Nov 04, 2003

Seagate Granted International Headquarters Status, Announces Further Investments In Singapore

Seagate Technology (NYSE: STX) today announced that the company has been granted International Headquarters (IHQ) status from Singapore's Economic Development Board (EDB). Commensurate with this status, Seagate has established Seagate Singapore International Headquarters Pte. Ltd., which will provide regional support services to the company's operations throughout Asia. Seagate also today announced plans to invest S$500million in its Singapore operations over the next five years, bringing leading-edge technology and hundreds of new jobs to the country.

"Within a changing global economic landscape, Singapore is well-positioned for the next phase of economic development, and the country continues to provide an attractive environment in which to conduct business," said William Watkins, Seagate's president and chief operating officer. "During the past 21 years, Seagate and the people of Singapore have worked together to develop and strengthen our relationship. I believe the partnership and close cooperation between Seagate and Singapore will be further strengthened in the years ahead and will continue to reflect our mutual commitment to a stable, prosperous and equitable relationship."

Speaking at the media event, Teo Ming Kian, Chairman, EDB said, "We greatly appreciate Seagate's strong partnership, especially for its role in Singapore's leading position as the world's manufacturing capital of hard disc drives. Singapore's supporting industry, skilled workforce and extensive connectivity have facilitated Seagate to constantly achieve high quality products, undertake knowledge intensive activities and enjoy efficient supply chain solutions. We will continue to strengthen our competitiveness to enable Seagate's investments in Singapore to drive growth in the region and beyond."

The newly established IHQ organization, currently staffed by nearly 400 professionals, will provide regional support services to the following functions: Engineering, Procurement and Logistics, IT, Sales and Marketing, Human Resources, Finance, Corporate Communications, Environmental Health & Safety, Facilities, Security, and Intellectual Property Management.

Under the multi-million dollar investment agreement, Seagate will:
* Build a new recording media manufacturing facility;
* Undertake both R&D and manufacturing activities for the production of small form factor drives for use in PCs and consumer electronics devices;
* Upgrade current advanced automation machinery for the production of small form factor enterprise drives as well as products requiring the use of perpendicular media recording;
* Employ skilled local specialists to provide engineering expertise and support to Seagate's development and manufacturing activities.

Included in the strategic investment is the S$200 million extension of Seagate's recording media manufacturing facility at Woodlands, announced in June of this year and scheduled to begin production in the third calendar quarter of 2004. The new facility, which will produce new-generation technologies and employ state-of-the-art manufacturing equipment, will produce more than 50% of Seagate's total requirements for recording media. More than 400 new jobs will be created to accommodate this expansion.

About Seagate Technology
Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives, providing products for a wide-range of Enterprise, PC, Notebook and Consumer Electronics applications. The company is committed to delivering award-winning products, customer support and reliability, to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.

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