Avid Technology and Vixel Renew OEM Agreement; Avid and Vixel Deliver the Industry's Foremost Video Editing System.

Business Editors, High-Tech Writers

BOTHELL, Wash.--(BUSINESS WIRE)--Jan. 19, 2000

Vixel Corporation (Nasdaq:VIXL) and Avid Technology, Inc. today announced that the two companies have entered into a multi-year OEM agreement.

Vixel, a leader in Fibre Channel connectivity solutions, will supply Avid Technology, a leading provider of digital editing tools for information and entertainment applications, with Vixel Fibre Channel switches for the Avid Unity(TM) shared storage solution. Over the last year, Fibre Channel technology has fundamentally changed post-production and multi-media editing methods and productivity by enabling multiple users to simultaneously access and collaborate on virtually any stored digital medium. As a key element of the Avid Unity shared storage solution, the Vixel 8100 Fabric Switch creates the industry's most advanced post-production system by providing dedicated bandwidth, scalability and ease-of-use.

The Vixel 8100 offers the market a high performance and scalable storage solution for Avid's superior post-production editing systems. Maximum speed and dedicated bandwidth enable simultaneous access to data by multiple users and easy port configuration. The scalability of the Vixel 8100 ensures the protection of an organization's investment by seamlessly growing with the storage network.

"Avid Unity integrates the best products available on the market. Accordingly, we chose Vixel to play the key role as the central connection between our software and workstations to the stored data," said Steve Nezer, Vice President and General Manager of Network and Storage Solutions at Avid Technology. "Vixel switches provide the bandwidth and stability needed to connect multiple workstations, enable simultaneous access to data and quickly move data without sacrificing quality."

The renewal of this OEM agreement signifies continued adoption of Vixel switch products by Avid. This long-term relationship is based on Vixel's ability to deliver high performance, scalable switches that are optimized for data intensive applications. Avid and Vixel have cooperatively developed compelling storage solutions for the past two years. For example, Vixel developed its industry-leading LIP (Loop Initialization Primitive) isolation capability in the Vixel 8100 Fabric Switch. This feature delivers better management of LIPs on a port-by-port basis, resulting in improved video and audio quality. And when combined with Vixel's SAN InSite(TM) Management Software, storage managers have a complete view of the Fibre Channel SAN in a single easy-to-use display. The companies firmly believe in delivering storage products that provide unparalleled flexibility, reliability and scalability.

According to Arun Taneja, vice president marketing, Vixel Corporation, "The renewal of our OEM agreement with Avid demonstrates their confidence in Vixel as an industry leading provider of reliable fibre channel switch technology. Serving the needs of our OEMs such as Avid, with affordable, application focused products, is consistent with our vision and strategy. We look forward to continuing to work with Avid on delivering innovative solutions."

The increasing use of digital media requires new tools for improving editing capabilities and managing workflow. When Avid set out to re-engineer how post-production environments operate, it chose Vixel to provide high performance SAN interconnect devices and created a revolutionary new package of tools for information and entertainment applications. The Avid Unity solution dramatically improves post-production collaboration and real-time editing by providing simultaneous access to media throughout the production process and enables distributed media services from one central location.

"Vixel's success in the multimedia industry is a testament to our unique ability to focus on the applications our customers and partners utilize. As a third-generation switch provider, Vixel has the experience and engineering to deliver the most advanced post-production tools in the industry," said Taneja. "Avid solutions are used by customers worldwide, ranging from communications professionals to film, television and interactive content producers, to broadcast news organizations. Once again, Vixel has provided a key component to a powerful solution and delivered with Avid, an industry first, taking digital production and editing to a new level of performance and ease."

The Vixel 8100's exceptional features and affordable price deliver a high performance product and an easy way to implement SAN solutions. Vixel switches provide the robust connectivity necessary to ensure reliable and quality image and data transmission. Maximum speed and dedicated bandwidth enable the simultaneous access to data by multiple users, while its scalability accommodates various network sizes and grows seamlessly as storage needs change or expand.

In addition to integrating the Vixel 8100, Avid also will be integrating the recently announced Vixel 7100 and 7200 Switches, for its video and new Internet streaming video applications. The new Vixel 7000 Series Switches are ideal for a variety of environments, including Internet streaming media, e-commerce, medium to large SAN clusters, tape backup and disaster recovery, because they provide both an affordable entry point and advanced upgrade solution to expanding enterprise storage networks.

Vixel, the inventor of switched private loop technology, or "Stealth," now in its third generation, is applying its proven experience to the growing market demand for affordable, high performance Fibre Channel switches. The Vixel 7000 Series Switches feature the company's exclusive "Stealth-3" technology with superior LIP isolation capabilities, automatic configuration, the industry's most extensive loop configuration and tuning tool set, proven fabric upgrade path and unsurpassed performance. Together with Avid, Vixel will continue to deliver to their mutual customers innovative application solutions for data intensive environments.

About Vixel Products

Vixel is the complete source for all SAN interconnect products. Vixel's suite of switches, hubs, transceivers and management software delivers a reliable and highly scalable set of tools. Vixel's newest product line, the Vixel 7000 Series Fibre Channel Switches, offers flexible and serviceable SAN solutions in the industry's most compact design. Another Vixel innovation, the Vixel 2100 Zoning Managed Hub delivers four independent, 100 MBps loops, providing increased performance. Vixel's software umbrella, SAN InSite, is the most advanced management software tool enabling IT managers to control, configure and trouble shoot all of Vixel's products.

Except for historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include risks affecting development of the storage area network, or SAN market, the competitiveness and performance of Vixel's products in the rapidly changing SAN market and the ability of Vixel to meet evolving product standards required by customers and others involved in the distribution channel for SAN products. Further information on the factors and risks that could affect Vixel's business, financial condition and results of operations are included in the Risk Factors section of Vixel's public filings with the Securities and Exchange Commission, including the Registration Statement on Form S-1 (File No. 333-81347) and Vixel's most recent report on Form 10-Q, which are available at www.sec.gov.

About Avid Technology, Inc.

Avid Technology, Inc. (Nasdaq:AVID) is an international, industry-leading provider of digital audio and video tools for information and entertainment applications. The Company's products are used by a variety of customers worldwide including film, television, and interactive content producers, TV news broadcasters, corporate communicators and consumers. For more information, visit Avid's Web site at www.avid.com.

Avid is a registered trademark and Avid Unity is a trademark of Avid Technology, Inc.

About Vixel Corporation

Vixel Corporation is a leading provider of Storage Area Network (SAN) solutions. The company's comprehensive product portfolio of switches, hubs and transceivers with an integrated management software application delivers a reliable, interoperable solution to its customers and partners. SAN InSite is Vixel's comprehensive management software for SANs, providing remote control and diagnostics for Fibre Channel switches, hubs and transceivers from a single console, reducing the administration and overhead of implementing a SAN. Established in 1991, the company continues to develop innovative Fibre Channel products to optimize the deployment, performance and management of SAN solutions. Vixel products are available through its network of value-added resellers, alliances and OEMs. Vixel is an ISO 9001 certified company.

For more information, visit Vixel's web site at www.vixel.com. Vixel Corporation is headquartered at 11911 North Creek Parkway South, Bothell, Washington 98011 and can be contacted by phone at 425/806-5509 or e-mail at [e-mail].