Sep 14, 1999

Increased Operational Efficiencies at Seagate Lead to Changing Workforce Requirements

SCOTTS VALLEY, Calif. - Over the course of the past year, Seagate Technology, Inc. (NYSE:SEG) has aggressively implemented a number of corporate-wide initiatives designed to optimize and align its business practices, processes and systems. As a result of the Company's significantly improved productivity and operating efficiencies, a smaller global workforce will be needed to meet existing and anticipated future market requirements. A workforce reduction, approximately 10% over the next 9 months, will be managed through natural attrition, voluntary separation packages, and job elimination where required. These actions will result in restructuring charges of up to $200 million during the current quarter. When fully implemented, the Company expects to realize a $150 million cost savings per year from these actions.

Looking forward, competing successfully in an increasingly challenging global economic environment will require Seagate to continue to drive rapid product evolution and advances in storage technology. To be the most agile, efficient and technologically capable manufacturer of information storage devices Seagate continues its implementation of advanced manufacturing processes and high volume automation. The resources required for this factory of the future include a smaller and much more technically skilled workforce than that which has traditionally been sought by disc drive manufacturers. As a result, the Company expects to incur additional restructuring charges as necessary due to expected continued operational efficiencies. Seagate's internal skillset development programs have been designed to address this rapid transition.

As Seagate continues to standardize global operations and drive commonality into the Company's product roadmaps, it remains best positioned to deliver lower cost and higher quality products, rapidly respond to customer requests, and develop the processes and technologies needed to build a broad line of increasingly sophisticated storage products and deliver them to market faster.

Seagate Technology, Inc. is a leading provider of technology and products 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, 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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This release contains forward-looking statements relating to the Company's business, pricing, earnings outlook, restructuring, inventory write-downs and other one-time charges. These forward-looking statements are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, competitive factors, pricing environment, the extent to which facilities and equipment are determined to be excess or unusable for alternative operations of the Company, severance costs to be incurred, the nature and amount of inventory write-downs and other reserve requirements. Seagate undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.