Alacritech iSCSI Revenue Doubles Year-over-Year, Network Accelerators Support More Users, More Storage and Higher Application Performance.

TCP Chimney Offload, Strategic Partnerships Drive Adoption of Alacritech Accelerators

SAN JOSE, Calif. -- Alacritech Inc., the leader of innovative TCP/IP Offload data-delivery technology, today announced that product revenue from iSCSI sales doubled from the previous fiscal year. The company is positioned to realize similar growth for fiscal year 2008. Alacritech recently completed fiscal year 2007 and attributes its successful year both to continuous product innovation of its network and storage accelerators, including support for Microsoft TCP Chimney Offload, and to strong customer adoption of iSCSI SANs.

In addition to revenue growth from product shipments, Alacritech has increased its licensing revenue as the number of licensees shipping adapters compatible with Microsoft TCP Chimney Offload has grown. Many of Alacritech's licensee partners have seen a similar revenue uptick due to the increased popularity of iSCSI SANs.

"Customers looking to get the most in server performance and scalability look to Alacritech," said Doug Rainbolt, vice president of marketing for Alacritech. "They are finding that TOE achieves so much more, in addition to providing faster iSCSI throughput, it also frees up the server's CPU to do things such as scaling to support more clients or deliver higher application performance to users."

According to Enterprise Strategy Group (ESG), more than 20,000 customers have deployed iSCSI. In a recent study, the analyst firm found that of 500 IT managers surveyed 17 percent are using iSCSI in product environments with 20 percent planning to implement the technology. In addition, IDC expects iSCSI to account for 20 percent of external disk storage by 2010.

"As customer networks have grown, the need to optimize server performance under increased loads has also increased," said Thomas Schiffers, founder and vice president, SANDirect. "Alacritech is addressing the fastest growing segment of the server market - iSCSI - with its network and storage accelerator offerings, and is delivering a compelling value proposition to customers and partners alike."

Alacritech's network and storage accelerators are used in a wide range of applications, including video non-linear editing, file serving, medical records, and Wall Street trading ticker reporting.

Innovative Solutions and Partnerships

Alacritech demonstrated its industry leadership through the creation of Dynamic TCP Offload, the offload model used by Microsoft's TCP Chimney Offload. Alacritech's Dynamic TCP Offload supports Vista, Windows Server 2003 and Windows Server 2008, also known as Longhorn.

Continued product innovation and Alacritech's longstanding reputation as the inventors of TCP/IP Offload technology, coupled with ever increasing customer acceptance has positioned the company as the leading TCP offload technology provider. This leadership position has resulted in licensing agreements for its coveted patented technology with industry titan Microsoft, as well as Broadcom, Netxen and QLogic. The company anticipates granting two to three additional licenses in calendar year 2007.

Alacritech's wide range of dedicated iSCSI and Network Storage Accelerators (iSNA and SNA) address several server segments and are sold through more than 30 OEM and channel partners world-wide.

"Our emphasis on innovation has clearly been successful and a growing number of customers are realizing the unique benefits of Alacritech's accelerators, as reflected in our strong growth numbers," said Larry Boucher, Founder and CEO, Alacritech. "Alacritech's accelerator solutions offer customers the ability to achieve maximum scalability and performance when incorporated into their servers for both network and iSCSI-bound traffic."

About Alacritech

Alacritech is the leading provider of innovative data-delivery technology that increases the speed, power and performance of servers, enabling a truly scalable network. Organizations that use Alacritech's proven technology are better able to reduce the burden of network processing on their server, scale to support more clients and applications, achieve higher performance and realize increased network utilization. For more information visit the Alacritech web site at www.alacritech.com or contact the company at [e-mail]