Austin, Texas, March 22, 2000 – In a move that boosts its capabilities in enterprise storage area networks (SANs), Crossroads Systems, Inc., a leading developer and manufacturer of storage routers for use in fibre channel SANs, announced it has completed the acquisition of Polaris Communications.

On Feb. 3, 2000, Crossroads announced the execution of a definitive agreement to acquire Polaris Communications, a privately held designer, developer and marketer of S/390 mainframe communication interfaces and systems. This acquisition adds another set of protocols to Crossroads' storage routing capabilities and will further Crossroads' commitment to interoperability between the many S/390 components and open-systems SANs. This acquisition will enable Crossroads to bring its open system SAN expertise to larger enterprise systems where more than 70 percent of the world's data is stored.

Polaris Communications' technologies deliver increased connectivity and bandwidth options to enterprise data centers, focusing on high-speed connections between open systems and mainframes. Crossroads will utilize Polaris Communications' expertise and experience to deliver high-speed data connections between Fibre Channel SANs and ESCON and future FICON technologies in enterprise data center environments.

In connection with the acquisition, Crossroads will issue 450,000 shares of its common stock for all of the outstanding stock and options of Polaris Communications. The transaction will be accounted for as a purchase.

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