Emulex CEO Outlines Key Focus Areas for Growth

McCluney Unveils Strategy to Leverage Recent Acquisitions to Drive Diversification and Take Advantage of a $2.7 Billion Market Opportunity


COSTA MESA, Calif., Oct. 26, 2006 (PRIMEZONE) -- Emulex Corporation (NYSE:ELX) today unveiled key focus areas for the Company to take advantage of its $2.7 billion market opportunity. Building on the recent close of its Sierra Logic acquisition, which marked the latest in a series of acquisitions and product line expansions, Emulex's growth and diversification strategy will be driven through three market focused product lines - Host Server Products, Embedded Storage Products and Intelligent Networking Products.

With a goal of delivering products that intelligently connect storage, servers and networks, Emulex benefits from synergies created by leveraging its corporate-wide technology, marketing and sales organizations. To more effectively communicate this strategy and drive broad visibility for its brand within an expanding customer base, Emulex launched today a new corporate re-positioning initiative.

As part of this initiative, Emulex introduced a redesigned Web site, a newly stylized logo, and supporting materials to drive increased visibility for the Emulex brand across the company's various markets and customer base.

During the company's Fiscal Q1 2007 earnings call today, Emulex President and Chief Executive Officer, Jim McCluney outlines how the company's diversification strategy uniquely positions Emulex to take advantage of the business drivers shaping the server and storage industries, including consolidation, virtualization and convergence of protocols and networks.

"Focusing on three core product lines enables Emulex to achieve its goal of providing unmatched products and services to our customers, and to grow our business into new markets," said McCluney. "It is critical that we continue to build upon our strong brand, and leverage it across all product lines and within emerging markets."

"Data center technology is evolving and companies need to be connected to their customers and focused on their needs in order to stay relevant. Emulex's strategy allows them to accomplish this," said Steve Duplessie, founder and senior analyst, Enterprise Strategy Group. "It seems obvious that a company such as Emulex needs to continue to position itself as the data center connectivity and intelligence provider, no matter what changes in protocols or advancements in virtualization occur - wherever they occur. Having touch points throughout the entire core infrastructure will provide better integration of intelligence, which will ultimately lead to creating real operating efficiencies, and that's what IT is all about these days."

Emulex Products Offer Proven Performance and Are Specialized to Meet the Needs of the Customer

Host Server Products

Emulex's Host Server Product portfolio includes the company's flagship Fibre Channel HBA products and its blade server mezzanine cards. The core portfolio also includes products sold into embedded server applications. Today, more than 90 percent of the Fortune 100 trust their storage needs to Emulex-enabled Fibre Channel-based solutions.

Embedded Storage Products

Emulex's Embedded Storage Portfolio includes the newly-acquired Sierra Logic products, making Emulex the most complete provider of integrated, end-to-end embedded storage networking products in the industry. Products include the market-leading InSpeed and FibreSpy embedded switches; I/O controllers and I/O processors; and embedded bridges and routers.

Intelligent Network Products

Emulex's Intelligent Network Products portfolio offers customers reliable, multi-protocol, storage networking platforms that enable Fibre Channel-based SANs and devices to be connected to Ethernet networks, and intelligent storage processors that enable storage virtualization. The company's next generation portfolio addresses the needs of the 10Gb/s Ethernet data center networking market, targeting applications such as iSCSI, high-performance server clustering, and accelerating Ethernet-based network traffic.

Emulex has centralized technology and development organizations, enabling intellectual property to be leveraged across the company, speeding time-to-market and development costs. In addition, Emulex also leverages centralized marketing and sales functions to maximize corporate branding efforts, and access and service to customers.

For more information, visit www.emulex.com.

About Emulex

Emulex Corporation creates enterprise-class products that intelligently connect storage, servers and networks. The world's leading server and storage providers rely on Emulex award-winning HBAs, intelligent storage platforms and embedded storage products, including switches, bridges, routers and I/O controllers, to build reliable, scalable and high performance storage and server solutions. Emulex is listed on the New York Stock Exchange (NYSE:ELX) and corporate headquarters are located in Costa Mesa, California. News releases and other information about Emulex Corporation are available at http://www.emulex.com.

The Emulex Corporation logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1744

Emulex Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; fluctuation in the growth of Fibre Channel and IP markets; changes in economic conditions or changes in end-user demand for technology solutions; fluctuations or delays in customer orders; the highly competitive nature of the markets for Emulex's products; Emulex's ability to gain market acceptance for its products; the company's ability to attract and retain skilled personnel; the company's reliance on third-party suppliers. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in the company's filings with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.



            

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