Adaptec Notes a Reduction in Its First Quarter 2007 Tax Provision

Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, today reported a change in the tax provision for its first quarter of fiscal 2007 financial results which it reported on August 1, 2006.

The statement of operations and reconciliation of GAAP to non-GAAP operating results as previously reported contained a provision for income taxes of $1.7 million for the first quarter of fiscal 2007. The Company has subsequently determined that the tax provision for the quarter should instead be a provision of $0.9 million, for a reduction of $0.8 million.

As a result of this adjustment to the tax provision, the loss from continuing operations, computed on a generally accepted accounting principles (GAAP) basis, for the first quarter of fiscal 2007 is now ($24.8) million, as compared to the previously reported loss from continuing operations of ($25.6) million and the net loss for the first fiscal quarter of fiscal 2007 is now ($23.3) million as compared to previously reported net loss of ($24.1) million. There is no impact to the amounts reported for discontinued operations.

The net loss on a GAAP basis per share from continuing operations for the first quarter of fiscal 2007, for both basic and diluted EPS, is now ($0.21), as compared to the previously reported net loss per share from continuing operations of ($0.22). The net loss per share for the first quarter of fiscal 2007, for both basic and diluted EPS, is now ($0.20), as compared to the previously reported net loss per share of ($0.21).

The tax provision presented as part of the non-GAAP Statement of Operations for the first quarter of fiscal 2007 is now $1.1 million, as compared to the previously reported provision of $1.3 million. The non-GAAP net loss from continuing operations is now ($3.3) million as compared to the reported net loss of ($3.5) million. The non-GAAP net loss is now ($3.0) million, as compared to the reported net loss of ($3.2) million. Other than the change in the adjustment to the provision for taxes as noted above, the reconciliations of GAAP to non-GAAP operating results have not been changed from those set forth in the prior release.

The Company has also reflected reclassifications in the cash flow data between continuing operations and discontinued operations for the first quarter of fiscal 2006, ended June 30, 2005 and the fourth quarter of fiscal 2006, ended March 31, 2006. There is no impact to the net cash used for operating activities for these periods.

The attached financial statements reflect the changes described above.

About Adaptec

Adaptec, Inc. (NASDAQ: ADPT) provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. Adaptec's software and hardware-based solutions are delivered through leading Original Equipment Manufacturers (OEMs) and channel partners to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses, and consumers worldwide. More information is available at www.adaptec.com .