Ciprico Reduces its Workforce by 30%

Ciprico Inc. has reduced its full-time headcount by approximately 30%. Steve
Merrifield, president and CEO of Ciprico stated: "This action was
necessitated by an insufficient volume of sales. Current business and
economic conditions have caused a sharp decline in sales of our
traditional video storage products, while our newer IT class products
are taking longer than expected to be qualified at current and
prospective customers."

As a result of the above, the Company believes its revenue ramp is
delayed approximately six months causing the Company to take action to
reduce expenses. As previously announced the Company is exploring
strategic alternatives, and to assist with this the Company has
retained Craig-Hallum Capital Group LLC, a Minneapolis-based
investment banking firm.

"Revenue projections for fiscal year 2008 will not reach the
levels anticipated," Merrifield said. "Over the past 18 months we have
worked to transition Ciprico to become a more software centric
company. We continue to be optimistic about the future of our new
technology platform as confirmed by more than 200 companies now
evaluating our new RAIDCore adapters and VST software solutions. There
remains a strong commitment to our software virtualization strategy
and we remain confident that the overall transition from hardware to
virtualized software data protection will emerge as the dominant
solution in the market over the next several years."

Ciprico Inc.