MOUNTAIN

COMPANY BACKGROUND

Mountain Network Solutions Inc., a privately held company, was founded
in aquired by Nakanichi Corporation of Tokyo, Japan, which made
Mountain part of a three company group. The two other two companies in
the group are Caliper, which is a 1/4-inch tape supplier to the OEM
market, and Ocean, which is in the office automation market.

In December 1990, Nakamichi sold the Media Technology Division of
Mountain to of Nakamichi), and other private investors

The company has approximately 350 employees. Mountain Network Solutions
Inc. has no subsidiaries.

The company's primary focus has been in developing mini cartridge tape
drive technology.

The Minicartridge division of Mountain was established as a wholly-
owned subsidiary of NPC in July 1991. The new company, Summit Memory
Systems Inc., will design, manufacture, and market minicartridge tape
backup products for OEM, private label, and distribution customers
worldwide, including Mountain.


CORPORATE CHARTER :
To be a leading worldwide supplier of tape backup subsystems and data
management software that advance interoperability and data integrity
for the network computing industry.


PRODUCTS

MODEL            RELEASED   CAPACITY   TRN RT          FF         DRIVE

FileSafe 8500     Q3'90                               3.5"       DC2000
 - 1st tape drive to incorporate the integrated device electronics
   embedded-AT interface

FileSafe 4000                140MB     2.2MB/min  5.25"HH/3.5"   DC2000
                             240MB-DC

FileSafe 8000Plus            304MB     6MB/min        3.5"       DC2000
 - Won PC Magazine Editors Choice Award & CRN Preferred Peripheral
   Award in 1989

FileSafe 7000                60MB-1 drv.                         DC600
                       1.05GB-clustered

FileSafe 7250               250MB

                         1.05MB - dual

8mm
FileSafe 2100               2.2GB      246KB/s

FileSafe 1200               1.3GB                                   4mm
         1200d              2.6GB - dual
 - Can get upto 4 drives daisy-chained together, producing 5.2GB

SOFTWARE :

FileSafe is the standard tape operating software used on all Mountain
tape storage platforms.

FileTalk is an advanced data management software application that
provides true distributed processing capabilities throughout LANs,
extending the functionality of the tape systems in network
applications.

Mountain supports Novell's Netware; SCO's versions of XENIX & UNIX; and
IBM's AIX operating system.


MANUFACTURING

Mountain has three manufacturing sites :

Scotts Valley, California - Manufacturing of all products.
Seoul, Korea              - Manufacturing of all products.
San Diego, California     - Advanced software research and development.

MARKETING

Mountain has five sales offices in North America, and one in Europe.

OEM Agreements - DEC : September 1990, agreement for DEC to sell and
                       support
                       Mountain's FileSafe 2100 D 8mm SCSI tape backup
                       system.
               - Toshiba
               - Unisys
               - Tallgrass


Distributors  - Ingram Micro, Merisel and Tech Data

Resellers     - Businessland, Sears Business Centres and NYNEX
 - Has grown its retail dealer outlets to more than 3,000 nationwide.


Support - Free Technical Support, Customer Support and Sales Support
          are available as long as you need it.

Warranty - They have a Ready Replacement Warranty Program

Image - Stresses the need for software, hardware is only half of your
        requirement. and... "Unlike the rest, the FileSafe 1200 is a
        complete hardware and software solution that helps you manage
        your data. Not just back it up".


PERSONNEL

President and CEO           - James W. Sedin  - for more than 10 years.
Exec VP & CEO, Peripheral Prdts Div -  Whitney G. Lynn - Worked for
  Tecmar & Wtk
VP Marketing                - Tom Toperczer
VP North American Sales     - Gary Franza
VP Software Development     - Bob Brown
VP OEM Products             - Jay D.Baker
VP Hardware Engineering     - A.Bruce Manildi

VP & Gen mgr of Media Tech Div - Kenneth V.Burke - VP of Peripheral
                                 products div., & manu mgmt at Verbatim
                                 Corporation.

FINANCIAL

Principle investors :  Nakamichi Corporation   - 87.9%
                       Nissho Iwai Corporation - 12.1%

Financial Year begins 1st August.

                    1988        1989         1990         1991
Sales Revenue       $32M        $54M         $66M         $74M
                                 (Projected)