Jan 08, 1996

Seagate Signs Definitive Agreement to Acquire Arcada Software Minority Interest

SCOTTS VALLEY, Calif. - Seagate Technology, Inc. (NYSE:SEG) today announced it has signed a definitive agreement to acquire the minority interest of Arcada Software, Inc., a majority-owned subsidiary of Conner Peripherals, Inc. As previously announced, Seagate and Conner have signed a definitive agreement for the merger of the two companies.

Conner presently owns approximately 69% of Arcada, assuming exercise of all outstanding options to acquire Arcada common stock. Pursuant to the definitive agreement, the minority stockholders of Arcada will receive a .1545 share of Seagate common stock for each share of Arcada common stock, and each option to acquire Arcada common stock will be converted into an option to purchase a .1545 share of Seagate common stock. This purchase is contingent upon normal closing conditions, including the consummation of the merger of Seagate and Conner.

This transaction will be accounted for as a purchase. Assuming consummation of the transaction in the quarter ending March 31, 1996, Seagate estimates it will incur a charge to operations of approximately $35 million to $40 million in that quarter in connection with the write-off of in-process research and development.

Seagate Technology, Inc. is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate, at more than $5.0 billion in revenue for its last 12 months ended September 29, 1995, is the largest independent disc drive and components company in the world. Seagate's home page address on the World Wide Web is http://www.seagate.com.