Compaq Picks JNI for Worldwide Fibre Channel HBA OEM Agreement; Multiyear Contract Covers PCI and SBus HBAs; Compaq No. 1 Storage Systems Supplier.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--July 12, 2000

JNI(R) Corporation (Nasdaq:JNIC), the fastest growing Fibre Channel host bus adapter company in 1999(1), today announced it has signed a three-year, worldwide OEM agreement with Compaq Computer Corporation (NYSE:CPQ) to supply the company's FibreStar(TM) host bus adapters for Compaq computer servers and storage devices. Compaq is the world's leading storage systems supplier and leading storage area network (SAN) provider.

The agreement covers JNI's PCI and SBus host bus adapters (HBAs), primarily targeting Compaq storage systems -- (Compaq StorageWorks RAID Array 8000, Enterprise Storage Array 12000, Modular Array 8000 and Enterprise Modular Array 12000 -- connected to Solaris-based servers.

The JNI adapters are offered as the Compaq PCI-to-Fibre Channel Host Bus Adapter for Solaris (P/N 380576-001) and the Compaq 64-Bit SBus-to-Fibre Channel Host Bus Adapter for Solaris (P/N 123503-001) and are designed for enterprise mission-critical applications on Sun host systems connected to StorageWorks RAID Array and Modular Array storage systems, providing industry-leading performance in both Fibre Channel Arbitrated Loop and Fibre Channel fabric based configurations.

"Compaq's agreement reinforces the long-term ties between the two companies while opening up numerous opportunities for JNI worldwide," said Roland J. Thibodeau, senior vice president of sales for JNI Corp. "As Compaq helps pave the way for Storage Area Network (SAN) deployment throughout the world, JNI's Fibre Channel HBAs continue to be the linchpin connecting their servers and storage systems running under multiple operating systems that are so pervasive in today's enterprise computing environment."

JNI now has formal OEM agreements with the six largest suppliers of external disk storage systems: EMC, Compaq, IBM, Sun Microsystems, Hewlett-Packard and Hitachi Data Systems, accounting for 74.3% of US external disk storage systems revenue in 1999, according to IDC(2). In addition, JNI sells a significant portion of its sales into servers and storage systems of these six companies via direct and distribution channels.

About JNI Corporation

JNI Corporation is the fastest-growing Fibre Channel host bus adapter company and the No. 2 manufacturer of Fibre Channel HBAs (non-captive) in revenue in 1999 according to IDC (4/00). JNI offers a broad line of HBAs, ASICs and software for storage area networks (SANs). JNI's PCI products operate on Solaris, Windows 2000, Windows NT, Novell, Linux and MacOS systems.

JNI's SBus products run on Solaris. Customers include Amdahl, Avid, Chaparral, Compaq StorageWorks, Consan, EMC, Eurologic, Hewlett-Packard, Hitachi Data Systems, IBM, LSI Logic, McData, MTI, StorageTek and Sun Microsystems. Company headquarters are in San Diego, with offices throughout the U.S. and Munchen, Germany.

JNI -- First in Fibre Channel(TM) -- www.jni.com

Forward Looking Statements

With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks include the rapidly changing technology in the company's markets, the evolving industry standards and frequent introductions of new products and enhancements; the fact that the Fibre Channel market is at an early stage of development; the company's reliance on certain contract manufacturers, OEMs, distributors and key customers and the other risks discussed in the company's registration statement on Form S-1 and other reports filed with the Securities and Exchange Commission.

JNI, JNIC, FibreStar, and First in Fibre Channel are trademarks or registered trademarks of JNI Corp. All other trademarks are the property of their respective holders.

(1) Fastest-growing overall and No. 2 non-captive (merchant) host bus adapter company in terms of revenue according to IDC Bulletin No. 22058, published April 2000. 4 IDC publication No. 21643, 1999 U.S. Disk Storage Systems Market Forecast and Analysis, Table 78 "US External Disk Storage Systems Revenue by Supplier, 1998 and 1999," April 2000.

(2) IDC publication No. 21643, 1999 U.S. Disk Storage Systems Market Forecast and Analysis, Table 78 "US External Disk Storage Systems Revenue by Supplier, 1998 and 1999," April 2000.