Ciprico Reports Q3

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

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

Mr. Merrifield added, "New product initiatives yielded a number ofimportant accomplishments in our third quarter, including the firstshipments of our RAIDCore RC5000 series in June, the first shipmentsof the Huawei - 3COM software license products using RAIDCore andparticipation with Boeing in the Navy's P-8A program. We alsodemonstrated a new high performance RAIDCore based MediaVaultexternal PCI Express product."

Ciprico Inc.