10/25/95 News Release Adaptec Secures Wafer Supply Boost New agreement with TSMC bolsters existing ties through 2001 Milpitas, Calif, - October 25, 1995 - Adaptec (NASDAQ:ADPT), announced an agreement today with Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) that will, in the words of Adaptec corporate vice-president of operations Sam Kazarian, "ensure availability of a significant part of our wafer capacity for both current and future technologies." The contract, which runs through 2001, provides Adaptec with a guarantee of increased capacity for its submicron wafers in return for advance payment. The company has committed up to $60 million to TSMC over the next three quarters. This agreement is in addition to an earlier contract for guaranteed supply and technology signed in 1993. "Adaptec and TSMC have had a strong and synergistic relationship for years," according to Kazarian. "Our goal at Adaptec is to be a high quality, uninterrupted source of supply for our customers; this helps us achieve that goal." TSMC is the world's largest and fastest-growing dedicated semiconductor foundry, manufacturing more than one million six-inch wafers per year in 1995. The company offers CMOS fabrication processes that focus on advanced logic, mixed signal and a wide array of memory processes. TSMC fabs are located in Hsin Chu, Taiwan, and the company has subsidiaries in the United States and Europe. Adaptec, Inc. (NASDAQ:ADPT) designs, manufactures, and markets IOwareŽ solutions to eliminate performance bottlenecks between micro-computers, networks, and peripherals. Solutions range from simple connectivity products for single-user and small office desktops, to intelligent subsystem, high performance SCSI, RAID, and ATM products for enterprise-wide computing and networked environments. Adaptec I/O solutions are incorporated into the products of virtually all the major computer and peripheral manufacturers around the world. Founded in 1981, Adaptec is a recognized leader in high performance I/O technology. Adaptec currently employs approximately 1,900 people, and with its global distribution network, serves customers worldwide. Adaptec's World Wide Web home page address is http://www.adaptec.com. Adaptec and IOware are trademarks of Adaptec, Inc., which may be registered in some jurisdictions.