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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / SEPTEMBER 8, 2003: VOL. 2 NO. 36

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Breaking News - Storage:

Applied Micro Circuits Corporation To Acquire JNI Corporation

Applied Micro Circuits Corporation announced that it has signed a definitive agreement to acquire JNI Corporation. JNI provides Fibre Channel hardware and software products that form critical elements of storage area networks.

Under the terms of the agreement, AMCC will pay $7.00 per share in cash for each outstanding share of JNI common stock, a total of approximately $190 million, and will assume all outstanding JNI employee stock options. As of June 30, JNI's assets included approximately $90 million of cash and investments. The acquisition has been approved by the boards of directors of each company and is subject to the approval of stockholders of JNI Corporation, as well as other customary closing conditions and regulatory approvals. The acquisition is expected to close in the fourth quarter of this calendar year.

"Driven by new broadband applications and the resulting need for a secure, reliable, and scalable storage network, Fibre Channel technology has experienced mass market acceptance. JNI is positioned well in this growing market with an extensive, easy-to-use product line for both Solaris and Windows," said Dave Rickey, chairman, president and CEO of AMCC. "This acquisition significantly extends AMCC's networking silicon technology expertise beyond the Wide Area Network into the high-growth SAN market."

"The merger enables JNI to achieve cost and technology synergies with AMCC that will provide us with the scale necessary to achieve market leadership," said Russell Stern, president and CEO of JNI Corporation. "AMCC brings state of the art silicon infrastructure including physical layer and multi processor design expertise which is highly leveraged in host bus adapters. Combining with AMCC will drive greater value for our customers and enable us to leverage valuable intellectual property."

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