Ciprico Applied From Nasdaq Global to Capital Market

Ciprico Inc. has applied to transfer its NASDAQ listing from The Global Market to
The NASDAQ Capital Market. As anticipated the Company received a letter
from NASDAQ on January 2, 2008 indicating the Company fails to comply
with the minimum $10 million stockholders’ equity requirement for
continued listing on The NASDAQ Global Market as set forth in
Marketplace Rule 4450 (a)(3). The Company does meet the standard for
stockholders’ equity for The NASDAQ Capital Market and believes it is
in compliance with all other listing requirements.

As announced on December 26th, the Company entered into a
Convertible Note Purchase Agreement with multiple accredited investors
for the private placement of $5.1 million of convertible notes and
common stock warrants. The conversion price for the notes and the
exercise price for the warrants is $3.86 per share. The notes are due
and payable in full on the 15-month anniversary of the date of issuance
and are convertible at the holder’s option. If the holders were to
convert their notes for common stock the Company would be above the $10
million stockholder’s equity requirement. In addition, and as
previously disclosed, the Company has filed its Proxy Statement with a
proposal to increase the number of authorized shares in consideration
of additional capital needs to facilitate continued growth in 2008.

Ciprico Inc.