Computer Technology Innovators Join Forces to Launch New Server Company, RLX Technologies.

Business Editors & High Tech Writers

HOUSTON--(BUSINESS WIRE)--Jan. 16, 2001

New Class of Servers Will Provide Breakthroughs in High-Density,

Power Savings; Promises to Redefine Server Economics

Led by an impressive team of hi-tech industry veterans who helped revolutionize the server industry, RLX Technologies, Inc. today announced plans to introduce a new class of servers that promise to "redefine server economics."

The RLX management team is headed by CEO Gary Stimac, who led Compaq Computer's Systems Division and oversaw the development of the first Windows/Intel server platforms. Joining Stimac is President and COO Michael Swavely, who was the former president of Compaq's North America operations, RLX Co-Founder and Chairman John R.W. Cracken, and RLX Co-Founder and Chief Technology Officer Chris Hipp. In addition, nearly a dozen others have joined the new company's management team in the last 30 days, including industry executives with years of experience at companies such as Alcatel, AltaVista, Compaq, Dell, Nortel and Sun.

Code named "Razor," the RLX servers -- which will be introduced and shipped during the first half of this year -- will incorporate the Transmeta(TM) Crusoe(c) x86-compatible microprocessor and support Linux, Microsoft Windows 2000 Server(TM) and other leading operating systems.

"Every five to 10 years, new technologies come together at the right time to address key strategic issues in the marketplace. Stories concerning energy, economics and the environment are covering the front pages and airways of our leading newspapers, magazines and broadcast mediums. With the powerful combination of the RLX unique system server design and other engineering advances, we have created a new class of server to meet these marketplace challenges head on," said Gary Stimac, CEO of RLX Technologies.

"The company vision is crystal clear: Our goal is to redefine server economics," continued Stimac. "With a solid executive team in place and groundbreaking server technology, RLX is ready to rapidly capture market share and become the leading supplier for this server segment."

"The revolutionary new Razor server platform will deliver breakthrough improvements in overall business operations efficiency and bottom-line profitability for Internet Data Centers," said RLX President and COO Michael Swavely. "High density, low power and low heat generation, along with our fast deployment features, will reduce the time, effort and cost of bringing new customers on-line," said Swavely.

"The combination of the Transmeta Crusoe processor with the RLX server represents a significant technology advance for customers," said Transmeta CEO Dave Ditzel. "The Razor server provides unparallelled customer benefits, and all from a team that set the course for the server marketplace. RLX customers are the ultimate beneficiaries, as this team once again raises the industry's competitive bar."

The technology advances of Razor's unique patented design and engineering features break new ground in addressing the economic challenges faced by Internet Data Center customers, including: Deployment time, space, power consumption, heat, reliability and capital utilization. This is the first RLX product out of a family of products that are planned to meet the needs of this marketplace.

RLX is entering into the beta stage of product development for the new server platform and is working closely with a domestic manufacturer that offers global capabilities to conduct the fulfillment, technical service and support of its hardware platform. The company plans a build-to-order direct delivery model.

Funding and Management Team

RLX Technologies' executive team has invested several million dollars of their own finances in the company start-up. To date, the RLX executive team, angel and local private institutional investors have invested approximately $19 million in RLX Technologies. The company is currently raising an additional round of private financing.

The RLX management team is comprised of the following executives:

-- John Cracken -- Chairman, Co-Founder

-- John Harkey -- Co-Founder

-- Gary Stimac -- Chief Executive Officer

-- Michael Swavely -- Chief Operating Officer & President

-- Chris Hipp -- Co-Founder & Chief Technology Officer

-- Pat Collins -- Vice President, Operations

-- Richard Swingle -- Vice President, Marketing

-- Mike Perez -- Vice President, Technology

-- Ronnie Ward -- Vice President, Systems Engineering

-- Keith McAuliffe -- Vice President, Product Development

-- Kevin Bohren -- Vice President, Business Development & Communications

-- Mike Clark -- Vice President, Worldwide Sales & Support

-- J Tempesta -- Chief Financial Officer

-- Ken Chin -- Vice President, Legal, & General Counsel

Company Background

Working with Cracken, Harkey & Co., a Dallas-based, private-equity firm, RLX Technologies Co-founders John Cracken and Chris Hipp envisioned a new type of server uniquely suited to the changing dynamics of Internet Data Center customers: A family of products, specifically designed to provide customers with unparallelled density, a promise of significant electrical power savings, tremendous scaleability and fast deployment.

Cracken and Hipp assembled a team of top-notch people that developed a prototype of the new product concept in record time. The team took their prototype on the road to potential customers, receiving superb reviews and securing additional private funding.

Presenting their business plan to the venture community last fall, Cracken and Hipp were introduced to Gary Stimac, who immediately identified the company's concept as a solid market opportunity. Stimac in turn contacted former Compaq colleagues, asking for their objective opinions. In a series of meetings held this past November at a Houston-area barbeque restaurant, Stimac called former team mates, alerting each that he was "putting the band together again" with a new business opportunity. From Florida to Washington State, from California to Colorado, they all came. No one turned him down.

About RLX Technologies, Inc.

RLX Technologies is developing a new class of server products that will dramatically recast the dynamics of the server marketplace. The company is headquartered in The Woodlands, Texas, a 27,000-acre wooded community located 45-minutes north of Houston. The Woodlands is a master-planned neighborhood of homes, businesses, recreation and entertainment complexes all within a forested setting of golf courses and hiking/biking trails. In close proximity to George Bush Intercontinental Airport, The Woodlands is home to over 800 businesses, including WorldCom, Sprint, Honeywell, Shell Oil, Mobil and Pennzoil. For information about RLX Technologies, check out our Web site at www.rlxtechnologies.com.

About Cracken-Harkey

Cracken Harkey is a Dallas-based, private-equity firm founded by John Cracken and John Harkey for the purpose of evaluating and prototyping Internet-enabling technologies. Cracken Harkey distinguishes itself from traditional private-equity and venture firms by leading and funding a rigorous feasibility study of each technology that qualifies for review under the firm's defined investment criteria. And, once Cracken Harkey determines to prototype a technology, the firm joins the technology's inventor in founding a start-up to do so, and one of the firm's Managing Partners assumes the role of interim CEO leading the start-up in all matters until its selection of a permanent management team and venture partners. Cracken served as the RLX Chairman, President and CEO until RLX engaged Stimac in December 2000. Today, Cracken serves as the RLX chairman.