Aug 19, 1998

Seagate Expands Quinta Charter to Provide Advanced OAW Technology to all Seagate Design Charters

Seagate Technology, Inc. (NYSE: SEG) today announced a fundamental change in how its subsidiary, Quinta Corporation, will commercialize optically assisted Winchester (OAW(TM)) technology. Quinta, Seagate's Optical Technology Center, will now focus solely on the development of optical storage technologies, including OAW, and prove reliability through prototype development and testing. Once a technology is proven reliable, it will be transferred to Seagate's Advanced Concepts Laboratories and to its design centers for product development and delivery. The change in charter is designed to help proliferate OAW technology in the Seagate product line more quickly and efficiently while eliminating any unnecessary duplication in infrastructure. The move allows Quinta to focus on its core competency, optical technology development, while leveraging Seagate's strengths in product development, manufacturing, sales and marketing. Quinta is currently developing technologies capable of achieving areal densities much higher than today's hard disc drives and eventually breaking the superparamagnetic limit, the theoretical areal density limit of traditional magnetic recording technology. The first public demonstration of OAW technology is planned to be unveiled later this year at COMDEX '98, in Las Vegas, Nevada.

"Quinta has made significant progress in the past year in developing OAW technology as well as other technologies that could impact current magnetic recording," said Steve Luczo, president and CEO of Seagate. "By integrating them into the Seagate development cycle, we can leverage their technology into multiple product groups and product lines, simultaneously, versus one product at a time. Seagate also benefits by reducing unnecessary costs due to overlapping infrastructures and furthering our strategy of vertical integration."

"Since the acquisition, we have continued to achieve our technology milestones while building a world-class organization and facility" commented Steve Kitrosser, president and CEO of Quinta. "By aligning ourselves with Seagate's Advanced Concepts Laboratories and design centers, we now are better positioned to deliver these technologies to the appropriate product groups, thereby reducing time to market. Without this integration, there was a risk of becoming a one-product-at-a-time company, leaving valuable technologies sitting on the shelves, waiting for commercialization. This change allows Seagate to fully benefit from the 200-plus engineers and scientists working in our labs in San Jose." Quinta will continue to operate as a wholly-owned subsidiary of Seagate.

Pursuant to the acquisition agreement entered into by Seagate and Quinta last year, the shareholders of Quinta are eligible to receive additional payments upon the achievement of certain product development and early production milestones. Because of the fundamental change in direction, Seagate and Quinta have revised the payment schedule from a milestone-based schedule to a time-based schedule. As a result of this change, the applicable accounting rules require that the remaining unaccrued deferred payments of $76 million be recorded as an expense in the current quarter, although the actual payments of these monies will be spread ratably over seven quarters.

Quinta Corporation is a leading developer of advanced optical data storage technologies. Based in San Jose, California, and designated as Seagate's Optical Technology Center, Quinta has a state-of-the-art research and development facility. With over 200 employees that have over 2,500 years of data storage experience combined in magnetic recording, photonics, microelectromechanical systems, and other key technologies, Quinta is a premiere technology company in the data storage industry.

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 their 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 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.

Certain statements in this communication are forward looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by such forward looking statements. Such risk factors include, among others, the following: the uncertainties related to the development and introduction of products based upon new technologies, including the technological and economic viability of the OAW technology and related subsystems, manufacturing ramp and customer acceptance; the highly competitive nature of Seagate's industry and the rapid technological change within Seagate's industry; the uncertainty of patent and proprietary technology protection and the risks associated with litigation regarding the patents and other intellectual property rights; the importance of retention and attraction of key technical and other employees; general economic and business conditions; and other factors listed from time to time in Seagate's SEC reports.

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