Dec 07, 2006

Seagate to Strengthen Media Substrate Supply with New Plant in Johor

Seagate Technology (NYSE: STX) today announced it is strengthening its media substrate manufacturing with a plant in Senai at Johor, Malaysia. This is Seagate's first media substrate manufacturing facility in Asia.

The plant, complemented by Seagate's Limavady, Northern Ireland substrate facility, will supply a large portion of the company's total requirement of aluminium substrates - the base platter on which magnetic materials used for digital storage are deposited for the manufacture of recording media used in the assembly of hard disc drives.

Seagate's substrate facility is designed to position the company for future growth arising from an increase in market demand.

The project will potentially create 2,500 new jobs when the plant is fully operational and running at maximum production capacity. Media substrate manufacturing activities are expected to start by 2008.

"Seagate's continued growth is supported by our strategic presence in the region," said Bill Watkins, Seagate chief executive officer. "We will work closely with the Malaysian government to leverage the established infrastructure as well as emerging pool of technological and human resources, bolstering economic growth for the country."

In his speech YB Tan Kok Hong, chairman of Johor Exco for International Trade & Industry, Energy, Water and Telecommunication said that in the first eight months of year 2006 alone, Johor had approved 137 projects that accounted for investment of RM 3.5 billion. "The Government will focus on attracting global manufacturers such as Seagate and work jointly with them to move Johor up the value chain and increase its integration into the global supply chains."

Seagate's media substrate manufacturing facility will be located at Senai, and the operation enables the company to leverage the technical expertise and resources of its existing printed circuit board assembly (PCBA) facility at Senai and media manufacturing facilities at Woodlands, Singapore, as well as efficiently feed its regional disc drive assembly operations.

"Seagate's vertical integration strategy of owning our component manufacturing capabilities has established us as the industry leader, shipping 119 million disc drives in our past fiscal year," said Jerry Glembocki, senior vice president of Seagate's global recording heads and media operations. "The facility in Johor will be a key addition to our global operations."

The Johor media substrate plant will consist of a new one-story manufacturing building with a built-up area of about 44,000 square meters, housing Seagate's state-of-the-art equipment and new-generation technologies.

Seagate's media substrate facility is the company's third manufacturing operation in Malaysia. The Penang slider facility, established in 1988 and located at Bayan Lepas, is the world's single largest manufacturer of thin film magnetic recording heads, a critical component in the reading and writing of digital data off the hard disc drive. In Senai, the company's printed circuit board assembly (PCBA) plant was set up in July 1996 to complement Seagate's Singapore electronics assembly operations (EAO).

About Seagate
Seagate is the worldwide leader in the design, manufacture and marketing of hard disc drives, providing products for a wide-range of applications, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Solutions. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing 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.

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