Emulex And Intel To Develop First Storage Processors For Serial ATA, SAS And Fibre Channel Within A Single Architecture

SCOTTSDALE, Ariz., April 15, 2003 - Emulex Corporation and Intel Corporation plan to develop next-generation storage processors that for the first time integrate Serial ATA, Serial Attached SCSI (SAS) and Fibre Channel interfaces within a single architecture. The result of the joint development, announced here at Storage Networking World, will be a broad line of storage processors that is expected to deliver unprecedented performance and integration across what are projected to be the three most widely used storage system interfaces.

These new storage building blocks will enable equipment makers to utilize common hardware and software components across entire families of Serial ATA, SAS and Fibre Channel products for high-performance direct attached storage (DAS) and storage area network (SAN) solutions. This building-block approach enables equipment makers to extend the value of their hardware and software investments over multiple generations of products. As serial disk drives are projected to capture 81 percent of the enterprise market by 2006**, end users will benefit from scalable, complementary serial storage solutions.

Under the agreement, Emulex will develop the protocol controller hardware, firmware and drivers. Intel will contribute its expertise in storage processor technology development and integrate its high-performance, low-power Intel® XScale® microarchitecture as the core technology for the new processors. Intel also will manufacture the processors on its industry leading 90-nanometer (nm) process technology. Emulex will market the resulting Fibre Channel products and Intel will market the Serial ATA and SAS products.

The jointly developed controllers will utilize Emulex's Service Level Interface (SLI) technology. Emulex's SLI enables driver compatibility across an entire product line, and enables firmware to be upgraded independently of drivers, providing increased return on investment and investment protection. Emulex's driver-based management technologies, including HBAnyware*, can be utilized by OEMs and end users to simplify management, configuration and maintenance of both SAN and DAS environments.

The companies expect to deliver the first processors in 2004. Specific details will not be disclosed until the products launch. No material licensing revenue is expected from this agreement.

"Building on Emulex's industry leadership in Fibre Channel and Intel's proven I/O processor technology, we're able to offer storage equipment makers the means to much more easily and cost efficiently expand product lines and respond to customer needs for innovative storage products," said Mike Wall, general manager, Intel Storage Components Division. "Incorporating Intel's XScale microarchitecture and 90-nm process technology into the equation results in processors with unparalleled performance and integration."

"This agreement enables Emulex to develop superior Fibre Channel solutions while maintaining our SLI architecture leadership," said Kirk Roller, president and chief operating officer, Emulex Corp. "This multiprotocol serial storage architecture promises leadership benefits for our traditional market segments as well as new opportunities, including blade server, embedded and target storage applications. At the same time, Intel will deliver new Serial ATA and SAS components for the DAS market segment, expanding the value of OEM investments in Emulex APIs."

About Emulex
Emulex Corporation is a leading supplier and developer of storage networking host bus adapters based on both Fibre Channel and IP networking technologies. The Emulex product families are based on internally developed ASIC, firmware and software technologies, and offer customers high performance, scalability, flexibility and reduced total cost of ownership. The company's products have been selected by the world's leading server and storage providers, including Dell, EMC, Fujitsu Siemens, Groupe Bull, HP, Hitachi Data Systems, IBM, NEC, Network Appliance and Unisys. In addition, Emulex includes industry leaders Brocade, Computer Associates, McDATA, Microsoft and VERITAS among its strategic partners.

Emulex markets to OEMs and end users through its own worldwide selling organization, as well as its two-tier distribution partners, including ACAL, Avnet, Bell Microproducts, Info-X, Netmarks, Tech Data, TidalWire and Tokyo Electron. Corporate headquarters are located in Costa Mesa, Calif. News releases and other information about Emulex Corporation are available at www.emulex.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; fluctuation in the growth of Fibre Channel and IP markets; changes in economic conditions or changes in end-user demand for technology solutions; fluctuations or delays in customer orders; the highly competitive nature of the markets for Emulex's products; Emulex's ability to gain market acceptance for its products; the company's ability to attract and retain skilled personnel; the company's reliance on third-party suppliers. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in the company's filings with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q.

Intel and Intel XScale are a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.

* Other names and brands may be claimed as the property of others.

** IDC, July 2002