Jun 16, 1998

Seagate Endorses DAT's Newest Format with Plans for DDS-4 Products

Seagate Technology, Inc. (NYSE: SEG), a leading manufacturer of computer tape drive products, today confirmed its continuing commitment to Digital Audio Tape (DAT) technology by announcing its plans to develop a new family of tape drives based on the technology's next format, Digital Data Storage-4 (DDS-4). DAT drives using the new DDS-4 technology will offer up to 40 Gbytes of storage with compression and other enhancements to current DAT products, while maintaining backward compatibility.

Currently commanding the second largest share of the worldwide DAT market with its award-winning Scorpion line, Seagate is a leading producer of internal and external DAT drives sold to resellers and VARs, for integration into server and workstation products and to leading OEMs like Gateway, IBM, Intergraph and Sun Microsystems. The Company's Scorpion 24 drive recently earned Windows Magazine's 1998 Win100 award.

Seagate's DDS-4 drive will adhere to the definitions set forth by the DDS Manufacturers' Group. The specifications require that all DDS-4 drives achieve 20GB native capacity on a 150-meter DDS-4 tape and transfer rates between 1MB/s to 3MB/s (native). The drive will be designed to be backward-read-compatible with DDS-DC and read-and-write-backward compatible with DDS-2 and DDS-3 format tapes. Seagate is expected to make a detailed product announcement sometime in the first half of 1999.

``Seagate will continue to deliver solutions to customers who depend on DAT to protect the valuable information they rely on every day,'' said Kevin Perry, senior director of Marketing and Business Development for Seagate Tape Operations. ``With up to 40 Gbytes of capacity, high data integrity, quick transfer rates, and products from multiple sources based on open standards, DAT continues to offer solid value and performance for PC servers and workstations.''

DDS-4 achieves its high capacity with an increase in tape length, a 25 percent reduction in the width of the tracks and a tighter specification for the required straightness of the tracks.

Seagate Technology, Inc. is a leading provider of technology and products enabling people to store, access, and manage information. Seagate 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 software for information availability, access and analysis. With over $7 billion in revenue for the last twelve months, Seagate can be found around the globe and on the World Wide Web at 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 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 DDS-4 technology; manufacturing ramp and customer acceptance; the highly competitive nature of Seagate's industry and the rapid technological change within Seagate's industry; 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.