Aug 04, 1997

Seagate Completes Acquisition of Optical Technology Developer Quinta

Seagate Technology, Inc. (NYSE:SEG) today announced the completion of its acquisition of Quinta Corporation, a developer of unique optically-assisted Winchester (OAW) technology, designed to integrate optical, magnetic and telecommunications technologies for the purpose of building a new class of high capacity, cost-effective disc drive storage devices. This strategic move is designed to meet the increase in demand for affordable, high capacity on-line storage.

Under the terms of the acquisition, the shareholders of Quinta, other than Seagate, received cash payments aggregating $230 million upon the closing. Upon the achievement of certain product development and production milestones, shareholders of Quinta will be eligible to receive additional payments aggregating $95 million. Seagate anticipates that it will incur a charge to operations in the current quarter of approximately $180 million to $215 million in connection with the write-off of in-process research and development.

Quinta's OAW technology is a system that is being designed for potential implementation across a range of hard disc drive products. At the heart of OAW technology is a new head design that will integrate state-of-the-art optical elements into a Winchester-style flying head. The lens, utilizing conventional optics, focuses a laser beam onto the media to assist in the writing, reading and tracking processes. OAW technology also includes a unique fine servo and advanced light delivery system, which allows for the use of multiple heads. The end result is a system that supports very high areal density recording and reading on multiple discs. Quinta has applied for a number of significant patents related to storage technology and expects to apply for others.

Quinta, now a wholly-owned subsidiary of Seagate Technology, Inc., is a leading developer of ultra-high capacity disc drive technologies including optically assisted Winchester (OAW) technology. OAW technology is designed to integrate optical, magnetic and telecommunications technologies for the purpose of building a new class of high capacity, cost-effective disc drive storage devices. Quinta's objective is to meet the increase in demand for affordable, high capacity, high performance online storage. Based in San Jose, California, the company has a 55,000 square foot facility designed for initial manufacturing needs, research and development, and general administration.

Seagate Technology, Inc. is a leading data technology company providing products for storing, managing and accessing digital information. Seagate develops and manufactures some of the industry's most advanced information technology, including disc and tape storage devices, magnetic recording heads and media, precision motors, microelectronics, and data access and management software. With nearly $9.0 billion in revenue, operations in 22 countries and over 110,000 employees worldwide, the Scotts Valley, CA-based company is the world's largest manufacture of disc drives and related components and one of the globe's largest industrial corporations. Seagate's home page address on the World Wide Web is http://www.seagate.com .

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 factors include, among others, the following: the uncertainties related to the design, development and introduction of new or updated products based upon new technologies, including 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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