Corporate Liaisons: MUSE Technologies To Purchase AVS. JNI And Brocade Form Alliance. Omnis To Merge With PICK Systems.

July 21, 2000

SHORT TAKES

MUSE TECHNOLOGIES TO BUY ADVANCED VISUAL SYSTEMS

Albuquerque, N.M. — MUSE Technologies, Inc., developer of advanced perceptual computing and collaboration software, announced that it has executed a definitive agreement to acquire Advanced Visual Systems, Inc. (AVS), an international leader in the field of data visualization. Under the terms of the agreement, MUSE will issue a maximum of 2.1 million shares of MUSE common stock (19% of outstanding shares) in exchange for all of the outstanding common and preferred shares of AVS and a maximum of 1.3 million shares subject to employee stock options. Additionally, MUSE will assume approximately $2 million of convertible debt of AVS from Kubota Corporation. The acquisition will be accomplished through the merger of AVS into a wholly owned subsidiary of MUSE and is expected to be accounted for as a pooling of interests transaction. The acquisition is subject to certain closing conditions and approval of the AVS stockholders. AVS management and certain stockholders have agreed to vote their shares in favor of the transaction, which is expected to close in Fall 2000.

Upon consummation of the acquisition, AVS will be renamed MUSE Advanced Visual Systems, and MUSE plans to relocate its corporate headquarters to Boston and maintain sales, marketing and technical operations in Albuquerque, Washington D.C., London, Manchester (UK) Frankfurt, Milan, Paris and Denmark. Both companies also have sales employees who operate from a number of other global cities. According to Brian R. Clark, President of MUSE Technologies, “After several months of planning and negotiation, we are extremely pleased to announce the execution of a definitive agreement between MUSE and AVS. The Boards of Directors, management, and employees of both companies are extremely enthusiastic about forming one of the world’s largest companies focused on data visualization and perceptual computing software and solutions.” Russ Barbour, President and CEO of AVS, noted, “The synergies between MUSE and AVS are quite compelling and we believe will produce a company of tremendous potential. Management and staff from both companies have already developed a host of sales, marketing and product strategies that we plan to deploy as soon as possible.” Upon completion of the AVS acquisition, the MUSE family of companies will include the Perceptual Computing group of MUSE Technologies, MUSE Advanced Visual Systems, MUSE Virtual Presence, MUSE SimTeam, MUSE Simulation Solutions, MUSEvrSource.com and MUSE Federal Systems Group. Together, these businesses are focused on providing a broad range of graphics software, hardware, systems integration and custom development solutions to corporate and government customers in an array of industries. Visit http://www.musetech.com for more information.

JNI AND BROCADE FORM STRATEGIC ALLIANCE

San Diego, CA — JNI Corporation and Brocade Communications, Inc. (BROCADE), a leading supplier of Fibre Channel fabric solutions for Storage Area Networking, announced a strategic alliance between the two companies. As part of the BROCADE Fabric Aware and JNI SANpartners interoperability programs, BROCADE and JNI will collaborate on product development, service and support, and marketing and sales initiatives to advance the adoption of open Storage Area Networks (SANs) in enterprise environments. BROCADE is a leading provider of Fibre Channel fabric switches and JNI is the fastest growing and host bus adapter (HBA) vendor in the Fibre Channel market. The companies will work together to provide customers with optimized functionality using the combination of BROCADE SilkWorm Fibre Channel fabric switches and JNI FibreStar HBAs, in order to support the requirements of today’s high-performance SAN environments and applications. Development is expected to include performance enhancement, network management, and auto speed-sensing and negotiation for new-generation Fibre Channel technologies.

“We are pleased to enhance our long-standing relationship with JNI and expand the options for our customers in choosing open, standards-based products for their storage networking environments,” said Greg Reyes, president and CEO of BROCADE. “As the SAN market continues to evolve, the need to interconnect islands of data in a heterogenenous environment is a crucial SAN requirement. Through our alliance with JNI, BROCADE is furthering its commitment to enable multi-vendor SANs as the networking foundation for storage.” “BROCADE has been the model for technical, product and marketing development in the Fibre Channel industry and JNI has made interoperability with BROCADE switches a top priority,” said Terry Flanagan, Ph.D., president and CEO of JNI. “We are forming this strategic alliance to assure our customers continue to receive best-of-class products that connect in an open, multi-vendor environment.” JNI and BROCADE have cooperated on a number of initiatives. Most recently BROCADE joined JNI’s SANpartners program (announced June 14) and JNI became a charter member of the BROCADE Fabric Aware program (announced June 27). JNI also recently supported the Fibre Channel industry’s adoption of the BROCADE inter-switch routing protocol (FSPF), which has been agreed to by the NCITS Technical Committee T11 as the standard for interswitch interoperability. Visit http://www.brocade.com or http://www.jni.com for more information.

OMNIS TECHNOLOGY TO MERGE WITH PICK SYSTEMS

San Carlos, CA — Omnis Technology Corporation announced a preliminary agreement to merge with Irvine, Calif.-based PICK Systems, Inc., a private company and the technological leader and owner of the PICK multi-dimensional database technology. The transaction is targeted to close by the end of July subject to shareholder approval and the negotiation of a definitive agreement. Senior management of PICK Systems will assume responsibilities for the new company, with Gil Figueroa, current president and CEO of PICK, serving as the new CEO of the combined organization. Gwyneth Gibbs will remain as president of the Omnis Development Tools division. Headquarters for the merged organization will move to the PICK Systems offices in Irvine, CA.

“The need to embrace software solutions that deliver cost-effective business performance at a fraction of the cost of other competitors has become paramount,” said Figueroa. “The marriage of our multi-value database technology with Omnis’ component-based GUI development tools enables customers of both companies to develop complete applications in the most user-friendly and cost-effective environment available. We are committed to providing continued support for all products and will be adding to the list of services and capabilities that we offer shortly.” “The time is now to combine the best of our experiences and technology and to continue to address a business problem that is familiar to us,” said Jim Dorst, COO and CFO of Omnis. “Gil and his team are bringing a strong vision that will enable all of our customers to succeed in the Internet age. Our combined focus and business strategies will result in better products that address the myriad of technology issues with a single comprehensive elegant suite of products that perform, are feature-rich, and are delivered at web speed.” On a proforma basis, the combined companies had approximately $23.5 million in revenues for fiscal 2000 and more than 200 employees worldwide. PICK Systems’ 2000 fiscal year ended February 28 while Omnis’ ended March 31.

DRS TECH GETS $3.8 MILLION GOVERNMENT COMPUTER PACT

Parsippany, N.J. — DRS Technologies, Inc. announced that it has been competitively awarded a $3.8 million contract, including options, from the U.S. Government to provide UltraSPARC II computer network servers for worldwide field deployment. DRS Technologies teamed with Sun Microelectronics, a division of Sun Microsystems, Inc., Mountainview, California to capture the award, which has a base value of $1.3 million. For this order, the company’s DRS Advanced Programs unit in Columbia, Maryland, will design, integrate, test and deliver second-generation TEMPEST rack-mounted servers incorporating Sun(R) UltraSPARC II microprocessor technology. Product deliveries are expected to begin later this month.

Mark S. Newman, chairman, president and chief executive officer of DRS Technologies, stated, “DRS is a recognized leader in TEMPEST computer systems for special government applications. Our strategic teaming arrangement with Sun Microelectronics has provided us with the ability to integrate leading edge commercial computing technology to provide cost-effective, reliable, field-deployable system solutions for our customer. Through enhancements and upgrades, we continue to demonstrate our ability to reduce product costs while improving portability, processing power, speed, data capacity and display performance to meet critical requirements for a variety of government missions around the world.” DRS has delivered over 3,000 SPARC based computer workstations, servers and other peripheral equipment to this customer under separate programs for more than five years and has been a systems integrator for the government for over 30 years. These high-performance systems are designed specifically for a variety of unique government applications. The new rack-mounted servers produced for this award will include the Sun Solaris operating system and a SPARC engine Ultra AXmp motherboard. They will utilize four high-speed UltraSPARC II processors operating at 450 MHz with 18 GB each of data storage and 2 GB of memory.

SST AND APACER TECHNOLOGY IN PACT

Sunnyvale, CA — SST (Silicon Storage Technology, Inc.) and Apacer Technology Inc., an Acer Group company, announced that the two companies have entered into a strategic partnership which in part will allow Apacer to second source SST’s flash ATA-Disk Chip (ADC) product (announced on July 10). This move underscores the anticipated widespread adoption of SST’s ADC products in the embedded mass data storage market as a replacement for conventional IDE hard disk drives, especially in Internet Appliance (IA) applications. Apacer, a wholly-owned subsidiary of the world’s third largest computer manufacturer, Acer Inc., is focused on manufacturing and sales of DRAM and flash memory modules. With rapidly growing sales of over $400 million expected for the year 2000, Apacer has a well-established channel presence and close relationship with personal computer and Internet Appliance system manufacturers worldwide. Under this accord, SST will license its ADC design, based on SST’s proprietary SuperFlash ATA controller and firmware, to Apacer. Apacer agrees to use SST’s ATA controller and firmware exclusively to manufacture and sell ADC products. Both SST and Apacer plan to have volume shipments of its initial ADC products by August 2000.

“We believe that this second-source partnership with Apacer will help satisfy the projected demand by the industry for our ADC design,” said Bing Yeh, president and CEO of SST. “We expect that demand for the ADC product will grow even more as the digital electronics and Internet Appliance markets continue to require smaller and more cost-effective embedded mass data storage solutions. The superior manufacturing efficiency and product distribution logistics provided by Apacer will undoubtedly help meet the market appetite for this product line.” “We are excited that our entrance into the embedded mass data storage market is highlighted by a second-source partnership with SST, a flash technology leader,” said Austin Chen, president, Apacer Technology Inc. “We found that SST’s ATA controller and firmware solution provide the best-in-class technology for our customer’s needs in the Internet Appliance markets. We believe that the additional resources and channels of Apacer will help propel SST’s proprietary ATA controller and firmware as the solution-of-choice for embedded mass data storage applications.” Visit http://www.ssti.com for more information.

MICROSOFT PURCHASES GADZOOX CAPELLIX SWITCH

San Jose, CA — Gadzoox Networks, Inc., a leading provider of SAN (storage area network) products, announced that its Capellix switch has been purchased by Microsoft as part of reference systems for the development labs used at Microsoft for the testing of multi-node clustering for Windows 2000. Microsoft chose the Capellix SAN switch for testing environments because of the switch’s affordability, scalability and cost performance. This marks Gadzoox’ continued commitment to delivering open, interoperable and scalable solutions for high availability e-Business application environments. “Gadzoox’ Capellix switch along with Windows play a key role in extending our leadership in e-Business solutions by providing the high availability, scalability and performance of our server and cluster services products,” said Dave Bachand, Eastern Connecticut State University manager of network support and services. “The scalability and interoperability of the Capellix switch, along with Gadzoox’ expertise in storage area networking, has enabled us to rapidly integrate and deploy the systems required for e-Business clustering environments.”

“The scope of business-critical information has expanded exponentially as more users have become reliant on growing amounts of data,” said Bill Sickler, Gadzoox Networks president and CEO. “To ensure uninterrupted business operations, enterprise users are seeking more robust systems that can provide continuous availability of this information. The high scalability offered by Microsoft’s multi-node clustering and Gadzoox’ Capellix modular SAN switch take high availability clusters to a new level to effectively address the increasing demands of enterprise users.” With the highest number of switch ports in its class, the Capellix 3000 provides cost-effective and simplified connectivity for large server clusters. Unlike lower port count switches that waste half of their ports on inter-switch links in order to create a scalable mesh, the Capellix 3000 can connect a 32-node cluster with a single switch. When compared to the five 16-port switches that would be required for a comparable cluster, the Capellix 3000 represents savings of over $100,000 when compared to competitive solutions. Powered by the TPC-C 28-gigabit per second switching engine, the Capellix 3000 can also provide higher performance since it does not suffer from the effects of inter-switch congestion which can “block” the flow of data. To help ensure interoperability with servers, storage and other switches, Capellix is the only switch in the industry designed purely to open standards rather than the proprietary fabric protocols used in other switch products.

MTI AND CROSSTOR ANNOUNCE OEM AGREEMENT

South Plainfield, N.J. — CrosStor Software, Inc. announced that it has entered into an agreement with MTI Technology Corporation to release a product line of high-availability, network-attached storage systems. Under the agreement, MTI is incorporating CrosStor’s NAS storage-centric operating system into their high performance, feature-rich, multi-protocol file servers for both UNIX and Microsoft Windows clients. The products will be marketed through MTI’s direct sales force for enterprise configurations requiring hundreds of gigabytes to terabytes of storage. “CrosStor NAS’s features, performance and seamless integration of the CIFS and NFS protocols make it the best choice for implementing MTI’s NAS strategy,” said Dan Brown, MTI’s senior vice president of engineering. “MTI’s enterprise customers require the high performance, availability and multi-protocol filer capabilities that we and CrosStor have designed to deliver.”

The agreement formalizes MTI’s rigorous evaluation of CrosStor NAS within a variety of MTI product platforms. “MTI was able to take CrosStor’s binary software and APIs, easily integrate its key differentiators and, in record time, enter the market with a product that is designed to effectively compete in today’s fast-growth NAS marketplace,” said Jeff Helthall, CrosStor’s vice president of sales and marketing. “Its focus on integrated, cross-platform storage puts MTI at the cutting edge of network storage solutions, and makes this partnership a highly strategic relationship for CrosStor.” CrosStor NAS is a complete, programmable, operating system for network-attached storage (NAS) appliances. With CrosStor NAS, OEMs can quickly turn any hardware storage system into a high-performance, feature-rich, multi-protocol file server for both UNIX and Microsoft Windows clients, easily supporting from a few gigabytes to multiple terabytes of storage. Visit http://www.crosstor.com or http://www.mti.com for more information.

ENLIGHTEN ANNOUNCES PARTNERSHIP WITH TEAMLINUX

San Mateo, CA — Enlighten Software Solutions, Inc., a provider of integrated event monitoring and system management software for Linux, Unix and Windows, announced an alliance with TeamLinux Corporation, a leading supplier of integrated support solutions enabled by Linux and open source technologies. The two companies will provide businesses with a comprehensive single point of control for workgroup administration and event-monitoring solutions across the enterprise. The partnership features the integration of Enlighten’s EnlightenDSM with the TeamLinux strategic suite of professional services.

“We are excited about this alliance as it will provide Enlighten Software with global access to corporate users who are ready to integrate Linux into their existing enterprise,” said Bill Bradley, President and Chief Executive Officer of Enlighten Software Solution. “Partnering with TeamLinux for the distribution of Enlighten’s proprietary EnlightenDSM is another example of our successful strategy to deliver value to end users through partnerships with major industry leaders. In addition to this broader exposure with more Linux users, we anticipate benefiting from an additional revenue stream.” “Partnering with a prestigious company like Enlighten moves TeamLinux closer to the realization of our goal to become the preeminent provider of Linux and open source support services,” commented Dan Maher, TeamLinux Chairman and CEO. “The comprehensive single point of contact this partnership creates will bring substantial value to enterprise operations around the world.” For more information, please visit http://www.EnlightenDSM.com .

BOEING SIGNS AGREEMENT TO COMMERCIALIZE SOFTWARE

Seattle, WA. — The Boeing Company has signed an agreement with Unigraphics Solutions Inc. to commercialize the Boeing Parametric Composite Knowledge System (PACKS). The agreement grants Unigraphics Solutions the right to enhance the Boeing-patented process with additional improvements, and to exclusively market and sell PACKS software. The tool will become the core of a new composite module that will be integrated with the Unigraphics high-end CAD/CAM/CAE application. “PACKS provides design consistency and embedded knowledge capturing proven engineering practice,” said John Coyle, Director of Lean Engineering, Boeing Military Aircraft and Missile Systems. “Unigraphics Solutions will combine this knowledge with their robust modeling system.”

“Unigraphics Solutions’ technical expertise in the design, development and integration of CAD tools and Boeing’s composites expertise make this relationship a win-win for both,” Coyle added. PACKS was developed by Boeing as an affordability initiative to reduce the design cost of structural composites by at least 50 percent. Developing links to manufacturing early in the design cycle exceeded the goals of the initiative. Studies conducted by Boeing have found that promotion of concurrent engineering improves quality while reducing cost and time to release. “Unigraphics Solutions’ new composite module embodying the Boeing PACKS will be effective for any composite structure, aerospace and non-aerospace,” said George Peters, Director, Aerospace Region at UGS. “And since the process is generic, it applies to a wide variety of applications. Savings metrics are directly proportional to part difficulty; the greater the part thickness and complexity, the greater the savings. Future enhancements of the composite module will take advantage of Knowledge Based Engineering and include a flattener, laser projection and links to Finite Element Analysis software.” Visit http://www.boeing.com for more information.

CALDERA AND TARANTELLA JOIN FORCES

Orem, UTAH — Caldera Systems Inc. and Tarantella Inc. a wholly owned subsidiary of The Santa Cruz Operation Inc., announced the first bundling of Tarantella Web-enabling software in the Linux space. This solution, Caldera OpenLinux Application Server with Tarantella, provides centralized management and deployment of applications on a fast, stable and low-cost platform simplifying IT responsibilities while reducing business costs. OpenLinux Application Server enables authorized users with a Java technology-enabled browser to run existing Windows, Linux and UNIX applications through the company’s local area network or remotely through the Internet – even on a dial-up connection. In addition, companies can instantly deliver new Web-based and existing legacy applications to their users without code rewrites.

“Much of IDC’s research has shown that Linux is finding a home supporting Web and network infrastructure in many organizations,” said Dan Kusnetzky, vice president of system software research for IDC. “The combination of SCO’s virtual user interface serverware, Tarantella, and Caldera’s OpenLinux eServer allows organizations to take that one step further. Now users will be able to access applications running on Windows, UNIX or Linux as easily as the new Web-based applications.” “I know many companies who want to keep their existing infrastructure in place and yet take advantage of the low-cost, stability and reliability of OpenLinux. This specialized server allows them to do just that,” said Ransom Love, president and chief executive officer for Caldera Systems Inc. For more information, see http://www.calderasystems.com or http://www.tarantella.com .

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