IntraServer Technology, Inc

IntraServer Technology, Inc. is a leader and pioneer in developing and manufacturing high performance low cost PCI-based SCSI Host Adapters and Network Adapters for SPARC, Alpha, and Intel -based systems. Founded in 1996, IntraServer develops and markets a complete line of innovative I/O solutions for systems ranging from microcomputers to large enterprise clusters.

LSI LOGIC TO PURCHASE INTRASERVER TECHNOLOGY, INC. IN $70 MILLION STRATEGIC ACQUISITION - FAQ's

These FAQ's are related to the press release May 17, 2000.

• How does this benefit LSI and IntraServer customers?
  
  IntraServer has developed a good reputation and is highly respected by the key computer and telecom OEMs and VARs worldwide. IntraServer tailors high performance solutions to specific OEM requests while maintaining the functionality required by the broader market comprised of VARs (Value Added Resellers) and Systems Integrators. There is very little overlap in the LSI Logic and IntraServer product lines. This acquisition will allow our customers to access a richer array of products while reducing their vendor base. These products range from high volume single and dual channel SCSI and FC boards, up to extremely high performance multifunction boards that could include SCSI, FC, Ethernet, and even graphics interfaces

• How does it make LSI’s host adapter board offerings more complete and competitive in the market place?
  
  IntraServer brings several key strengths which will help LSI be more competitive: - Multifunction system integration expertise - Light weight high performance new product development process enables fast time-to- market - Extensive operating system expertise including: Solaris, Tru64 UNIX, Open VMS, Windows NT, and Linux - Integration expertise including: interoperability testing - Cluster performance expertise - SAN interoperability expertise - Network interoperability expertise

• Why did we target a storage focused host adapter board company for acquisition? LSI Logic has been actively seeking strategic acquisitions in the storage area to help accelerate our already fast growing HAB (Host Adapter Board) business. With this acquisition LSI will benefit from IntraServer’s extensive international and domestic channel relationships. They have a unique technology and service reputation with more than 500 key Unix (SPARC and Alpha) integrators worldwide. Also the acquisition of IntraServer brings their high performance design team and access to a world-class engineering talent in the New England area. The availability of engineering talent and an extensive network of VARs and OEMs developed by IntraServer’s sales force is particularly important now while the industry is so strong and growth can be limited by a company’s ability to hire the necessary talent.

• Why is the storage host adapter board business strategic to LSI?
  
  LSI Logic is already a leader in the storage components marketplace, particularly in IC sales to Server, Workstation, and Storage Systems manufacturers. Our HAB business is rapidly growing and is critical to enabling OEMs to make choices as to which form factor works best for a particular application: chip down on the motherboard or a HAB included in a slot. Also when OEMs put LSI IC’s down on their motherboards, they expect support for HAB upgrades as options from the factory and in the field.

• What are the growth projections for the HAB market?
  
  Especially the SAN adapter/controller market is fast growing (CAGR of 106%) according to BancBoston Robertson Stephens through 2002. This is the primary area of focus and expertise for IntraServer.

• How many employees does LSI acquire as part of this deal?
  
  IntraServer brings about 30 total employees to LSI as a part of the agreement. More importantly these are carefully chosen, highly experienced engineers and sales and marketing professionals which will add immediate value to LSI. LSI Logic has worked closely with IntraServer from its beginnings in 1996. The two companies have repeatedly teamed to solve customer problems in the marketplace and have licensed software back and forth over the years. These two company teams already know how to work together.

• Will these new employees remain in the New England area?
  
  Yes. This team of people will continue to remain based in the New England area and LSI sees this as a benefit since many of the Storage Standard Product Division’s customers are in New England. This team strengthens our presence there.

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