Jun 02, 1997

Seagate Fourth Fiscal Quarter Results to be Below Expectations

Seagate Technology, Inc., (NYSE:SEG) today announced that weaker than anticipated demand, particularly for its higher performance products, is expected to cause revenue levels for the quarter ending June 27, 1997 to fall below expectations. Although the longer term outlook for the storage business looks strong, we expect revenues for this quarter to be 6% to 10% below the revenues of $2.5 billion reported for the immediately preceding quarter. Gross margin percentages for the quarter are expected to approximate gross margin percentages for the March quarter but net income and fully diluted net income per share, before accounting for any one time charges related to acquisitions, settlement of the Amstrad litigation or other one time charges may be less than the $1.01 fully diluted earnings per share reported for the quarter ended March 28, 1997.

The above forward looking statements involve a number of risks and uncertainties including unit shipments, revenue, gross margins, operating expenses, tax rates, capital spending, depreciation, cash flow, inventories, market conditions and other matters. Actual results could differ materially as a result of several factors including demand for computer systems, competitive factors, pricing environment, the company's ability to introduce new products on a cost effective and timely basis, component availability, success in technological advances and manufacturing ramps, risks associated with non U.S. operations, litigation and other factors listed in the company's SEC filings, including our 10K, proxy statement and annual report, and in our 10Q filing for the period ended March 28, 1997.

The Company also stated that it will be seeking authorization from its Board of Directors to purchase up to an additional $600 million worth of its stock from time to time on the open market. This is in addition to the nearly $570 million of its stock purchased during the current fiscal year.

Seagate Technology 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 $9.0 billion in revenue for its last twelve months ended March 28, 1997, 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.

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