Mylex Forms Joint Venture With Lobster Technology Holding AG to Focus On Network Attached Storage; Network Power & Light Investments Leveraged.

FREMONT, Calif.--(BUSINESS WIRE)--June 21, 1999--

Mylex Corporation (Nasdaq:MYLX) today announced the formation of a joint venture with Lobster Computer Concept GmbH, a subsidiary of Lobster Technology Holding AG of Berlin, Germany. The new venture based in Berlin, called LXCO Technologies AG, will engage in the development and marketing of network attached storage products.

Under the terms of the joint venture, Mylex has transferred certain intellectual property and technology previously associated with its discontinued Network Power & Light operations to Lobster Computer Concept for contribution to the new venture. In exchange, Mylex will receive a 19% interest in LXCO. Mylex also holds the option (at its discretion) to increase its ownership interest in LXCO to 45%, at any time after October 1, 1999, for no additional consideration. The first product resulting from this venture is not expected until the latter part of 1999. Lobster Computer Concept has been Mylex's master distributor in Germany for many years.

"When Mylex first conceived the idea for NP&L in 1996, our vision was to create a new company that would dramatically reduce the costs and simplify the complexities of adding storage to networks," said Al Montross, president and CEO of Mylex. "Unfortunately in July 1998, the company was forced to make the tough decision to discontinue NP&L's development activities in order to increase our chances of achieving our near-term profitability goal. This venture allows us to continue to participate in the emerging market for network attached storage technology by leveraging our previous NP&L investments through LXCO's efforts, as well as join forces with a strategic partner like Lobster in the field of storage."

This release contains forward-looking information with respect to plans, projections or future performance of the Company, the occurrence of which involve certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, without limitation, changes in customer order patterns, particularly those resulting from fluctuations in actual or projected server shipments; demand and competition for LXCO's projected products; component availability; the mix of product sold; pricing pressures; the ability of LXCO to ship ordered product in a timely manner; business conditions and growth in the computer industry and general economy; instability in foreign economies; the risk of inventory obsolescence due to shifts in market demand or other causes; and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, specifically its 10-K filing for the period ended December 26, 1998 and Form 10Q for the period ended March 27, 1999. These forward-looking statements speak only as of the date hereof, and the Company disclaims any intent or obligation to update such statements.

About Mylex

Founded in 1983, Mylex Corporation is an ISO 9001-certified developer of high-performance hardware and software for moving, storing, protecting and managing data in network and desktop environments. Ranked as the No. 1 supplier of RAID controllers in the non-captive network systems disk array market in the 1998 Dataquest and IDC reports and No. 1 in the 1998, 1997, 1996 and 1995 DISK/TREND reports, Mylex produces high-performance RAID controller subsystems, SCSI adapters and complementary computer products for network servers, mass storage systems, workstations and system motherboards. Mylex products are sold globally through a network of OEMs, major distributors, VARs and system integrators. Mylex Corporation is headquartered at 34551 Ardenwood Blvd., Fremont, CA 94555, and can be reached by phone at 510/796-6100 or toll free at 800/77-MYLEX, by fax at 510/745-8016 or on the Internet at http://www.mylex.com.

About Lobster

Founded in 1980, Lobster Technology Holding AG, through its subsidiary companies, is recognized as a leading, value-added distributor and manufacturer of mass storage systems and software solutions to the European market. Recognized by Computer Reseller News as the most customer-friendly distributor in Europe, the company specializes in offering high-end storage and networking solutions (RAID, SCSI, Fibre, and ISDN products) which provide data security and availability to high-end server systems and high-performance workstations. Through its subsidiary, LXCO Technologies AG, a joint venture between Lobster Technology AG and Mylex Corporation, Lobster plans to bring Network Attached storage solutions to market in the latter half of 1999. Since May 12, 1998 Lobster Technology Holding AG has been trading on the stock exchanges of Berlin, Frankfurt on the Main and Stuttgart. The company's headquarters are located in the Aldo Rossi House near Checkpoint Charlie, the former crossing-point on the border between East and West Berlin. For more information about Lobster Technology Holding AG or any of its subsidiary companies see http://www.lobster-ag.de on the Internet.