Alacritech, Microsoft and Broadcom Announce Cross-Licensing Agreements to Advance Scalable Networking Technologies

San Jose, Calif. — July 13, 2005 — Alacritech® Inc., Microsoft Corporation (Nasdaq: MSFT) and Broadcom Corporation (Nasdaq: BRCM) today announced that they have entered into agreements that settle all outstanding disputes between Alacritech and Microsoft as well as provide Microsoft and Broadcom access to Alacritech’s patent portfolio relating to scalable networking. Alacritech’s patent cross-licenses with Microsoft and Broadcom provide Alacritech with access to certain Microsoft and Broadcom networking patents. Alacritech’s agreements with Microsoft and Broadcom include fees in undisclosed amounts paid to Alacritech. Collectively the agreements enable the three companies to work together to further expand the range of customer solutions available for scalable networked systems.

“Alacritech’s SLIC Technology architecture is a key component of next-generation scalable networking, ” said Larry Boucher, president and CEO, Alacritech Inc. “Alacritech is pleased to be working with industry leaders Microsoft and Broadcom in this important field. Today’s agreement will help facilitate the widespread adoption of systems technology that is a key enabler of efficient data delivery.”

“Customers are looking for high performance, seamless and secure networking, and Microsoft’s networking initiatives will advance the functionality and scalability of the Windows platform,” said Jawad Khaki, vice president, Windows Networking and Devices, Microsoft. “Today’s agreement ensures Microsoft customers and partners will be able to realize improved application, server and network performance.”

“Broadcom® NetXtreme II™ technology, in conjunction with Windows Server 2003, codename ‘TCP Chimney’, will promote the adoption of TOE, iSCSI and RDMA in all x86 based enterprise class servers,” said Thomas Lagatta, senior vice president and general manager, Enterprise Computing Group, Broadcom. “ We’re pleased to be working with Alacritech and Microsoft to enable significantly better performance in Windows-based servers and to provide the critical ability to address the convergence of data and storage through I/O consolidation.”

About Alacritech SLIC Technology®

Alacritech’s SLIC Technology is a Dynamic TCP Offload™ architecture that is the first scalable architecture to offload network protocol processing including TCP/IP, RDMA and iSCSI from host software to silicon. By efficiently eliminating system and network bottlenecks and maximizing data movement through Ethernet-based networks, SLIC Technology significantly increases system, application and network performance and enables scalable networking to 10 Gigabit and beyond. All Alacritech Accelerator products are based on SLIC Technology and include Gigabit Ethernet TNIC products, iSCSI controller products and IPP ASICs. All Alacritech products offer industry-standard failover and link aggregation.

About Broadcom

Broadcom Corporation is a global leader in wired and wireless broadband communications semiconductors. Its products enable the convergence of high-speed data, high definition video, voice and audio at home, in the office and on the go. Broadcom provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with the industry’s broadest portfolio of state-of-the-art system-on-a-chip and software solutions. These solutions support Broadcom’s core mission: Connecting everything®. Broadcom is one of the world’s largest fabless semiconductor companies, with annual revenue of more than $2 billion. The company is headquartered in Irvine, Calif., with offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at 1-949-450-8700 or at www.broadcom.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

About Alacritech®, Inc.

Alacritech Inc. is the world’s leading supplier of standards-based scalable networking solutions and technology that enable the highest performance and efficiency in networked systems. As the first to envision a network protocol processing architecture that enables systems to scale to address ever increasing data and network speeds, Alacritech developed and patented the SLIC Technology® architecture. Alacritech’s complete line of Accelerators, based on this architecture, optimize data delivery in servers, network-attached storage and iSCSI storage devices. SLIC Technology, the basis of industry-accepted TOE solutions, ships in storage and server products worldwide. Alacritech is a privately held company based in San Jose, California. For more information about Alacritech and its products, please visit the company’s Web site at www.alacritech.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our respective current expectations, estimates and projections about our industry and business, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the actual results of Alacritech, Broadcom or Microsoft to differ materially and adversely from those expressed in any forward-looking statement.

For each of Broadcom and Microsoft, its Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect its business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. Alacritech, Broadcom and Microsoft undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo and NetXtreme II™ are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.

Alacritech, the Alacritech logo, SLIC Technology, SLIC Technology logo, Accelerating Data Delivery and Dynamic TCP Offload are trademarks and/or registered trademarks of Alacritech, Inc. in the United States.

Any other product and company names herein may be trademarks of their registered owners.