Feb 07, 2000

Seagate Makes Investment in Metabyte Networks, Licenses its MbTV Software Suite to Develop New Consumer Electronic Devices

SCOTTS VALLEY, Calif. - Seagate Technology Inc. (NYSE:SEG), the world's #1 disc drive supplier for the consumer and personal video recorder (PVR) market, announced today a minority investment in Metabyte Networks, a leading developer of personalized television products, and a licensing agreement to utilize its MbTV™ software suite. MbTV software is used in consumer electronics devices, enabling these devices to learn viewers' television viewing tastes, create viewer profiles, and deliver television content tailored to the preferences of the viewer. SeaStream™ the open standard created by Seagate, is integrated into MbTV in order to control the disc drive recording device, optimizing the delivery of video streams and managing acoustic and power levels. Seagate's investment in Metabyte Networks and licensing of its MbTV software suite is a result of the two companies' co-development relationship over the past year and their mutual goals in the consumer electronics market.

"As Seagate continues to execute against its consumer strategy, we will invest in companies like Metabyte Networks that will help advance Seagate's leadership in the consumer electronics market," said Seagate President and Chief Executive Officer Steve Luczo. "By licensing their MbTV software suite, Seagate becomes the first disc drive supplier to have this unique software that enables personalized television products. Without pre-disclosing competitive information, we plan to fully utilize this technology in order to increase our marketshare leadership in the PVR marketplace."

"Metabyte Networks is pleased that Seagate is expanding its relationship with MbTV," said Manu Mehta, president and CEO of Metabyte Networks, Inc. "With Seagate joining us as a strategic partner, we can provide today's busy television viewers with a resource that saves them time and increases their enjoyment of watching television."

Hard disc drives in home electronics can deliver entirely new levels of ease-of-use to the consumer. Much of the difficult configuration and management required by such home electronics as VCRs is automated through products using SeaStream-enabled hard drives to record programming. Viewers also benefit when using home electronics with SeaStream technology by being able to simultaneously manage multiple streams of audio, video, and Internet content as well as adapt the operating characteristics of the home entertainment device to its environment. A single SeaStream-enabled home entertainment device could simultaneously record several channels of television programming, play a movie, download CD-quality music from the Internet, and host a game of "Star Wars™ Episode I Racer" on a video game console.

MbTV's unique technology automatically learns its viewers' television watching tastes without any user intervention and creates personalized profiles that can be used to provide a variety of services. It can automatically recommend, record and delete desirable programs based on viewers' television watching tastes on a one way broadcast stream. The artificial intelligence built into MbTV automatically identifies multiple viewers in a household without requiring them to log in. MbTV does not manage a viewer's privacy, but protects their privacy 100%, as it does not require any data to be transmitted from the viewer's home.

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 Business Intelligence 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.

Metabyte Networks, Inc. develops software for personalized television products ranging from digital VCRs to targeted advertising, personalized TV portals and personalized data broadcasting. MbTV integrates with the existing infrastructure and its business model complements, not competes with the MSOs. Thompson and others are investors in Metabyte Networks, Inc. Metabyte has strategic partnerships with C-Cube Microsystems, and offers its MbTV products for Microsoft TV, the client software member of the Microsoft TV Platform Adaptation Kit (Microsoft TVPAK).

This press release includes forward-looking statements which are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, including, but not limited to, decreased product demand and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.

Seagate and Seagate Technology are registered trademarks of Seagate Technology, Inc. All trademarks are the property of their respective owners.