U.S. Securities and Exchange Commission

Litigation Release No. 17645 / July 31, 2002

, United States District Court for the Northern District of California,
Civil Action No. C-02-3685 RS.

   The Securities and Exchange Commission ("SEC") today filed a civil
   lawsuit against three Northern California men who made more than
   $670,000 in illegal profits through insider trading in the securities
   of Adaptec, Inc. The SEC complaint alleges that Michael Ofstedahl, a
   former Adaptec Vice President, abused his position by tipping inside
   information to his friend and dentist, Robert Rutner, in exchange for
   Rutner's promise to share any trading profits. Rutner in turn tipped
   William Kuncz, Rutner's friend and business associate, who also traded
   in Adaptec securities. In a separate incident, the complaint also
   alleges that Rutner abused his position as a member of the board of
   directors of Puma Corporation, by tipping Kuncz with inside
   information about Puma. Kuncz traded on this information and avoided
   losses of more than $9,000. Simultaneous with the filing of the
   complaint, and without admitting or denying the allegations in the
   complaint, Rutner and Kuncz agreed to settle the SEC action by paying
   more than $1,150,000 in disgorgement, penalties and prejudgment
   interest, injunctions against future violations of the securities laws
   and other relief. The SEC litigation against Ofstedahl continues.

   In addition, the U.S. Attorney's Office for the Northern District of
   California ("USAO") announced that a federal grand jury sitting in San
   Jose, California, has returned an indictment charging Ofstedahl with
   criminal securities fraud based on the Adaptec trades, as well as
   three counts of perjury, three counts of making a false statement to a
   government agency, and one count of obstruction of justice, based on
   untruthful testimony he gave during the SEC investigation.

   With regard to Adaptec, which is based in Milpitas, California, the
   SEC complaint alleges that Ofstedahl, Rutner and Kuncz engaged in
   insider trading in advance of an Adaptec press release issued after
   the close of the stock markets on January 6, 1999. In the release,
   Adaptec announced that its earnings for the quarter ended December 31,
   1998 would "exceed $.20" per share, well above analysts' estimates. In
   particular, the complaint alleges that
     * Ofstedahl, who was then Adaptec's Vice President for Worldwide
       Original Equipment Manufacturer sales, had a pre-existing
       agreement to share inside information about Adaptec's financial
       performance with his friend, Rutner;

     * Pursuant to this agreement, Rutner agreed to trade on inside
       information about Adaptec and split any profits with Ofstedahl;