Features - Enterprise Data Insights:

XIOtech TARGETS CONTINUED GROWTH WITH OAK INVESTMENT PARTNERS

Network storage pioneer XIOtech Corporation announced recently that Oak Investment Partners has made a significant equity investment in the Company, with the goal of accelerating the growth of XIOtech. Oak has 25 years of experience financing and nurturing companies to be market leaders. XIOtech Corporation, already the fastest growing Storage Area Networking (SAN) company in the world for 2000 and 2001 according to IDC, will use the partnership with Oak to target continued growth in the storage market.

"The investment by Oak will assist in creating greater opportunities for XIOtech," said Kathy Snouffer, XIOtech's CEO. "Oak's longstanding history in bringing companies to market leadership will help us drive to capture greater market share and build on our strong, global foundation. Oak's experience investing in the storage industry and their extensive strategic and technical expertise in the field will help us innovate and meet the needs of our expanding customer base."

"XIOtech's adaptive storage foundation gives enterprises the scalability and ease of use to effectively manage and fully utilize their storage resources," said Ed Glassmeyer, founding general partner of Oak Investment Partners. "We're confident that XIOtech will continue to outpace the industry in growth and delivering customer value."

"In addition to their equity ownership position in XIOtech by Seagate Technology's parent, New SAC, Seagate has formalized its strategic partner relationship with XIOtech," said Don Waite, Seagate executive vice president and Chief Administrative Officer. "Seagate and New SAC are pleased with Oak's investment in XIOtech and with Seagate's ongoing partnership. Oak was attracted to XIOtech by its virtualized storage architecture technology, its revenue ramp and refinements in the business model to focus on core strengths. The addition of Oak's resources and experience will further extend the value XIOtech can deliver to its customers and strategic partners."

About XIOtech

XIOtech Corporation develops comprehensive networked storage solutions and was the first in the industry to develop true storage virtualization. XIOtech's virtualized storage architecture -- composed of the MAGNITUDE hardware platform and REal-Time Data Intelligence (REDI) software family -- incorporates all the components of networked storage foundation into a tightly integrated, easy-to-manage, highly available configuration. XIOtech's storage architecture makes storing, managing, safeguarding, and retrieving data on heterogeneous computing platforms easy and cost effective. For more information, visit XIOtech's Web site at www.xiotech.com, call 952-983-3000, or email info@xiotech.com.

About Oak Investment Partners

Oak Investment Partners is a growth-oriented private equity firm with a total of $4.2 billion in committed capital. Investments are primarily focused on growth opportunities in enterprise application and infrastructure software, telecommunications equipment and services, data storage, outsourced services, healthcare services, and retail. Over our 25-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 350 companies at various points in their lifecycle. Oak has been involved in the formation of companies, provided growth equity to mid- and late-stage businesses, and financed management-led buyouts, as well as spinouts of operating divisions and technology assets. Representative Oak investments include Compaq, Seagate, Polycom, Synopsys, and Wireless Facilities. Oak is online at www.oakinv.com.

Contact: Rachel Gold of XIOtech Corporation, 952-983-2278, rachel--gold@xiotech.com.