Ancor Communications Inc. Shareholder Files Suit Against Company and Certain of its Officers and Directors Alleging Material Misstatements and Omissions.

PHILADELPHIA--(BUSINESS WIRE)--Aug. 15, 1997--A class action has been commenced in the United States District Court for the District of Minnesota by plaintiff Jeffrey L. Cox on behalf of purchasers of Ancor Communications Inc. (NASD: ANCR) ("Ancor") common stock during the period May 15, 1996 through March 15, 1997 ("Class Period").

Plaintiff alleges that Ancor and its management, in violation of Section 10(b) of the Securities Exchange Act of 1934, artificially inflated the price of Ancor stock by misleading investors about a $30 million contract with Sequent Inc., the acceptance of Ancor's Fibre Channel products in the marketplace, its revenue recognition policy, its policy for allowing customer returns, and its revenues and earnings for fiscal year 1996.

In fact, the Sequent contract was subject to Ancor developing a product compatible with Sequent's products. And, because Ancor was experiencing difficulty in achieving market acceptance for its products, it began allowing customers to return products, contrary to the company's stated policy.

When Sequent in fact cancelled its contract and the truth about the lack of acceptance of Ancor's products and the product returns were revealed, the price of Ancor's stock fell to approximately $4.125 per share from a Class Period high of $34. The Complaint alleges that certain Ancor insiders took advantage of the inflated price of Ancor stock by selling more than 150,000 shares of Ancor stock before the truth was made public, for proceeds in excess of $2.7 million.

The plaintiff seeks to recover damages on behalf of all purchasers of Ancor common stock during the Class Period. He is represented by, among others, the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions.

Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years from offices in Philadelphia, San Diego, New York and New Jersey. The Barrack Rodos firm is nationally recognized, having been designated lead counsel by federal and state courts across the country in large, complex cases and recovering hundreds of millions of dollars for class members.

Most significantly, Barrack Rodos is acknowledged as an outstanding trial firm, having most recently won a multi-million dollar verdict in Gutierrez v. Givens, a consumer class action, tried by the firm on behalf of 29,000 California residents.

If you are a member of the Class described above, you may, no later than Sept. 29, 1997, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact the Shareholder Relations Manager at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, Pa. 19103, at 800/417-7305 or 215/963-0600, fax number 888/417-7306 or 215/963-0838 or by e-mail at [e-mail] .

CONTACT: Barrack, Rodos & Bacine

Counsel for Class Plaintiffs

Shareholder Relations Manager, 800/417-7305 or

215/963-0600

Fax: [phone] or 215/963-0838

[e-mail]