JNI Corporation Comments On Preliminary Fourth Quarter Results.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Jan. 9, 2002

JNI(R) Corporation (Nasdaq:JNIC), a leading provider of enterprise storage connectivity products, today commented on preliminary unaudited financial results for the fourth quarter and year ended December 31, 2001.

JNI expects to report net revenues of $13.0 million to $14.0 million for the fourth quarter of 2001, a decrease of approximately 55% to 57% from net revenues of $30.7 million for the fourth quarter of 2000. The quarterly decrease in revenues resulted primarily from the continued decline in purchases by the major server and storage OEMs that drive the market. For the fiscal year 2001, the Company expects net revenues of $75 million to $76 million, a decline of approximately 26% to 27% over net revenues of $103.2 million for fiscal year 2000.

JNI expects to report a fourth quarter pro forma net loss of $(0.08) to $(0.09) per share. For the fiscal year, the pro forma net loss is estimated to be $(0.02) to $(0.03) per share. The Company's pro forma estimates, which exclude amortization of intangibles and stock-based compensation and reserve for excess inventory, are below the current First Call analyst consensus estimates of a fourth quarter net loss of $(0.05) per share and fiscal 2001 net income of $0.02 per share.

"We are obviously disappointed with our expected fourth quarter revenue results, although we remain positive about relatively strong unit volume and increase in PCI demand," said President and Chief Executive Officer Neal Waddington. "The order rate for the first two months of the fourth quarter was soft, but December showed strong order and shipment rates, which we hope is indicative of increasing market demand going into first quarter of 2002. We've worked hard to maintain and improve on our operating expense structure and expect continued improvement this quarter."

The Company also noted that cash balances at December 31, 2001, are expected to increase by $2.0 million to $2.5 million over the balance of cash and investments totaling $113.7 million or $4.19 per share at September 30, 2001.

JNI Corporation will report results for the fourth quarter and year ended December 31, 2001, the week of February 4.

Conference Call and Webcast

Management will host a brief conference call and simultaneous Webcast today, Wednesday, January 9, 2002, at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss today's announcement. The conference call, featuring President and Chief Executive Officer Neal Waddington and Chief Financial Officer Gloria Purdy, can be accessed live via the Internet at www.jni.com, or by phone at 703-871-3599. For those who cannot listen to the live broadcast, the Webcast replay will be available through January 23, or an audio replay will be available through January 16 by calling 888-266-2086 and entering the passcode 5772601.

About JNI Corporation

JNI Corporation is one of the leading manufacturers of connectivity products for the enterprise data center and the leading provider of Fibre Channel-based host bus adapters (HBAs) for Solaris servers. JNI offers a broad line of HBAs, ASICs and software for storage area networks, as well as InfiniBand HCA Modules. JNI's PCI products operate on Solaris, Windows 2000, Windows NT, HP-UX, AIX, Novell, Linux and Mac OS systems. JNI's SBus and CompactPCI products run on Solaris. JNI customers, distributors and strategic partners include Acal FCS, Avid, Bell Microproducts, Brocade, Chaparral, Compaq StorageWorks, Consan, Crossroads, EMC, Eurologic, Gadzoox, GE Access, Hewlett-Packard, Hitachi Data Systems, IBM, Info X, LSI Logic, McDATA, Mellanox Technologies, Nishan Systems, StorageTek, Sun Microsystems, TidalWire and Veritas. Company headquarters is in San Diego, with offices throughout the U.S. and Munich (Munchen), Germany. www.jni.com.

JNI -- enterprising solutions(TM)

Disclosure and Forward Looking Statements

FRB/Weber Shandwick serves as financial relations counsel to this company, is acting on the company's behalf in issuing this bulletin and receiving compensation therefor. The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities.

With the exception of historical information, the statements set forth above include forward-looking statements (including but not limited to, operating expense levels, inventory demand projections, our positioning in the market, OEM certification completion dates, projections for future periods and statements about JNI's product and technology development efforts including expectations about growth in the market for such products and technologies) that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include: the timing of the achievement of OEM certifications; the effect of a continuation of the decline in information technology spending by customers in our target markets; our dependence on a small number of OEM and distribution channel customers; potential delays in product development; our dependence on sole source and limited source suppliers for key components; our dependence on growth in the market for servers utilizing the Solaris operating system; increasing competition in the Fibre Channel market; our exclusive focus on Fibre Channel products; rapid technological change in our industry; changes in the storage area networks market; our reliance on manufacturers in other countries; potential litigation involving intellectual property and other issues; and other risk factors discussed in the company's reports on Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission, including the Company's most recent Form 10-K filed on March 23, 2001.

JNI, JNIC, Emerald, FibreStar, DriverSuite, 2 Gb -- Ready, EZ Fibre and `enterprising solutions' are trademarks or registered trademarks of JNI Corp. All other trademarks are the property of their respective holders.