Jun 28, 1999

Seagate Lowers Q4FY99 Earnings Expectations

Seagate Technology, Inc. (NYSE:SEG) today announced that due to weaker than anticipated demand for its disc drive products together with price deterioration for its desktop disc drive products that has exceeded expectations, it will not meet its earnings estimate for its fourth fiscal quarter ending July 2, 1999.

Prior to these events, the Company had anticipated earnings of $0.45 per share on a pro forma basis, adjusting for its sale of Seagate Software NSMG to VERITAS Software Corporation. The company currently expects earnings per share excluding all of the effects of the sale of Seagate Software NSMG to be in the range of $0.32 to $0.37. Revenues from all disc drive products may be approximately $100 million or 6 percent below fiscal third quarter results. Furthermore, the extremely aggressive pricing environment for desktop disc drive products will adversely impact results for its quarter ending October 1, 1999.

Seagate expects to report its fourth fiscal 1999 quarter results on Thursday, July 15, 1999, after the close of the market.

This release contains forward-looking statements relating to the company's business and earnings outlook. These forward-looking statements are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, competitive factors, demand for the company's disc drive products and pricing environment. Seagate undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

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 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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