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ALACRITECH ACHIEVES ENGINEERING MILESTONE; 10GbE DESIGN ON SCHEDULE FOR EARLY 2008

SAN JOSE, Calif. – January 22, 2008 – Alacritech Inc., the leader of innovative data-delivery technology, announced today that it has successfully taped-out its 10GbE ASIC design. Working in conjunction with Open-Silicon, Inc., a fabless ASIC company, Alacritech met its scheduled tape-out target date for this fifth generation TCP/IP Offload 10GbE ASIC. Alacritech targets the first half of 2008 to have 10GbE accelerators, incorporating the new ASIC, in the hands of the Tier 1 server OEMs. All of the industry’s major OEMs have agreed to evaluate Alacritech’s 10GbE technology on the merits of the company’s history and leadership in TCP/IP Offload Engines (TOE). Accelerators will also be placed in the hands of strategic end-customers in early 2008.

Alacritech’s 10GbE design represents a monumental technical breakthrough for the company. The mantra for the company has long been performance and Alacritech’s current and future customers won’t be disappointed. "We’ve learned a great deal from our previous designs," said Larry Boucher, president of Alacritech. "Building a tightly designed custom ASIC that maximizes overall system performance while maintaining excellent power efficiency is always a challenge and the team has managed to assemble what promises to be our best technology to date and for a market that is ready to take full advantage of TOE in a 10Gb environment."

“We believe 10GbE combined with TOE will play a central role in unifying storage and networking as server virtualization takes on increasing importance in delivering IT as a service to users,” said Doug Rainbolt, Alacritech’s vice president of Sales and Marketing. “The combination of 10GbE support, server virtualization, processors that are optimized for virtualization, TCP/IP Offload Engines and iSCSI SANs will be powerful tools in shaping the future of data-centers focused on performance, resource optimization, management simplification and data protection. It also helps to have a powerhouse such as Microsoft standing behind Alacritech TOE technology through its TCP Chimney Offload offering standard to Windows Server 2008 as a key enabler to servers operating in these environments.”

About Alacritech
Alacritech is the leading provider of innovative technology that increases the speed, power and performance of servers, enabling a truly scalable network. Organizations that use Alacritech's proven technology are better able to reduce the burden of network processing on their server, scale to support more clients and applications, achieve higher performance and realize increased network utilization. For more information visit the Alacritech web site at www.alacritech.com or contact the company at info@alacritech.com.

Contact:
Ignite PR/IR Consulting
Kathleen Bermea-Sullivan
720-480-5501
alacritech@igniteconsultinginc.com