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Ciprico Reports First Quarter Results

MINNEAPOLIS -- Ciprico Inc. (NASDAQ: CPCI) (the "Company") today announced results for the first quarter ended December 31, 2006. Sales for the quarter of $2.8 million were at the
same level as sales in the previous quarter but down 31% vs. the first
quarter of the prior fiscal year. Substantial decline in sales of both
legacy products and DiMeda products were in part offset by increases in
software licensing revenue related to sales of RAIDCore(TM) and
FlexSTORE(TM) software. In addition, sales of MediaVault(TM) products
increased 10% over the prior quarter and were consistent with the first
quarter of the prior year.

Gross margin for the first quarter was 43% compared to 31% in the previous
quarter and 39% in the prior year. The higher gross margin was in spite of
additional inventory charges for legacy products.
The key driver of the higher gross margin was the increase in software
licensing revenues, which have substantially better gross margins. Without
the inventory charges gross margin would have exceeded 50%.

Ciprico Inc.