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IBM TO OFFER EXABYTE VXA-2 WITH eSERVER xSERIES SERVERS

Exabyte Corporation, a performance and value leader in tape backup systems, has announced that IBM will offer Exabyte's next-generation VXA-2 tape drive as an optional internal storage component for its IBM eServer xSeries line of Intel processor-based servers. VXA-2 will be available in xSeries servers beginning May 9. With a price point similar to DDS-4, VXA-2 provides users with more than twice the data rate and four times the storage capacity of DDS-4.

"This agreement represents an exciting opportunity for Exabyte to dramatically increase its sales volume," said Tom Ward, president and CEO of Exabyte. "IBM's xSeries servers are top-sellers in Intel processor-based servers, and this agreement makes it easy for IBM's customers to select our VXA-2 tape drives when they buy servers."

"This latest agreement between IBM and Exabyte is further evidence that VXA is an excellent alternative to DDS," said Bob Abraham, president of Freeman Reports. "xSeries customers who face the challenges of rapidly growing data storage requirements and who are not convinced of the ability of DDS technology to keep pace can be confident in their selection of VXA-2 tape drives from IBM."

VXA-2 will be available as an option in xSeries server models including x205, x225, x235, x255, x305, x335, and x345. For more information about IBM eServer xSeries, visit www.pc.ibm.com/us/eserver/xseries.

IBM also offers Exabyte VXA-2 drives as an internal and external optional storage solutions in its IBM eServer pSeries systems. The VXA-2 tape drive is designed to deliver a native capacity of up to 80 GB and a compressed capacity of up to 160 GB at a sustained transfer rate of up to 12 MB/sec, while maintaining full read and write compatibility with the first generation VXA-1 tape drive. The drive's SCSI Ultra 2 Low Voltage Differential (LVD) interface, the standard in peripheral connection, attaches to either LVD or single-ended SCSI host interfaces. In addition, several lengths of VXA tape cartridges and a cleaning cartridge are also available immediately, allowing customers to select a cartridge native capacity from 20GB to 80GB. This cartridge capacity range allows users to select a cartridge to meet their exact storage needs for better control over their cost of ownership.

About VXA Tape Technology

First introduced in 1999, Exabyte's award-winning VXA technology is the most significant advancement in tape storage technology in the last decade. VXA tape products offer a unique combination of reliability, performance and value. VXA tape drives feature higher capacity and faster data transfer rates at the same price point as DDS. Moreover, VXA offers superior reliability, based on an innovative read/write architecture with a highly reliable "packet" format, designed for 100 percent data restore. Also, the published VXA roadmap currently extends through four successive generations, ensuring long-term protection of users' investments in drives and media.

About Exabyte Corporation

Exabyte Corporation provides innovative tape storage solutions to customers whose top buying criteria is value -- maximum performance, quality and ease-of-use at a price they can afford. Exabyte is a recognized value-leader in tape storage and automation solutions for workstations, midrange servers and enterprise storage networks, and has been an industry innovator since 1987. Exabyte's high-performance Mammoth-2 (M2T) tape drives for the mid-range market have a strong performance-price ratio, Exabyte's VXA-2 tape drive technology provides DDS users with significantly higher capacity and performance at a similar price point, and Exabyte's storage automation products are rugged, reliable automation solutions for users of VXAtape, MammothTape and LTO (Ultrium). Exabyte has a worldwide network of OEMs, distributors and resellers that share Exabyte's commitment to value and customer service, including partners such as IBM, Compaq, Fujitsu Siemens Computers, Bull, Toshiba, Apple Computer, Tech Data, Digital Storage Inc, Ingram Micro and Arrow Electronics.

For additional information, call 800-EXABYTE or visit www.exabyte.com. For investor relations inquiries, e-mail investor@exabyte.com.