Aug 02, 2000

Compaq Honors Seagate with Pioneer Award

OKLAHOMA CITY - Seagate Technology, Inc. (NYSE:SEG) today announced that it has received a special "Pioneer Award" from Compaq Computer Corp. in recognition of Seagate's "outstanding contribution" to Compaq's supply chain optimization in 1998 and 1999.

"Seagate has been a key partner to Compaq for enterprise-class hard drives for a very long time," said Jack Baikie, Compaq Director of Enterprise Solutions and Services Group Procurement. "Recently, they extended their commitment to Compaq by playing a key role in the redesign of the supply chain for our enterprise hard drive business."

As part of this award-winning effort, Seagate worked closely with Banta, a third-party supplier to Compaq, to establish and improve its supply chain management capabilities. Together, they fulfilled Compaq's needs by streamlining the company's kitted-assembly disc drive supply in the Americas, Europe and the Pacific Rim. Their efforts reduced the number of global supply points from fifteen to three.

In this supply chain initiative, stand-alone hard drives are shipped to Banta facilities in Texas, Ireland and Singapore. Based on Compaq's product demand schedule, Banta assembles the drives into ready-to-install kits and tests them. They are then packaged under the Compaq name and shipped to Compaq customers who insert the kits into their servers.

"Seagate helped us to simplify the supply chain to improve the delivery of products to Compaq's customers," said Baikie. "They provided leadership in many areas, and this award is in recognition of Seagate's participation."

Seagate continues to help Banta set up and manage the kitting operations and create a universal configuration center for Compaq. A variety of best-in-class practices are being implemented into one process for Banta.

David Peck, director of Customer Service Operations (CSO) for Seagate's Oklahoma City Operations, Worldwide CSO Quality and Worldwide Contract Manufacturing, said the success of the project and the award reflects Seagate's continued leadership in customer service.

"The success of the project and the award we received is indicative of Seagate's expertise in this area and our efforts to help Compaq, one of our largest OEM customers, meet their ongoing business needs," Peck said.

About Seagate
Seagate (NYSE:SEG) is a leading provider of the Internet Infrastructure enabling people to store, access, and manage information. The Company is committed to providing best-in-class products to help people get information when, where and how they want it. Seagate is the world's largest manufacturer of disc drives, magnetic discs and read-write heads, an innovator in tape drives, Storage Area Network (SAN) solutions and a leading developer of Business Intelligence software. Seagate can be found around the globe and at http://www.seagate.com. For automated news, stock and financial information by phone, dial toll-free 877-SEG-NYSE. Outside the U.S. and Canada, dial 760-704-4368.

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