San Jose, California — January 30, 2006

Alacritech® Inc., the innovator of Dynamic TCP Offload™ technology that enables scalable networked systems, today announced the grand opening of its new corporate headquarters located at 1995 North First Street at the corner of Brokaw Road in San Jose, California. In celebration of the grand opening of Alacritech’s new corporate headquarters, San Jose Mayor Ron Gonzales and City Councilmember Chuck Reed will join in an Official Ribbon Cutting Ceremony at the company’s new facility today at 2:00 p.m. which will be followed by an open house showcasing the company’s history of technical innovation. Alacritech’s new facility is located in an area known as the “Innovation Triangle” for its high concentration of technology companies, and is a few blocks from its previous location on Gish Road.

“Alacritech is enjoying growth spurred by the industry’s need for innovative new technologies like iSCSI and scalable networking technology that enable networked systems to efficiently address growing data demands, ” said Larry Boucher, president & CEO, Alacritech, Inc. “Alacritech holds a number of patents and develops and ships a broad line of acceleration solutions for systems networking and networked storage applications. Our new expanded facility will enable us to continue to innovate and grow to meet worldwide market demands.”

“San Jose is committed to supporting the success of companies like Alacritech, which has become a valuable member of our city’s remarkable concentration of technology, innovation, and creativity, ” said San Jose Mayor Ron Gonzales. “The San Jose area already leads the nation in patent generation, and the growth of Alacritech and other technical innovators ensures that we will continue to set the pace for advances in the global computing industry. ”

Alacritech’s new headquarters at 1995 North First Street is conveniently located at the corner of North First Street and Brokaw Road near prime commute arteries and mass transportation. The new offices have direct access to the 101 freeway, and are minutes from Norman Y. Mineta San Jose International Airport. The newly renovated building is owned by Barry Turkus of NAI BT Commercial. Alacritech’s real estate advisors Aaron Fritz and Craig Petersen of NAI BT Commercial were instrumental in the successful search for an expanded facility, and in structuring the lease transaction. OPI Commercial Builders managed the tenant improvements for Alacritech under the supervision of Dave Johnson and Evan Quinn.