation technology, providing end users with rapid and reliable access to computer data across a variety of networks. ATL Products Inc. provides sales and service throughout the United States and in major cities in Europe and Asia. The company's headquarters are located at 2801 Kelvin Avenue, Irvine, CA 92614-5872. Telephone: [phone]. Fax: [phone]. E-mail: [e-mail] . WWW site: http://www.atlp.com . -0-

ATL Products Inc. Unaudited Condensed Consolidated Statement of
Operations
(in thousands, except per share data)

                                           First Quarter Ended
                                                 June 30,
                                           1997             1996

Net Sales:
  Products                              $16,677          $11,418
  Service and spare parts                 1,890            1,359
Total net sales                          18,567           12,777
Gross profit:
  Products                                6,704            4,426
  Service and spare parts                   675              500
Total gross profit                        7,379            4,926

Expenses:
  Research and development                1,761              585
  Sales and marketing                     2,698            1,514
  General and administrative                661              780
Income from operations                    2,259            2,047
Interest charged by parent                  276              495
Income before income taxes                1,983            1,552
Income taxes                                793              621
Net income                               $1,190             $931
Net income per share                      $0.12            $0.11
Shares used in computation
  of income per share                    10,050            8,484



                            ATL Products Inc.
                        CONDENSED BALANCE SHEET
                              (in thousands)

                                 March 31, 1997         June 30, 1997
                                                         (unaudited)

ASSETS
  Current Assets                        $35,206              $29,655
  Property, plant and
   equipment (net)                        2,719                3,092

  Total Assets                          $37,925              $32,747

LIABILITIES
  Current Liabilities                   $19,312              $13,484
  Long-term debt                          9,748                9,219
  Stockholders' equity                    8,865               10,044

  Total Liabilities                     $37,925              $32,747

CONTACT: ATL Products, Irvine

Gregory Miner, 714/774-5000

http://www.atlp.com