Quellan Announces Strategic Alliance with Gore

World Leader in Advanced Electronic Signal Transmission and Composites Makes Strategic Investment

SANTA CLARA, CA -- September 27, 2007-- Quellan Incorporated, a leader in Analog Signal Processing and RF Noise Cancellation low power ICs, today announced a Strategic Alliance with W.L. Gore & Associates (Gore), a global leader in electronic signal transmission. Under the terms of the agreement, the Companies will collaborate on high performance data center interconnects that reduce power, extend reach and increase speed. Gore has also made an equity investment in Quellan.

With the ever increasing bandwidth needs, speed, and size of today’s "Mega Data Centers", cabling is becoming a significant obstacle to cooling and lower power consumption. By integrating Quellan’s Q:ACTIVE® semiconductors with Gore’s advanced cabling, Gore’s new "Active Cables" will deliver dramatically lighter, thinner and further reaching cabling to Data Centers.

"Cable weight and compute density have become exponentially critical in next generation Data Centers," said Joel Goergen, Chief Scientist at Force10 Networks. "Power consumption is a paramount issue and the industry is devoid of low energy, small form factor solutions for this escalating problem – ‘active’ cabling is an innovative answer to this massive problem."

"We are excited to invest in Quellan," said Eric Gaver, business unit leader for Gore’s commercial high data rate cabling products. "Through our collaboration with Quellan, we will continue to deliver an innovative family of products that offer a low risk approach for minimizing cable bundle size and power consumption, while bridging the reach gap for massively clustered HPC systems for generations to come."

"While data center power efficiency has been improved dramatically with mulitcore processing and open standards, the cabling that connects tens of thousands of servers has not kept pace and current cable technology will soon overwhelm the space available," said Tony Stelliga, Quellan Chairman and CEO. "This alliance with Gore – one of the industry's most respected providers of high performance cabling – is to deliver 'Active Cabling' where our embedded silicon enables ultra thin, lightweight, low power interconnects that remove this interconnect bottleneck."

About Quellan

Quellan specializes in analog components that improve the performance and functionality of electronic equipment by removing channel impairments and noise. Quellan serves the Enterprise, Telecom, Broadcast, Automotive and Consumer Electronics markets. Privately held, Quellan’s investors include Menlo Ventures, Cordova Ventures, Yamacraw Seed Capital Fund, Samsung Ventures, Glynn Capital Management LLC, Venture Tech Alliance, JAFCO Ventures, Harbinger Capital and W.L. Gore & Associates. For more information, please contact Quellan at 408-774-0084 or www.quellan.com.

About Gore & Associates

Founded in 1958, W. L. Gore & Associates, Inc. has parlayed its unique technical capabilities into hundreds of diverse products and is world-renowned for its expertise in configuring the remarkably versatile polymer PTFE. This has resulted in numerous products for electronic signal transmission; fabric laminates; medical implants; as well as membrane, filtration, sealant, and fiber technologies for diverse industries. With nearly $2 billion in sales, the company is headquartered in Delaware in the US and employs approximately 7,000 associates at 45 facilities throughout the world. Gore is one of only five companies included in every selection of Fortune Magazine's "100 Best Companies to Work For" since the list began in 1984. Gore has also been cited among the "Best Places to Work" in Germany, Italy and Scotland. For further information, please visit www.gore.com.

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