Ciprico Announces Workforce Restructuring; Retention of Investment Banking Firm to Explore Strategic Options

  
    
  
  
    
      Ciprico Inc. (NASDAQ: CPCI) (the “Company”) 
      today announced that it has reduced its full-time headcount by 
      approximately 30%. Steve Merrifield, president and CEO of Ciprico 
      stated: “This action was necessitated by an 
      insufficient volume of sales. Current business and economic conditions 
      have caused a sharp decline in sales of our traditional video storage 
      products, while our newer IT class products are taking longer than 
      expected to be qualified at current and prospective customers.”
    
    
      As a result of the above, the Company believes its revenue ramp is 
      delayed approximately six months causing the Company to take action to 
      reduce expenses. As previously announced the Company is exploring 
      strategic alternatives, and to assist with this the Company has retained 
      Craig-Hallum Capital Group LLC, a Minneapolis-based investment banking 
      firm.
    
    
      “Revenue projections for fiscal year 2008 will 
      not reach the levels anticipated,” Merrifield 
      said. “Over the past 18 months we have worked 
      to transition Ciprico to become a more software centric company. We 
      continue to be optimistic about the future of our new technology 
      platform as confirmed by more than 200 companies now evaluating our new 
      RAIDCore adapters and VST software solutions. There remains a strong 
      commitment to our software virtualization strategy and we remain 
      confident that the overall transition from hardware to virtualized 
      software data protection will emerge as the dominant solution in the 
      market over the next several years.”
    
    
      Safe Harbor Statement under the 
      Securities Reform Act of 1995
    
    
      This press release includes forward-looking statements that involve risk 
      and uncertainties that could cause actual results to differ materially 
      from the forward-looking statements. Such forward-looking statements, 
      which reflect our current view of expected revenue growth in fiscal 
      2008, product development efforts and impact on new product sales, and 
      other future events and financial performance, involve known and unknown 
      risks that could cause actual results and facts to differ materially 
      from those expressed in the forward-looking statements for a variety of 
      reasons. These risks and uncertainties include but are not limited to: 
      delays in product development; market acceptance of Ciprico's products 
      and services; technological change in the storage and related 
      industries; competition in the storage software market; the potential 
      failure of Ciprico’s partners to introduce 
      products incorporating Ciprico's products; intellectual property issues; 
      and other risk factors discussed in Ciprico's reports on Forms 10-KSB, 
      10-QSB and other reports filed with the Securities and Exchange 
      Commission. Investors should take such risks into account when making 
      investment decisions. Forward-looking statements speak only as of the 
      date on which they were made, and except as required by law; we assume 
      no obligation to update any forward-looking statements. We do not intend 
      to update or revise any forward-looking statements whether as a result 
      of new information, future events or otherwise.
    
    
      About Ciprico
    
    
      Ciprico Inc. (NASDAQ: CPCI) is a leading provider of intelligent storage 
      software, solutions and appliances for enterprise class IT servers, 
      professional workstations and digital media workflows. More information 
      about Ciprico is available at www.ciprico.com.