Seagate enters Notebook Hard Drive Market; Now shipping to Major Notebook PC Makers

Jun 16, 2003

SCOTTS VALLEY, California - Seagate (NYSE:STX), the industy's leading hard drive maker, has entered the notebook hard drive market with volume shipments of its new Momentus product. As the only independent maker of notebook hard drives, leading notebook computer makers have welcomed Seagate's entry into the fastest growing segment of the computer market. Momentus is the industry's first notebook hard drive to combine a high-performance 5,400-rpm spindle speed with the low battery-consumption of a traditional 4,200-rpm notebook hard drive, so that customers no longer have to choose between performance and mobility. Seagate's patented SoftSonic fluid dynamic motor and new QuietStep ramp load technology make Momentus one of the quietest, most rugged notebook hard drives available. Seagate's successful entry into the notebook hard drive market exploits the unique design, manufacturing and customer-focused business processes that have made it the number one hard drive maker for personal computers, consumer electronics and enterprise server systems.

"Within the enterprise and desktop hard drive segments, Seagate has proved over and over how its speed, flexibility, and efficiency allows the Company to benefit from new opportunities," said Dave Reinsel, Research Manager at market research firm IDC. "The launch of its new Momentus reflects the Company's intent to do the same in the mobile segment. The market for notebook hard drives is growing faster than the PC or the enterprise hard drive market, and will reach 50 million units in CY04. Given the limited number of notebook hard drive manufacturers, the market is ripe for additional vendors to emerge. Seagate, with its proven successful business model, is in a prime position to capitalise on this burgeoning growth opportunity."

"HP worked closely with Seagate on the early development of the Momentus product to define and agree on specifications, strengthening our long-standing technology alliance," said Margaret Franco, Marketing Director, mobile business PCs at HP. "We have teamed up to align our product plans, enabling a fast effective launch, focusing on a reliable product."

"We welcome Seagate's entry into the notebook disc drive market," said Teresa Hsieh, Associate Vice President, IT products business group, Acer. "Seagate has done a good job of meeting our storage needs in the PC and Enterprise markets, and this announcement indicates that their industry leadership has resulted in an excellent combination of performance and durability for the Momentus disc drive."

"For the last five years we've been improving all areas of the business so that we can effectively address every major disc drive market with the same success that we've had in the desktop and enterprise markets," said Steve Luczo, Seagate Chief Executive Officer. "As a result, we are able to exploit our design, technology, manufacturing and customer-process platforms in a unique way that allow us to enter new markets reliably and cost-effectively. Today, we are excited about entering the notebook market with a quality drive that we are confident will meet the performance and reliability requirements of our customers."

Performance and Technology
Along with a rise in demand for notebook computers is a demand for increased performance. Until now, a faster drive was not practical in notebook computers because it drained the battery too quickly. Momentus unlocks the power of notebook computers with a 5,400-rpm spindle speed, optional 8 Mbyte cache and low battery consumption that is competitive with 4,200-rpm hard drives thanks to careful optimisation of power management in the drive's electronics. Tests show that Momentus is 47 per cent faster at opening a 12 Mbyte Excel file, 30 per cent faster at copying a 170 Mbyte folder and 47 per cent faster at shutting down Windows XP than today's standard 4,200-rpm notebook drives. With the 8 Mbyte cache option, the drive performs up to an additional 15 per cent faster.

Seagate is well known for its quiet and rugged hard drives, and has made Momentus whisper quiet by using proven Seagate SoftSonic FDB motors and the innovative QuietStep ramp load technology. QuietStep parks the heads safely off the disc during standby, but reduces the clicking sound typically made by other notebook hard drives when loading and unloading its heads to the ramp. Seagate's rugged design gives Momentus a 225 G operational shock tolerance, among the best in the industry. Momentus offers popular capacities of 20 and 40 Gbytes on a robust one-platter design, and is being delivered to OEM customers now.

Seagate is the industry leader in the design, manufacturing and marketing of hard disc drives for Enterprise, PC and Consumer Electronics applications. The Company is committed to delivering award-winning products, customer support and reliability to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.

Seagate and Seagate Technology are registered trademarks of Seagate Technology LLC. The wave logo, Momentus, SoftSonic and QuietStep are trademarks or registered trademarks of Seagate Technology LLC. All other trademarks or registered trademarks are the property of their respective owners.

Safe Harbour
This press release contains forward-looking statements based on information available to Seagate as of the date of this release within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements related to our future products and product development plans and offerings, keeping pace with technological change, price and product competition, customer demand for our products, and general and market conditions. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. For more information regarding the risks facing the Company, we refer you to the Company's periodic reports filed with the US SEC, including its most recent 10-K and 10-Qs. The Company assumes no obligation to update the forward-looking information contained in this press release.