FREMONT, Calif. — September 16, 2002 — Panasas, Inc., a pioneering company delivering the world's most scalable and agile storage network, announced today that it has secured $32 million in additional funding from six leading investment and technology firms. Centennial Ventures, a major investor in the communications industry, leads the round. Intel Capital, Intel's strategic investment program and Novak-Biddle Venture Partners are also new investors. Previous investors participating include Carlyle Venture Partners, Evercore Ventures and Mohr, Davidow Ventures (MDV), a third-time investor in Panasas. Steve Halstedt, managing director and co-founder of Centennial Ventures, has joined Panasas's board of directors.

"This new financing is a significant milestone for our company as we develop one of the industry's leading next generation storage networks," said Rod Schrock, Panasas president and CEO. "At Panasas, we intend to build a world class product with a satisfied customer base before publicly launching our system next year."

"We are enthusiastic about our investment in Panasas," said Steve Halstedt, Centennial Ventures. "With their continued progress in developing a next generation technology it is clear to us that they are poised for success in the network storage market."

About Panasas

Formed in 2000, Panasas, Inc. (www.panasas.com) is the pioneering leader in developing highly scalable and agile storage networks. Panasas is developing a network storage solution that eliminates the inherent scalability bottlenecks in capacity and performance experienced by traditional network storage systems. The system, based on industry standards, is designed to easily and cost-effectively integrate into existing IT environments. The company's headquarters are in Fremont, CA with a development facility in Pittsburgh, PA.