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                  EXHIBIT 99.1 to 1997 Third Quarter FORM 10-Q

         IMPORTANT FACTORS REGARDING FUTURE RESULTS OF IPL SYSTEMS, INC.


Rapid Technological and Market Changes. The market for the Company's products is
characterized by rapidly changing technology and evolving customer needs which
increasingly shorten the life cycles of existing products and require ongoing
development and introduction of new products at an increasingly more rapid rate.
The Company's ability to realize its expectations will depend on its success at
enhancing its current offerings, developing new products that keep pace with
developments in technology and meet evolving customer requirements for
performance and price, and delivering those products with appropriate customer
service and support. This will require, among other things, correctly
anticipating customer needs, hiring and retaining personnel with the necessary
skills and creativity, providing adequate resources for product development.
Failure by the Company to anticipate or respond adequately to technological
developments and customer requirements, significant delays in the development,
product testing, or availability of new or enhanced products, or the failure of
customers to accept such products, could adversely affect the Company's
technological position and operating results. Furthermore, there can be no
assurance that the Company's competitors will not succeed in developing products
or technologies that have superior price/performance characteristics compared to
any products being offered or developed by the Company.

Competition. The computer data storage industry is intensely competitive and is
characterized by rapid technological change and constant price pressure. The
Company competes with a number of companies offering computer data storage,
back-up and recovery systems, including host computer vendors such as Sun
Microsystems and Hewlett-Packard and independent storage suppliers, including,
MTIC, Network Appliances, IBM, and EMC and others some of which have
substantially greater financial, product development, marketing and distribution
resources than the Company. The Company believes that to date no dominant leader
has emerged in the high bandwidth segment of the open systems storage market.
Due to the large and growing storage requirements in this market the Company
will continue to face strong pricing and technological competition as
competitors attempt to establish a leadership position.

Fluctuations in Operating Results; Recent Losses. The Company has recently
experienced losses from operations and may in the future experience further
losses and significant period-to-period fluctuations in operating results. The
Company's revenues in any quarter are dependent on the timing of product
shipments as well as the status of competing product introductions. Like many
other high technology companies, a disproportionately large percentage of
quarterly sales occur in the closing weeks of each quarter. Any forward-looking
statements about operating results made by members of management will be based
on assumptions about the likelihood of closing sales then in the pipeline and
other factors management considers reasonable based in part on knowledge of
performance in prior periods. The failure to consummate any of those sales may
have a disproportionately negative impact on operating results, given the
Company's relatively fixed costs, and may thus prevent management's projections
from being realized.

Patents and Protection of Proprietary Technology. The Company believes that its
success in developing new products depends primarily upon the technical
competence and creative skills of its personnel rather than on the ownership of
copyrights or patents. Although the Company believes that its products and other
proprietary rights do not infringe the proprietary rights of third parties,
there can be no assurance that other third parties will not assert infringement
claims against the Company or that such claims will not be successful. If any
infringement exists the Company would seek, based upon industry practice,
licenses to such patents, but there can be no assurance that the Company will be
able to obtain any such licenses on terms which would not have a material
adverse effect on its business. The Company also relies on unpatented
proprietary technology, and there can be no assurance that others may not
independently develop the same or similar technology or otherwise obtain access
to the Company's proprietary technology. To protect its rights in these areas,
the Company requires all employees to enter into confidentiality agreements.
There can be no assurance that these agreements will provide meaningful
protection for the Company's trade secrets, know-how or other proprietary
information in the event of any


















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unauthorized use, misappropriation or disclosure of such trade secrets, know-how
or other proprietary information. If the Company is unable to maintain the
proprietary nature of its technologies, the Company's business could be
adversely affected.

Dependence on Key Personnel. The success of the Company's operations depends on
its ability to attract and retain experienced technical, sales, marketing and
management personnel. Such personnel are in great demand and the Company must
compete for their services. Management's projections necessarily assume that the
Company will continue to attract and retain such personnel, so the failure to do
so could have a material adverse effect on the Company's ability to develop and
market competitive products.

Dependence on Suppliers. The Company has and will continue to rely on outside
vendors to manufacture certain subsystems and electronic components and
subassemblies used in the production of the Company's products. Certain
components, subassemblies, materials and equipment necessary for the manufacture
of the Company's products are obtained from a sole supplier or a limited group
of suppliers. The Company's reliance on sole suppliers or a limited group of
suppliers involves several risks, including a potential inability to obtain an
adequate supply of required products and reduced control over the price, timely
delivery, reliability and quality of finished products. The Company does not
have any long-term supply agreements with its suppliers. Certain of the
Company's suppliers have relatively limited financial and other resources. Any
inability to obtain timely deliveries of products and services having acceptable
qualities or any other circumstance that could require the Company to seek
alternative sources of supply or to manufacture its own electronic components,
subassemblies and manufacturing equipment internally, could delay the Company's
ability to ship its products. Any such delay could damage relationships with
customers and could have a material adverse effect on the Company's business and
operating results.

Quarterly Trends, New Product Introductions. The Company historically has
experienced significant fluctuations in its revenues and operating results,
including net income, and anticipates that these fluctuations will continue.
Quarterly results have been or may in the future be influenced by the timing of
announcements or introductions of new products and product upgrades by the
Company or its competitors, customer ordering patterns, product returns, and
delays in product development. In addition, new products typically have a
lengthy evaluation period before any purchase is made.

Competition and Risks Associated with New Product Introductions. The market for
the Company's products is intensely competitive. Increased competition could
result not only in a decline in sales volume, but also in price reductions that
could have a material adverse effect on the Company's business, operating
results and financial condition.

Stock Price Volatility. Due to the factors noted above, the Company's future
earnings and stock price may be subject to significant volatility, particularly
on a quarterly basis. Any shortfall in earnings from levels expected by
securities analysts could have an immediate and significant adverse effect on
the trading price of the Company's common stock in any given period. Shortfalls
could be caused by shortfalls in revenues, and/or increased levels of
expenditures. Additionally, the Company participates in a highly dynamic
industry, which often results in significant volatility of the Company's stock
price.