Exabyte Corporation (Exabyte), incorporated in June 1985, offers tape storage, media and automation solutions for workstations, midrange servers and enterprise storage networks. The Company's tape drive products are based on its VXA and MammothTape technologies and its automation products are primarily based upon VXA, and LTO (Ultrium) technologies Exabyte has a worldwide network of original equipment manufacturers (OEMs), distributors and resellers that share its commitment to value and customer service, including partners, such as IBM, Fujitsu Siemens Computers, Apple Computer, Tech Data, Imation, Ingram Micro and CDW. The Company also offers a full range of warranty and post-warranty repair services for its tape drive, library and media products. Exabyte delivers these services pursuant to agreements with Teleplan Service Logistics, Inc., which is the exclusive provider of its repair services and Anacomp, Inc., which provides the Company's on-site customer service. Tape Drives Exabyte's Packet Technology enables VXA Packet drives, autoloaders, and tapes to read and write data in small, digital packets similar to the Internet, providing reliable restore integrity, higher transfer speeds and scalable tape capacities. VXA-320 Packet drives and autoloaders deliver transfer speeds up to 86GB (compressed11*) per hour, allowing network administrators to backup 320GB (compressed22*) of data (equal to one VXA-320 tape) in less than four hours. With PerfectWrite and 4-level Reed-Solomon Error Correction, VXA products have highly reliable restore capabilities. LTO (Ultrium), the latest technology, offered by Hewlett-Packard, IBM and Quantum, is a high-performance tape technology offering versatility, reliability and performance. The Company's patented ExaBotics make its automation products featuring LTO technology superior in engineering, quality and reliability. Exabyte was among the first manufacturers to offer automation featuring first and second generation LTO tape drives and the first to offer Fibre Channel in mid-range drives and libraries. The Company also integrated third generation LTO tape drives into Exabyte's automation products in 2005. Its automation products featuring LTO technology offer the simplicity of plug-and-play capabilities and remote management. Exabyte has also sold M2 tape drives based on MammothTape technology platforms, which are integrated systems encompassing both a helical-scan tape drive and advanced metal evaporated (AME) media. All aspects of the technology work together to optimize recording performance and to ensure the integrity of vital data. The Company has discontinued the manufacture and sale of Mammoth related drive and automation products in 2005. Sales of the Company's tape drives, including end-of-life products, represented 23% of net revenues for the year ended December 31 2005. The Company's tape drives face competition from tape drive products manufactured by Quantum, Hewlett Packard, Sony and the LTO Consortium. Automation and Exabotics The Company offers and supports automated tape drive products. These automation products incorporate one or more tape drives and multiple media cartridges to provide much higher data capacities than using a single drive and, with more than one drive, higher data transfer rates. Exabyte offers automation products incorporating VXA and LTO (Ultrium) tape drives. Exabyte's automation products are designed to be scalable, allowing the Company to develop different sized autoloaders based on the same model, with the ability for expansion. This capability enables the Company's designs to accommodate increases in customers' data storage needs and allows its end users to protect their automation investment. ExaBotics is the Company's patented robotics, based on its 20-year history of introducing new products to the industry. Exabyte engineers specify conservative electronics and ultra-reliable mechanical components that undergo intensive testing to ensure data security, accessibility and retrievability. Automation systems are desi

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