San Jose, CA -- August 26, 1992 -- Insite Peripherals announced that it has
closed multimillion dollar stocking distribution agreements for its
3.5-inch, 21-megabyte Floptical floppy disk drive with over twenty major
distributors around the world. Volume shipments have already begun.

"These agreements signal international support for Floptical technology,"
said Chuck Moran, vice president of sales and marketing for Insite. "They
are another major milestone toward acceptance of Floptical technology as
the industry standard for very high capacity floppy disk drive storage."

These distributors have been authorized by Insite to market its products in
the following regions:

NORTH AMERICA: The below join Insite's first U.S. distributor, Arrow
Electronics, Melville, NY: Mexico: Asiste M.R., Colonia Cosdesa, CP;
Canada: Computer Brokers of Canada, Toronto; United States: Bell
Microproducts, Milpitas, California; and Technology Distribution Inc.,
Canton, Massachussetts.

EUROPE: France: HIT Technologies, Asnieres; Germany: Dino Computer, Gmbh.,
Gilching; Greece: Microhellas (Micropolis Computers), Athens; Italy:
Assi-Tech Computers, Crema; The Netherlands: Sonetech Nederland bv,
Nuenen; Scandinavia: Dansk Periferi Teknika, Soborg, Denmark; Innovation
Data, Spanga, Sweden; Nor Periferi, Bekkestua, Norway; Switzerland:
Micro-System Technik AG, Zurich; United Kingdom: Ambar Systems Ltd.,
Aylesbury, Bucks; and Ideal Hardware Ltd., Surrey.

REST OF WORLD: Australia/New Zealand: Westan Pty, Rowville, Australia; Gulf
States: Arabian Technology International, Manama, Bahrain; Israel:
Militram Futuristic Technology Ltd., Herzelia; Singapore: O.R. Computer
Systems, Singapore; South Africa: Gerber Goldschmidt Group, La Jolla,
California; and Taiwan: Litz Technologies, Taipei.

The 3.5-inch 21MB Floptical disk drive is seen as a superior solution for
need for low cost, removable, very high-capacity data storage by the vast
majority of systems users. The Floptical drive's read/write compatibility
with standard capacity 720KB and 1.44MB diskettes, plus the clear
migration path to significantly higher capacities assures this new
technology's place as an affordable mass storage alternative.

FLOPTICAL TECHNOLOGY BACKGROUND INFORMATION

The 3.5-inch Floptical disk drive features 21MB of formatted capacity (25MB
unformatted), one inch high form factor and single +5 volt power
requirements. The Floptical disk drive uses standard 3.5-inch diskettes
and variable mode dual heads which make it the first and only very high
capacity 3.5-inch flexible drive able to read and write standard lower
capacity 720KB and 1.44MB 3.5-inch diskettes. The Floptical's very high
capacity is achieved by combining patented optical servo track positioning
and magnetic recording technologies. Products based on Floptical
technology available from Insite OEMs include disk drives, media, host
adapter and subsystem products.

FLOPTICAL TECHNOLOGY SUPPORTERS

Announced support of Insite's Floptical technology includes Commodore,
Westchester, PA; Digital Micronics, Inc., Carlsbad, Calif.; GrassRoots,
Inc., Lenexa, Kansas; PLI (Peripheral Land, Inc.), Fremont, Calif.; Procom
Technology, Costa Mesa, Calif.; and MASS Microsystems, Sunnyvale, Calif.
All market to the IBM PC, Amiga and/or Macintosh markets.

The Micro Standards Committee of the Microcomputer Manager's Association
(MMA), has nominated the Floptical disk drive as the industry standard for
very high capacity (VHC) floppy disk drives. The recommendation came in a
white paper based on a competitive evaluation among available high
capacity drives.

Insite Peripherals, a venture-funded company with over $20 million in
equity financing to date, was founded in early 1987 to exploit the
emerging market for very high capacity flexible disk drive products. The
company is a founding member of the Floptical Technology Association,
along with Iomega Corp., 3M, Maxell, MKE, Adaptec, Future Domain and
Rancho Technology. Company headquarters are at 4433 Fortran Drive, San
Jose CA. 95134-2302

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