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QLogic to Acquire SilverStorm Technologies
QLogic's InfiniBand Portfolio to be Expanded with Clustered Server Networking Solutions for High Performance Computing Environments

ALISO VIEJO, Calif., Oct 03, 2006 (BUSINESS WIRE) -- QLogic(R) Corporation (Nasdaq:QLGC), the leader in Fibre Channel host bus adapters (HBAs), stackable switches and blade server switches, today announced that it has entered into a definitive agreement to acquire SilverStorm Technologies, Inc. Pursuant to the terms of the agreement, the Company will pay approximately $60 million in cash. The acquisition has been approved by the board of directors of each company and is expected to close following the satisfaction of customary closing conditions. Based on current projections, the Company anticipates that the acquisition of SilverStorm will be neutral to its non-GAAP earnings per share for fiscal year 2007. The Company will provide additional details regarding the acquisition during its second quarter fiscal 2007 earnings conference scheduled for October 24, 2006.

"The acquisition of SilverStorm builds on our portfolio of InfiniBand connectivity technology which will provide our customers with a leading edge, end-to-end solution," said H.K. Desai, the Company's chief executive officer and president. "This is a rapidly emerging market and having a known and trusted supplier of infrastructure connectivity products, delivering an end-to-end solution, will accelerate the ability of our OEM and channel partners to bring their system level solutions to market."

SilverStorm Technologies provides end-to-end, high performance interconnect fabric solutions for cluster and grid computing networks. SilverStorm products address the unique performance and I/O requirements of enterprise class servers, blade servers and storage devices as data center architecture building blocks.

"The synergy created by SilverStorm's industry leading technology and QLogic's strong market presence will drive our expanded market share growth," said Russ Hawkins, chief executive officer of SilverStorm. "We are pleased to be part of the QLogic team and look forward to playing an integral part of QLogic's ongoing success."

About QLogic

QLogic is a leading supplier of high performance storage networking solutions including Fibre Channel host bus adapters (HBAs), blade server embedded Fibre Channel switches, Fibre Channel stackable switches, iSCSI HBAs, iSCSI routers and storage services platforms for enabling advanced storage management applications. The Company is also a leading supplier of server networking products including InfiniBand host channel adapters that accelerate cluster performance. QLogic products are delivered to small-to-medium businesses and large enterprises around the world via its channel partner community. QLogic products are also powering solutions from leading companies like Cisco, Dell, EMC, Hitachi Data Systems, HP, IBM, NEC, Network Appliance and Sun Microsystems. QLogic is a member of the S&P 500 Index. For more information, go to http://www.qlogic.com.

Note: All QLogic-issued press releases appear on the Company's website (www.qlogic.com). Any announcement that does not appear on the QLogic website has not been issued by QLogic.

About SilverStorm Technologies

SilverStorm designs, manufactures and services a family of networking hardware and software products that dramatically improve cluster performance and scalability. SilverStorm solutions power some of the world's largest supercomputers in diverse fields including Oil and Gas exploration, Automotive and Aerospace design, Financial Services, Bio Medical and University/Government Research. SilverStorm's customers include AMD, Canon, Chevron, Intel, Lockheed Martin, NASA, Riken Research Institute, Sandia National Laboratories, Sun Microsystems, Toyota, the US Department of Defense and Virginia Tech University. Several of the world's TOP500 supercomputers utilize SilverStorm products. SilverStorm is also a member of Blade.org, a collaborative organization and developer community focused on accelerating the expansion of blade solutions and the IBM and Intel blade ecosystem. For more information, visit www.silverstorm.com.

Disclaimer - Forward-Looking Statements

This press release contains statements relating to future results of the Company (including certain beliefs and projections regarding business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The Company advises readers that these potential risks and uncertainties include, but are not limited to: potential fluctuations in operating results; gross margins that may vary over time; revenues may be affected by changes in IT spending levels; the stock price of the Company may be volatile; the Company's dependence on the storage area network market; the ability to maintain and gain market or industry acceptance of the Company's products; the Company's dependence on a limited number of customers; seasonal fluctuations and uneven sales patterns in orders from customers; the Company's ability to compete effectively with other companies; declining average unit sales prices of comparable products; a reduction in sales efforts by current distributors; dependence on sole source and limited source suppliers; the Company's dependence on relationships with certain silicon chip suppliers; the complexity of the Company's products; sales fluctuations arising from customer transitions to new products; the uncertainty associated with SOX 404 compliance; environmental compliance costs; terrorist activities and resulting military actions; international economic, regulatory, political and other risks; uncertain benefits from strategic business combinations; the ability to attract and retain key personnel; recognition of compensation expense related to employee stock options and the Company's employee stock purchase plan; the decreased effectiveness of equity compensation; difficulties in implementing smaller geometry process technologies; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; reliance on third party licenses; the use of "open source" software in our products; changes in our tax provisions or adverse outcomes resulting from examination of our income tax returns; computer viruses and other tampering with the Company's computer systems; and facilities of the Company and its suppliers and customers are located in areas subject to natural disasters.

More detailed information on these and additional factors which could affect the Company's operating and financial results are described in the Company's Forms 10-K, 10-Q and other reports filed, or to be filed, with the Securities and Exchange Commission. The Company urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. The forward-looking statements contained in this press release are made only as of the date hereof, and the Company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

QLogic and the QLogic logo are registered trademarks of QLogic Corporation. Other trademarks and registered trademarks are the property of the companies with which they are associated.

SOURCE: QLogic Corporation

QLogic Corporation
Editor's Contact:
Christine Flavio, 650/934-8057
christine.flavio@qlogic.com
or
Investor's Contact:
Tony Massetti, 949/389-7533
tony.massetti@qlogic.com