Short Takes - Financial Watch:

Auspex Reports Second Fiscal Quarter 2003 Results

Auspex Systems Inc, a leader in the Network Attached Storage market, has reported results for its second quarter 2003 ended December 31, 2002.

Revenues for the second quarter ended December 31, 2002, were $5.3 million versus $6.0 million in the prior quarter, a 11% decrease. The net loss for the second quarter was $6.8 million, or $.15 per share, compared with a net loss of $7.9 million or $.17 per share in the prior quarter. Improvements in Net Loss quarter over quarter were due to improved product margins and continued expense reduction.

Sales of the NSc3000 Network Storage Controller increased quarter over quarter, with sales in Europe, Asia and North America. We saw deployments of our technology in conjunction with SANs from IBM, HDS, EMC and others. In addition, we sold a Cognistor powered application to provide change based archiving and back up into a software development environment.

"This past quarter saw improvements in cash flow, operating expense and net loss," said Gary J. Sbona, Chairman and Chief Executive Officer. "Revenues benefited from our strategy of pursuing the SAN/NAS convergence market, partnering with the major SAN storage players and developing software to extend the value of NAS into vertical market segments."

Special Note

While the Company has reduced both it's operating loss and cash burn in Q2FY03, there is still doubt that the Company's existing cash, cash equivalents and short term investments will be sufficient to meet its working capital and capital expenditure requirements for the remainder of fiscal year 2003. While we are currently pursuing efforts to substantially increase revenue in the near future, we can provide no assurances that these efforts will be successful. If we are not successful, the company will have to cease operations or engage in additional significant cost reduction measures in the near term that would affect our ability to compete in the markets we serve. Additionally, the company is seeking to raise additional capital, but such capital may not be available. The Company will also explore other potential options, such as a merger or sale, however such efforts may not be successful. For additional information on risks and uncertainties, see the company's public reports filed with the SEC, including the company's Form 10-K for the 2002 fiscal year.

Earnings Conference Call

To participate in the conference call, please call on February 20, 2003, @ 1:30 p.m. PDT, please dial 888-881-4892 domestically, or 416-640-4127. Internationally. Call between 4:15pm and 4:25pm, Eastern Time (1:15pm and 1:25pm, Pacific Time) to allow enough time to connect into the call. This is a regularly scheduled quarterly teleconference with interested members of the investment community. There will be a 7-day replay of the conference call beginning one hour after the conference call ends. To access the replay, dial (US) 877-289-8525 or (International) 416-640-1917 and enter the passcode "237747."

Auspex is also offering a web cast of our earnings call at www.auspex.com.

About Auspex Systems

Auspex introduced the world's first Network Attached Storage (NAS) server shortly after its founding in 1987, creating a new breed of storage appliance offering significant performance and administrative benefits over general-purpose file servers. Auspex's enterprise-class network servers are used worldwide for consolidated information storage and delivery. Auspex also is leading the convergence of NAS with Storage Area Networks (SANs) with the NSc3000 Network Storage Controller, the first multivendor SAN-to-NAS gateway. The company is headquartered in Santa Clara, California, with sales offices and channel partners throughout the U.S. and around the globe. Its shares are traded on the Nasdaq Smallcap Market under the symbol ASPX. For more information, call 800-4AUSPEX (800-428-7739) or 408-566-2000, or visit www.auspex.com.