AT&T AND ANCOR COMMUNICATIONS BUILD MULTIMEDIA/VIDEOCONFERENCING NETWORK
USING FIBRE CHANNEL TECHNOLOGY

ACES PROGRAM USES GIGABIT NETWORK TO SLASH ADVERTISING PRODUCTION TIME BY
OVER 30%

Minneapolis, MN -- August 7, 1995 -- Ancor Communications today announced
that it has received an order from AT&T Consumer Communications Services
for a Fibre Channel network that will provide full-motion, NTSC quality
video and video conferencing capabilities for desktop PCs. The order,
which is valued at over $400,000 and specifies Ancor's FCS 1062 Gigabit
Fibre Channel Switch and recently-announced PCI adapters, represents the
first large-scale production implementation of a high-performance LAN for
multimedia applications.

Chris Casserly of AT&T Marketing Communications said, "We can gain a
tremendous competitive advantage by reducing the time it takes to create,
review and approve print, radio and television advertising programs.
Currently, the production cycle from concept to channel is about 60 days,
a large component which is the logistics of moving people and material
around. We designed the Agency Communication Exchange System (ACES) to
reduce our production time to 40 days or less by using advanced multimedia
computing and telecommunications technology. ACES will also reduce many of
the costs associated with production including travel and overnight
mail."

Paul Gausman, Multimedia/LAN Specialist for AT&T, said, "We reviewed the
alternatives and found that Fibre Channel was the only technology capable
of meeting the current and future requirements of the ACES project. ACES
requires an industry standard high-performance digital fabric that
combines conventional client-server functions with high-quality video
conferencing and services."

The ACES solution will use Ancor's FCS 1062 Gigabit Fibre Channel Switches
located in several buildings on the AT&T headquarters campus in Basking
Ridge, NJ to connect a series of AT&T Globalyst desktop personal
computers. Each of the desktop systems will be equipped with video
conferencing software and hardware, and will use Ancor's FCS 1062 PCI
adapter to connect to the Fibre Channel fabric. Ancor will also supply a
modular information server to manage video clips and provide connectivity
to 4 remote ad agencies in Boston and New York via ISDN wide-area
services.

The system will allow AT&T to perform realtime transmissions of
uncompressed high-resolution (NTSC/HDTV/SMTE) studio-quality video clips
at 30 frames/second (FPS) through the Fibre Channel fabric to the client
PCs. The fabric will also allow concurrent transmission of video
conferencing images, computer-generated images, whiteboards and other
TCP/IP application sharing. Through support of the ITU-T, H.320 (up to
702x576 pixels/30 FPS) and T.120 standards, the fabric also provides for
wide-area connectivity through ISDN (BRI, 3BRI and PRI). Future
applications for the system includes remote access for telecommuting,
global connectivity to overseas agencies, video broadcast on the LAN,
multimedia database interaction, conferencing with other internal
organizations, and broadcast quality editing on the LAN.

Fibre Channel is a standard networking technology defined by the American
National Standards Institute (ANSI) featuring guaranteed delivery and
transfer rates up to 4 Gbps per channel and unlimited aggregate bandwidth.
The technology is supported by nearly 100 member companies of the Fibre
Channel Association.

Ancor Communications Incorporated (Nasdaq Small-Cap Market: ANCR) is the
leading provider of networking products based on Fibre Channel, an
ANSI-standard communications technology used to build the world's fastest
local area networks. The Company's products include Fibre Channel
switches, adapters and application-specific integrated circuits (ASICs).
Ancor was founded in 1986 and is headquartered in Minnetonka, Minnesota.
 
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