Apr 03, 2000

Seagate Partners with Cobalt Networks to Deliver Scalable Storage and Data Protection Solutions to Internet Service Providers

SCOTTS VALLEY, Calif. - Seagate Technology, Inc. (NYSE:SEG), a leading provider of technology and products enabling people to store, access, and manage information, today announced the first of a suite of Linux-based server appliances targeted at Internet and Application Service Providers (ISPs and ASPs), through a strategic partnership with Cobalt Networks, Inc. (NASDAQ: COBT). The first Seagate Server Appliance Solution, scheduled to be available this summer, is an easy-to-use, cost-effective solution that provides scalable storage and reliable data protection for ISPs and ASPs. The Seagate Server Appliance Solution enables ISPs and ASPs to generate incremental revenue through vending storage and data protection applications to their small and medium-sized customers.

"As Web-based applications continue to evolve and drive storage requirements, the idea of an ISP providing storage as an incremental service to their small-to-medium sized business customers is becoming more and more of a reality," said Tom Mulvaney, senior vice president, Internet Solutions group at Seagate Technology. "Cobalt's strong positioning in the service provider market and their solid understanding of vending Web-based applications to small-to-medium sized businesses allowed Seagate to develop ways to better serve ISP customers through the delivery of storage as an application. Offering small-to-medium sized businesses access to their information, 24/7, without interruption and fully protected, is a service all businesses in today's Internet economy can't do without.

This partnership provides both companies with immediate and long-term value in delivering complete, turnkey, and affordable server appliance solutions. According to Dataquest, Cobalt is the marketshare leader (in unit shipments)for server appliances . Through the agreement, Seagate is granted complete access to Cobalt's large installed base of worldwide customers, including over 1,000 ISPs. This agreement will help increase Cobalt's efforts to capture marketshare in the server appliance space and to leverage Seagate's established sales and distribution channel that will broaden the Company's sales outlets. The agreement also provides Seagate the opportunity to utilize Cobalt's third party developer program for application development on the Seagate server appliances. Applications that will be developed on the Seagate server appliance will also be available for the Cobalt platform. Because the Seagate server appliance platform is Linux-based, application development and deployment will reduce time-to-market for Seagate's suite of solutions.

Seagate truly understands the potential of the new Internet economy and the value that Cobalt server appliances bring to their core business. As the Internet Service Provider market matures, competition becomes fierce, says Stephen DeWitt, president and CEO, Cobalt Networks, Inc. Seagate is capitalizing on their storage and data protection expertise and leveraging Cobalt server appliances to deliver tools to service providers enabling them to expand their service offerings to the growing small-to-medium sized business customers that are flocking to the Internet for their business-critical applications.

The data protection market is projected to grow from $968 million in 1998 to $2.4 billion in 2003, according to Strategic Research Corporation. According to Forrester Research, Internet hosting revenues are growing at 64% CAGR and will be at $14.6 billion by 2003. In addition, 72% of the total web hosting market is being driven by small and medium business, according to Morgan Stanley Dean Witter. Seagate's Server Appliance Solution is well positioned to provide fast-growing ISPs and their customers, cost effective, turnkey, scalable storage and data protection.

"Our hosting service is growing rapidly, said Al Albarracin, CEO of South Florida based Dialtone Internet, a Linux Data Center Provider. With this growth the amount of data to be stored and protected is increasing exponentially. A large number of our clients ask for a backup service and we would like to now be able to provide data protection as an added value service. A Seagate storage and backup data protection appliance would allow us to respond to these customers. This is a great example of the kind of appliantized' applications that are critical to our business."

Seagate's strategy for Internet solutions, specifically for server appliances, is designed to provide a broad product array for its customers. The first Seagate Server Appliance Solution is scheduled to be available this summer. Pricing and product specifications will be announced at that time.

Seagate Technology, Inc. (NYSE:SEG) 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.

Cobalt Networks, Inc. is a developer of server appliances that enable organizations to establish an online presence easily, cost effectively, and reliably. Cobalt's product linesthe Cobalt Qube, Cobalt Cache, Cobalt RaQ, and Cobalt NASRaQare used as Internet and Web hosting server appliances at businesses, Internet Service Providers, and educational institutions. Cobalt's solutions are delivered through a global network of distributors, value-added resellers and ISPs. Founded in 1996, Cobalt Networks, Inc. (http://www.cobalt.com) is located in Mountain View, Californiathe heart of Silicon Valleywith international offices in Germany, Japan, the United Kingdom, and the Netherlands.

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, delays and difficulties in research and development activities, technical difficulties, changes in the allocation of resources available for research and development, and other risks detailed from time to time in the Company's and Cobalt's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.

Seagate and Seagate Technology are registered trademarks of Seagate Technology, Inc. All other trademarks are the property of their respective owners.