Oct 15, 1996

Seagate Calls for Redemption of Convertible Subordinated Debentures

Seagate Technology, Inc. (NYSE:SEG) has called for redemption on December 17, 1996 the Companyms 5% Convertible Subordinated Debentures due 2003 (the l5% Debenturesn) and Seagate Peripherals, Inc., formerly known as Conner Peripherals, Inc., a wholly owned subsidiary of Seagate Technology, Inc., has called for redemption on December 19, 1996 the Companyms 6-3/4% Convertible Subordinated Debentures due 2001 (the l6-3/4% Debenturesn). The aggregate principal amount outstanding is approximately $271 million of the 5% Debentures and $209 million of the 6-3/4% Debentures.

The Board of Directors has approved a two-for-one stock split of Seagatems Common Stock, $.01 par value (the lCommon Stockn), to be effected in the form of a stock dividend. The record date of the stock split was November 11, 1996 (the lRecord Daten). As a consequence, the conversion price of the 5% Debentures became $13.125 and the conversion price of the 6-3/4% Debentures became $32.805 effective immediately after the opening of business on November 12, 1996. The trading price of the Common Stock on the New York Stock Exchange will not reflect the stock split until the open of the market on November 27, 1996. In order to avoid confusion, all information herein is presented on a post-split basis unless otherwise noted.

Prior to 5:00 p.m., New York City time, on December 16, 1996, holders may convert their 5% Debentures into shares of Seagatems Common Stock at a price of $13.125 (post-split) per share, or approximately 76.190 (post-split) shares of Seagatems Common Stock per $1,000 principal amount of 5% Debentures. Prior to 5:00 p.m., New York City time, on December 19, 1996, holders may convert their 6-3/4% Debentures into shares of Seagatems Common Stock at a price of $32.805 (post-split) per share, or approximately 30.483 (post-split) shares of Seagatems Common Stock per $1,000 principal amount of 6-3/4% Debentures. Cash will be paid in lieu of fractional shares in each case. On November 14, 1996, the last reported sale price of the Seagate Common Stock on the New York Stock Exchange, as adjusted to reflect the two-for-one stock split, was $ 37.4375 per share.

Alternatively, holders may have their 5% Debentures redeemed at a total redemption price of $1,041.39 per $1,000 principal amount of 5% Debentures, consisting of $1,035.00 principal amount plus accrued interest of $6.39. Any 5% Debentures not converted on or before 5:00 p.m., New York City time on December 16, 1996, will be automatically redeemed on December 17, 1996, after which interest will cease to accrue. So long as the market price of the Seagate Common Stock is at least $13.67 (post-split) per share, a holder of the 5% Debentures who converts will receive Seagate Common Stock with a market value (plus cash in lieu of any fractional shares) greater than the amount of cash the holder would otherwise be entitled to receive upon redemption.

Holders may have their 6-3/4% Debentures redeemed at a total redemption price of $1,054.00 per $1,000 principal amount of 6-3/4% Debentures, consisting of $1,033.75 principal amount plus accrued interest of $20.25. Any 6-3/4% Debentures not converted on or before 5:00 p.m., New York City time on December 19, 1996, will be automatically redeemed on December 19, 1996, after which interest will cease to accrue. So long as the market price of the Seagate Common Stock is at least $34.58 (post-split) per share, a holder of the 6-3/4% Debentures who converts will receive Seagate Common Stock with a market value (plus cash in lieu of any fractional shares) greater than the amount of cash the holder would otherwise be entitled to receive upon redemption.

Prior to December 14, 1996, shares of Common Stock issuable upon conversion of the 5% Debentures will be subject to transfer restrictions and will have a CUSIP number distinct from the CUSIP number for Seagatems publicly traded Common Stock. Beginning December 14, 1996, such transfer restrictions will expire and shares of Common Stock issuable upon conversion of the 5% Debentures will not bear any restrictive legends and will have the same CUSIP number as Seagatems publicly traded Common Stock. Conversion of the 5% Debentures prior to December 14, 1996 will subject the shares of Common Stock issuable thereby to restrictions on transfer.

A Notice of Redemption and a Letter of Transmittal (which may be used to surrender Debentures for conversion or redemption) are being mailed to all registered holders of the 5% Debentures and 6-3/4% Debentures. Copies of the Notice of Redemption and the form of the Letter of Transmittal may be obtained from the Company by calling Paul Fasching at (408) 439-7603.

Seagate Technology, Inc. is a data technology company that provides products for storing, managing and accessing digital information on the worldms computer and data communications systems. Seagate is the largest independent disc drive and related components company in the world. Seagatems home page address on the World Wide Web is http://www.seagate.com.

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