Jun 16, 1997

Seagate Invests in Storage Area Network (SAN) Leader Gadzoox

SCOTTS VALLEY, Calif. - Seagate Technology, the world's largest disc drive manufacturer and leading supplier of high-performance Fibre Channel drives, today announced a strategic partnership agreement with Gadzoox Microsystems, Inc. of San Jose, California, supplier of the industry's only complete family of Fibre Channel Storage Area Networking (SAN) solutions. As part of the agreement, Seagate has invested $10 million in Gadzoox and will take a seat on Gadzoox's Board of Directors. The partnership is focused on developing the SAN market through joint marketing and product development activities.

Server applications such as Internet and Intranet access, digitized video and on-line transaction processing have dramatically increased data storage and high-speed connectivity requirements. Gigabit-speed Fibre Channel connectivity provides customers with a faster, more cost-effective and more easily scaleable alternative for delivering data from the storage devices to the servers.

"Fibre Channel-based storage area networking is important to Seagate's long term strategy in the high-end disc drive market," said Al Shugart, chairman, president and CEO of Seagate. "We chose to partner with Gadzoox because they have clear technological leadership in Fibre Channel connectivity products."

"Many of today's demanding new server applications are rapidly driving current storage device interconnect technologies to the limits of their effectiveness," added Steve Luczo, Seagate's executive vice president of Corporate Development. "The Gadzoox Fibre Channel SAN solution represents an excellent migration option for customers moving to these new applications. Some industries, such as video editing, prepress and the financial community are already feeling the need for high-speed Fibre Channel connectivity. We believe this need will expand to other industries."

"A partnership between Seagate and Gadzoox leverages the strengths of both companies," said Bill Sickler, president and CEO of Gadzoox. "Both are committed to Fibre Channel technology and networking the storage area. Both recognize the importance of network management and the need to optimize where it resides across the spectrum from storage device to networking infrastructure. Through this partnership we expect to strengthen our relationships with common OEM and distribution channel partners to provide users with comprehensive Fibre Channel based, networked storage solutions."

"Enterprise storage customers can better meet the performance, fault-resilience and flexibility requirements of data-intensive, mission-critical applications with Fibre Channel-based solutions," said Clive Surfleet, marketing manager of HP's Enterprise Storage Solutions Division.

"As the industry's leading supplier of Fibre Channel ASIC technology, Hewlett-Packard recognizes the opportunity that the Seagate-Gadzoox partnership represents," added Surfleet. "The alliance of data technology and storage-network infrastructure leaders, Seagate and Gadzoox, clearly has the potential to focus development on the creation of new products that advance server-storage networking capabilities."

In March 1997, Seagate and Gadzoox began collaborating with Interphase and W.L. Gore to provide OEMs, VARs and systems integrators with the industry's first pre-integrated, turn-key package for deploying Fibre Channel SANs. The Fibre Channel Starter kit includes all of the gigabit-speed Fibre Channel equipment needed to configure a dual-host SAN topology. The kit includes: a Gadzoox Fibre Channel-Arbitrated Loop active hub, a Seagate Barracuda 9-gigabyte Fibre Channel drive in a single disc enclosure, two Interphase 5526 PCI adapter cards with Windows NT drivers, copper Fibre Channel cables from W.L. Gore and user documentation.

Gadzoox Microsystems, Inc. is an industry leader in gigabit-speed Fibre Channel products for the open SAN market. The company develops a complete line of SAN connectivity products including hubs, bridges and switches. Headquartered in San Jose, California, Gadzoox is privately held and markets its products to system integrators, VARs and OEMs. Further information can be found on the company's website at http://www.gadzoox.com.

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 technologies, including disc and tape storage devices, magnetic recording heads and media, precision motors, microelectronics, and data access and management software. With $9.0 billion in revenue, operations in 22 countries and over 100,000 employees worldwide, the Scotts Valley, CA-based company is the world's largest manufacturer 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.

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