Mar 01, 2000

Minebea and Seagate Enter Into Cross-License and Other Agreements Concerning Fluid Dynamic Bearing Motor Technology

MINEBEA Seagate Technology, Inc. (NYSE: SEG), the world's largest supplier of hard disc drives and related components, and Minebea Co., Ltd. (Minebea), one of the world's largest suppliers of precision components including small-sized ball bearings and hard disc drive spindle motors, today announced that they have entered into a cross-license agreement, a know-how license agreement, and a supply agreement regarding Seagate's most advanced and pioneering fluid dynamic bearing motor technology.

The cross-license and know-how license agreements enable each company to design, develop, manufacture, and sell fluid dynamic bearings and various motors including fluid dynamic bearing hard disc drive spindle motors using technology developed by both Seagate and Minebea. The supply agreement enables Minebea to become a major supplier to Seagate of fluid dynamic bearings and various types of motors including fluid dynamic bearing hard disc drive spindle motors based on Seagate and Minebea designs.

Gunter Heine, Seagate's vice president of motor technology said: "Seagate's fluid dynamic bearings are the result of our leadership in advanced technology, design, quality, productivity, and cost-effectiveness. Moving forward, disc drives will continue to require higher areal and track densities and increasingly quiet operation. Motor technology is a critical, enabling factor in current and future disc drive design, and we believe this agreement with Minebea will be of mutual benefit to both companies. Both Seagate and Minebea see this cross-license agreement as an intelligent way to bring the most advanced disc drive motors to market in a timely and cost-effective manner."

Rikuro Obara, Minebea's senior managing director for bearing and motor production said: "Minebea is the world's largest manufacturer of small-sized ball bearings and enjoys approximately 65% market share worldwide. With the addition of fluid dynamic bearings, Minebea now has a full complement of bearings, including ball bearings and outer-ring integrated RO-bearings, each using in-house manufactured steel or ceramic balls, making it possible to supply any type of precision small motors.

"We plan to construct a 15 billion Yen new manufacturing plant with two buildings at the Bang Pa-In facilities in Thailand," Obara continued. "The first building is scheduled for completion by the end of December 2000 and will be used exclusively for spindle motor and fluid dynamic bearing production."

Simultaneous with the completion of a new manufacturing plant in Thailand, Minebea's construction of a new facility will be completed at PMDM GmbH in Villingen-Schwenningen, Germany, a Minebea motor development subsidiary. This will enhance Minebea's competitive position regarding development, design, production, quality and cost in its motor operations.

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 Enterprise Information Management software. Seagate can be found around the globe and on the World Wide Web 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.

Minebea is a comprehensive manufacturer of precision components such as ball bearings, small motors, and keyboards that are indispensable to information & telecommunications equipment including PCs, household electrical appliances, aircraft, and automobiles. The Company has 35 manufacturing bases and 70 sales offices in 17 countries. Based largely on manufacturing plants in Thailand, which form the largest manufacturing center, it features a thoroughly integrated manufacturing system extending from machining to assembly of components, and supplies its products to customers worldwide.

This press release includes forward-looking statements which are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, including, but not limited to, decreased product demand, ability to develop and produce spindle motors and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.

Also this press release includes forward-looking statements of Minebea which involve risks and uncertainties, including but not limited to, decreased product demand, ability to develop and produce fluid dynamic bearings and spindle motors, and other risks. Actual results may differ materially from management expectations.