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CORRECTED - ALACRITECH APPOINTS NEW BOARD MEMBER

33-year Technology and Financial Industry Veteran to Lend Strategic Insight as Company Enters Next Phase of Growth

San Jose, Calif. — July 27, 2005 — Alacritech® Inc., the innovator of Dynamic TCP Offload™ data acceleration solutions that enable the highest performance and efficiency in networked systems, today announced the appointment of Barry X Lynn to its Board of Directors. Lynn is a director at Shoreline Venture Management, serves as the president and CEO of Be eXceL management, Inc. and is also chairman and director of other emerging companies. Lynn brings over 33 years of experience in the information technology, financial services and securities industries, and will lend strategic business, customer and partner insight to Alacritech as it continues to expand its Accelerator product lines and secure additional licensing business.

“We’re pleased to have attracted Barry X Lynn, a seasoned technologist and financial services executive with a history of guiding innovative, high-growth companies,” said Larry Boucher, president and chairman of the board, Alacritech Inc. “With the industry standardizing on Alacritech’s SLIC Technology, Barry’s extensive knowledge of business, customer and partner strategies will provide timely, strategic insight to Alacritech as scalable networking technologies move into the broad market.”

“Alacritech owns key I/O technology that is critical to efficient information delivery as network speeds increase,” said Barry X Lynn, director, Shoreline Venture Management, LLC. “The company’s foresight has resulted in significant partnerships and revenue opportunities. Alacritech will play a key role in achieving my passion — working with companies that marry information and networks, creating information utilities where all information, no matter where it is, and no matter what format it is in, can be easily accessed by anyone, anywhere, anytime.”

About Barry X Lynn
In addition to serving as director at Shoreline Venture Management and president and CEO of Be eXceL management, Lynn also serves as chairman of Callixa Corporation; director of Attune Systems; director of Layer 7 Technologies; chairman of 3TERA, Inc.; advisor to Primitive Logic and principal of Where Eagles Soar. He has also served as director of publicly-traded Merant (NASDAQ: MRNT). Prior to founding Be eXceL, Lynn was with Wells Fargo for 16 years, serving last as president of Wells Fargo Technology Services.

About Shoreline Venture Management, LLC
Shoreline Venture Management, LLC is a venture capital firm based in the San Francisco Bay Area. Shoreline was established in 1998 to manage the Shoreline Venture Partners funds (SVP I and SVP II), as well as future investment funds. To date, Shoreline has invested primarily in early stage businesses, having committed capital to several companies, and continues to evaluate new opportunities. The company’s portfolio includes Alacritech Inc.; Attune Systems; Callixa; Zomanex™; Itellidot; Xtegra; Layer 7 Technologies; Lifeline Technologies; Aryx Therapeutics and Speedchain Networks. Shoreline Venture Management directors’ independent private equity investments have included: Sun Cobalt, Hall Kinion, Cambric, Rheodyne and CV Therapeutics among others.

About Alacritech, Inc.
Alacritech, Inc. is the world’s leading supplier of standards-based scalable networking technology and solutions that enable the highest performance and efficiency in networked systems. As the first to envision a dynamic network protocol processing architecture that enables systems to scale to address ever increasing data and network speeds, Alacritech developed and patented the SLIC Technology® architecture. Alacritech’s complete line of Accelerators, based on this architecture, optimize data delivery in servers, network-attached storage and iSCSI storage devices. SLIC Technology, the basis of industry-accepted TOE solutions, ships in storage and server products worldwide. Alacritech is a privately held company based in San Jose, California. For more information about Alacritech and its products, please visit the company’s Web site at www.alacritech.com.

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Alacritech, the Alacritech logo, SLIC Technology, SLIC Technology logo, Accelerating Data Delivery and Dynamic TCP Offload are trademarks and/or registered trademarks of Alacritech, Inc. in the United States. Other marks belong to their respective owners.


Press Contacts:

Keith Parker
Alacritech, Inc.
Tel: 408.487.5781
kparker@alacritech.com
  Cristina Gutierrez
Blanc and Otus
Tel: 415.856.5159
cgutierrez@blancandotus.com