Cornice Enters a Strategic Partnership with Fujitsu on Joint Development of 1.8-Inch Consumer Electronics Drives.

LONGMONT, Colo. -- Cornice Inc. -- an innovator in consumer storage solutions -- today announced the launch of a strategic development project with Fujitsu Limited, a leading provider of customer-focused IT and communications solutions for the global marketplace. This joint development will focus on a new line of consumer electronic-focused hard drives to fulfill the growing audio/video portable storage market. With the expanding popularity of portable video players and other digitally distributed content, this strong alliance provides the platform for fast market expansion. The development goal is to start mass production of a 1.8-inch product by mid-2007. Included in this partnership is a specific IP sharing arrangement required for the project.

The jointly developed HDD product line will serve fast-growing consumer electronics markets such as portable music players, video players, and ultra-portable notebooks with small but extremely high capacity storage. The combination of Fujitsu's longtime expertise in developing 2.5-inch HDDs and Cornice's innovation and experience in developing compact hard drives for consumer electronics devices is expected to provide the fastest time to market for a new high-quality product set. This line, which will use multi-platter perpendicular recording technology, will feature Cornice's durability, ruggedness, and low-power consumption.

"The 1.8-inch CE market is a very fast growing segment and we see tremendous growth opportunities within it," said Camillo Martino, Cornice's president and chief executive officer. "Rarely are the skillsets of two companies so well aligned -- Cornice has served the consumer electronics market since its beginning and has a product offering uniquely suited to portable electronics; and Fujitsu is a world leader in high-quality hard disk drives for the computer world."

"Cornice has proven to be a successful innovator and player in the small form-factor consumer electronics storage market," said Hironobu Nishikori, storage product group senior vice president, Fujitsu Limited. "We are eager to begin our joint partnership and to provide the industry with an optimal 1.8-inch storage solution."

Cornice will immediately begin hiring development engineers in the Longmont, Colo., area for this joint development project.

To enable the fastest time to market, the best technologies from each company will be shared and merged into an optimal CE Storage solution.

Cornice's existing storage line, a one-inch storage product, is a natural fit for the pocket-able consumer electronics market needs, offering both the thinnest and smallest available storage solution, important for compact-sized mobile phones, and the extreme durability of Crash Guard(TM) technology, which is crucial for the end consumer. Cornice's drives are able to withstand even the most extreme abuses of the CE environment, such as accidental drops or excessive physical activities, without skipping, stopping or corrupting data.

About Cornice

Cornice Inc. is the leading innovator in consumer storage solutions that enable a new generation of pocket-able consumer electronic devices for the world's foremost brand-name manufacturers. The one-inch Cornice storage solutions are durable, integrated personal storage that brings new levels of ruggedness and content capacity to these devices. Cornice storage is built into a wide variety of consumer products, including mobile phones, MP3 players, personal video recorders, GPS devices and portable storage products. Cornice customers consist of the world's leading consumer electronics manufacturers. Privately held, Cornice is headquartered in Longmont, Colorado, with integration centers in Europe, Hong Kong, Japan, Korea and Taiwan. Visit Cornice at http://www.corniceco.com/.