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Ciprico Reports Q3

MINNEAPOLIS -- Ciprico Inc.
(NASDAQ: CPCI) (the "Company") today reported revenue for the third
fiscal quarter ended June 30, 2007 of $1.6 million, less than either
the previous quarter or the prior year third quarter. As indicated
by management in the previous quarter press release, the third
quarter revenues were impacted by industry-wide softness in the video
storage marketplace and strong competition. A majority of the
revenue continues to be from legacy hardware based appliance sales,
particularly the MediaVault(TM) product line. As expected, new
product revenues, in particular those from RAIDCore(TM) software
license and related RAIDCore(TM) controller sales, remain in their
early design-in stages. The Company reported a net loss of $2.5
million, or $0.49 per share for the quarter due to significant
investments in research and development for new products as well as
unabsorbed overhead related to low revenue.

"Our third quarter was very challenging as our legacy products
encountered strong competition. We continued to make investments in
our future that drove significant progress toward the products and
technology that we believe will return Ciprico to growth and
profitability," said Steve Merrifield, Ciprico President and Chief
Executive Officer. "Based on this progress, we expect the third
quarter to be the low water mark for revenues. We anticipate
revenues in the fourth quarter will grow 30% over the third quarter
as we begin to bring new products to market."

Mr. Merrifield added, "New product initiatives yielded a number of
important accomplishments in our third quarter, including the first
shipments of our RAIDCore RC5000 series in June, the first shipments
of the Huawei - 3COM software license products using RAIDCore and
participation with Boeing in the Navy's P-8A program. We also
demonstrated a new high performance RAIDCore based MediaVault
external PCI Express product."

Ciprico Inc.