Gadzoox Networks Delivers Advanced Functionality with 10Gb Fibre Channel Intellectual Property Core

New 10Gb Speeds Signal the Convergence of SANs and LANs

San Jose, Calif.-- August 29, 2002 -- Gadzoox Networks, Inc., (OTCBB:ZOOX), a global supplier of innovative Storage Area Network (SAN) products, today announced the addition of 3Gb/4Gb and 10Gb Fibre Channel (FC) Media Access Controller (MAC) soft cores to the Company's recently announced FabriCore Engines technology suite. Gadzoox Networks is offering the new high-speed FC MACs to fulfill the demand being driven by the convergence of the SAN and Local Area Network (LAN) in 10Gb products.

The 10Gb FC MAC, offered by Gadzoox Networks, is the primary FC engine for ASICs that enable the convergence of FC and Ethernet networks. Research conducted by Gadzoox Networks indicates the first installations of 10Gb ready products will take place in the Data Center and will enable a 10Gb Ethernet LAN router or switch to include 10Gb FC ports for easy, simultaneous, high-speed communications with the SAN(s).

"The 10Gb space is beginning to heat up and those companies that want to get a jump on the next wave of storage networking and ensure they can compete are going to want to leverage our successful FabriCore Engines FC MACs," said Steve Dalton, Gadzoox Networks' President and CEO. "The growing storage industry has realized that proven FC technology is necessary to compete in the marketplace but they are also realizing that FC technology is not easy or cheap to develop. Gadzoox Networks is the only company to offer 1Gb/2Gb FC MACs and now the new high-speed FC MACs, which simplify and reduce development costs for our customers."

The FabriCore Engines 10Gb FC MAC offers customers key features such as, high-speed data rates, data path integrity checking and support for flexible industry standard interfaces. In addition, the 10Gb FC MAC supports the key FC-1 and FC-2 functions, link layer protocol, and framing and signaling, respectively.

While 10Gb speeds are on the horizon some storage customers, such as HBA, RAID controller and Disk Drive manufacturers are making the transition to 3Gb and 4Gb speeds now. To answer this demand Gadzoox Networks is also offering a 3Gb/4Gb FC MAC for the next generation of HBAs, RAID controllers, disk drives, and other storage products.

"3Gb and 4Gb speeds have been overshadowed by discussions of 10Gb but our recent customer engagements have indicated that there is a need for the 3Gb/4Gb FC MAC," continued Dalton. "Because Gadzoox Networks has such a strong FC development team we have been able to accommodate this demand very quickly and are offering our 3Gb/4Gb FC MACs now."

The new high-speed FC MACs offer customers a quick and simplified way to add advanced functionality to their products based on years of proven FC experience and expertise from Gadzoox Networks. The new FabriCore Engines FC MACs capitalize on Gadzoox Networks' seven years of FC development and expertise including nine patents, six patents pending and numerous other research and development accomplishments.

Pricing and Availability
The new FabriCore Engines 3Gb/4Gb FC MAC soft core is available today and the 10Gb FC MAC soft core will be available in the fourth quarter of 2002. Customers can obtain pricing information by contacting Gadzoox Networks at 408-360-4950 or sending an email to sales@gadzoox.com. Gadzoox Networks is also offering engineering support services for an additional fee to FabriCore Engines' customers. Customers are encouraged to visit www.gadzoox.com/fabricore to view more in-depth details about the FabriCore Engines offerings and capabilities.

About Gadzoox Networks
Since 1996 Gadzoox Networks has led the industry in market "firsts" and continues to drive the Storage Area Network (SAN) entry-level market with innovative Fibre Channel switching technology. The company has consistently delivered a time to market advantage to major OEM customers enabling them to create clear business value for their customer base. Gadzoox Networks is a voting member of the Storage Networking Industry Association (SNIA), with corporate headquarters located in San Jose, California. For more information about Gadzoox Networks' products and technology advancements in the SAN industry, visit the company's Web site at http://www.gadzoox.com.

NOTE: Gadzoox and the Gadzoox logo are registered trademarks of Gadzoox Networks, Inc. All other trademarks are property of their respective owners..