CHILI PEPPER SOFTWARE FORMS STRATEGIC ALLIANCE WITH 3M TO PROMOTE
HIERARCHICAL STORAGE MANAGEMENT ON THE DESKTOP

August 23, 1994, Atlanta, Georgia - Chili Pepper Software, Inc. has formed
a strategic alliance with 3M of St. Paul to develop (HSM) hierarchical
storage management software for quarter-inch data cartridge drives and
media.

The two companies hope the development will result in PC software that
could redefine the way quarter-inch large cartridge and mini-cartridge
drives are used. The new product would make it possible for desktop tape
drives to provide near-line storage as well as data backup.

Chili Pepper Software and 3M hope to announce availability of the new
software by the end of 1994. Terms of the relationship were not
disclosed.

"Our alliance with 3M is a validation of what we believe will become
breakthrough software technology," said Richard Onyon, president, Chili
Pepper Software. "For users of tape backup devices, HSM on the desktop
will provide tremendous storage capacity for just pennies per megabyte.
Their hard drive will seem to go on forever because the quarter-inch data
cartridge will be staging the users' inactive data, very much the way
large computer systems are managed."

"3M is convinced HSM will make the tape drive an even more useful,
permanent part of the desktop computer system." said Jeff Morgan, Business
Development Manager for software applications management, 3M Data Storage
Tape Technology Division. "HSM is a great solution to the problem of hard
drive capacity, in a world where demands for disk space continue to
mushroom," Morgan said. "And because tape is so cost effective, HSM will
further reduce the cost of storage for many businesses."

HSM Experience

Chili Pepper software currently markets Infinite Disk, a file management
system based on HSM that relies on diskettes, optical, or removable hard
drives for intermediate storage. Available in DOS and Windows, the program
automatically tracks file activity on the hard drive. Based on user
defined tresholds, the software compresses and/or archives inactive files
to intermediate storage and automatically retrieves them when needed.

For example, using Chili Pepper's Infinite Disk software, if a file is not
accessed within 30 days, it may be compressed to half its normal size;
files not accessed within 90 days may be automatically archived off the
hard drive to a standard diskette with a specially numbered external label
(the file, although archived, still appears on the hard drive as a 0 byte
file to act as a placeholder).

If a file that has been compressed or archived is needed, retrieval is
fast, easy, and completely automatic. When a file that has been compressed
is accessed, it is automatically de-compressed. When a file which has been
archived is accessed, the user is prompted to insert the specific volume
which is needed, and the restoration is completed in seconds.

Background

Quarter-inch data cartridge technology, invented and patented by 3M, is the
world's most popular tape storage technology. It boasts an installed base
of more than ten million systems, with another three million drives
forecast for shipment in 1994.

Chili Pepper Software is the industries leading manufacturer of technically
innovative Storage Management software for Micro Computer environments.
For additional information contact Chili Pepper Software, Inc. at
800.395.1812 (voice) or 404.513.7411 (fax).

3M is the world's largest manufacturer and marketer of quarter-inch data
cartridges. For information on quarter-inch data cartridge technology,
contact 3M at 800.888.1889, ext. 33.

Chili Pepper Software
1630 Pleasant Hill Rd, Ste 180-200
Atlanta, GA 30136-5827
404-339-1812,  fax 404-513-7411

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