JNI Settles Shareholder Lawsuit

SAN DIEGO -- JNI® Corporation (Nasdaq: JNIC - News), a leading provider of enterprise storage connectivity products, today announced that as part of a settlement reached with the plaintiff in the class action suit that had sought to enjoin JNI's pending merger with Applied Micro Circuits Corporation (Nasdaq: AMCC - News), JNI has agreed to publicly highlight to its stockholders the fact that the opinion rendered by Bear, Stearns & Co., Inc. on August 28, 2003 with respect to the fairness of the consideration to be paid to JNI stockholders in the merger with AMCC, from a financial point of view, spoke only as of the date rendered, and therefore does not take into account JNI's results of operations for the period ended September 30, 2003 which were announced earlier this week.

The merger with AMCC remains subject to various conditions and approval by the stockholders of JNI. JNI has scheduled a special stockholder meeting on October 28, 2003 to obtain stockholder approval of the merger.

JNI Corp.