Aug 24, 1998

Seagate Launches New World-Class Research Organization and Dedicated Facility

Dedicated to the exploration of advanced and alternative information storage technologies, Seagate Technology, Inc. (NYSE:SEG) today announced the launch of a new research organization and dedicated facility focused on the materials, processes and technologies that will extend the currently perceived limits of magnetic and optical recording. Based in Pittsburgh, Pennsylvania, Seagate Research will be linked to premier universities worldwide, to the Seagate component and drive design centers, and to the Company's Advanced Concepts Labs, including its Quinta subsidiary. Dr. Mark H. Kryder, previously director of the Data Storage Systems Center at Carnegie Mellon University, will oversee advanced research and development activities at the new Seagate Research facility. Dr. Kryder has been appointed senior vice president, and director, Seagate Research.

An initial investment of $30 million will provide the research center with the resources, staff and equipment needed to launch initial projects. In the first year of operations, Seagate anticipates the new organization will staff approximately 40 of the industry's brightest engineers, scientists and professionals and grow to a staff of over 100 people by the end of fiscal year 2001.

The data storage industry is a technology-driven business, said Tom Porter, Seagate executive vice president and chief technical officer. To maintain leadership in an environment of advancing technology and rapid product evolution, Seagate must foresee the limits of today's technology, understand the needs of tomorrow's world and build a strategic path towards the future. Seagate Research will be a scientific environment dedicated to galvanizing the creativity of the Company's strongest assets-our employee talent-and utilizing new resources to capitalize on our existing global infrastructure. Led by one of the industry's top research scientists, Dr. Mark Kryder, the facility will focus on critical research areas including superparamagnetic effects and advanced technologies to circumvent them. The goal of Seagate Research is to be the industry's leading center for technological advancement and human inventiveness.

Initial Seagate Research projects will include exploring materials, processes and devices that will enable scientists to push back the superparamagnetic limit, the theoretical areal density limit of traditional magnetic recording, and allow current magnetic recording technology to continue advancing for the next decade. Along with the Seagate-owned Quinta Corporation, the organization will dedicate resources to the continued development and research of optical storage technology. Moreover, research on future storage technologies such as scanning probe storage based upon micro-electromechanical systems will also be pursued, as will research on new storage system architectures and new applications for future generation ultra-high density storage devices.

Additionally, direct links to Seagate's component and drive design centers will be architected to foster cross-functional communication and assure the rapid transfer of emerging technology to the Company's Advanced Concepts Labs and product and component development teams.

Carnegie Mellon's Data Storage Systems Center has produced several spin-off companies in the past, said Jared L. Cohon, Carnegie Mellon president. The University is delighted that the innovative work that's been done by Dr. Kryder and others at the center has now attracted to the Pittsburgh region a major company like Seagate, the world's largest manufacturer of magnetic disc drives.

In other news from Seagate today, the Company announced the appointment of Dr. Mark Kryder to the newly created role of senior vice president, and director, Seagate Research. Seagate also announced the appointment of William D. Watkins to COO, the promotion of Dr. Mark Brewer to senior vice president, Information Technologies and CIO, and the promotion of Brian Dexheimer to senior vice president, Product Line Management and Marketing for Seagate's desktop product line.

Certain statements made in this release are forward-looking statements that reflect the Company's current expectations regarding the future and involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of the technological uncertainties associated with research and development activities and other factors.

Seagate Technology, Inc. (NYSE:SEG) is a leading provider of technology and products enabling people to store, access, and manage information. The Company is committed to providing best-in-class products to help people get 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 Enterprise Information Management software. Seagate can be found around the globe and on the World Wide Web at http://www.seagate.com. For automated news, stock and financial information by phone, dial toll-free 877-SEG-NYSE. Outside the U.S. and Canada, dial 760-704-4368.

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