Jan 13, 1997

Seagate Opens Mega Disc Drive Facility in Singapore

SINGAPORE - Seagate Technology, Inc. (NYSE:SEG) was joined today by Singapore's Prime Minister, Goh Chok Tong, as the company reaffirmed its commitment to the global high technology market with the official opening of one of the world's most advanced disc drive manufacturing facilities.

Located in the Singapore suburb Ang Mo Kio, Seagate's new state-of-the-art, one million-square-foot manufacturing plant was designed both to accommodate the production of today's technology-intensive hard disc drive products, and to quickly facilitate the rapid transition to tomorrow's technology advancements. The AMK plant is presently building some of the industry's most technically-innovative disc drives, including Seagate's Elite 23, a 23.4 Gigabyte, 5.25-inch drive that contains more than two-and-a-half times the capacity of the closest competitive product. Alan Shugart, Seagate's president, chairman and chief executive officer, at the opening ceremonies said the new plant is capable of producing 50,000 high-performance disc drives per day, making it the most productive operation of its kind in the world.

"Seagate is committed to maintaining its position as the world's largest manufacturer of disc drives and related components, and our new facility in Ang Mo Kio is central to our strategy," said Shugart. "To stay ahead of the market Seagate built a plant that can produce the data storage products of the future. Today's information technology products have a lifecycle of months, and the information they provide can have a lifecycle even shorter. The market will drive dramatic change, and Seagate will drive the technologies that help make change happen."

The Ang Mo Kio plant represents an investment of US$135 million (S$200 million) in fixed assets, bringing Seagate's total fixed assets investment in Singapore to US$1.1 billion (S$1.6 billion). Since Seagate began manufacturing in Singapore 15 years ago, the company has continuously invested in its employees and facilities. Singapore was Seagate's first volume manufacturing site outside the United States, and today accounts for over 55% of Seagate's disc drive revenue generation*. The world-class manufacturing operations in Singapore have been, and continue to be significant factors in the company's growth. Founded in the United States in 1979, Seagate has shipped more than 100 million disc drives, of which more than 67 million were shipped from Singapore. The new Ang Mo Kio factory will enable the Singapore operations to play a key role in achieving the company's goal of shipping its second hundred millionth disc drive in less than three years.

In his address at the opening ceremonies, Ron Verdoorn, Seagate executive vice president and chief operating officer for the company's Storage Products Group, stated that key factors influencing Seagate's selection of Singapore for the new facility included "the commitment, dedication and drive demonstrated over the years by the company's employees in Singapore, as well as the endless support offered by Singapore's government and its agencies, in particular, the Economic Development Board, during Seagate's 15-year partnership with the country."

Seagate employs more than 19,000 people in its Singapore operations which include a Research and Development center, Printed Circuit Board Assembly operations, Recording Media manufacturing, and Asia Pacific Sales, Marketing and Customer Service organizations. The Ang Mo Kio facility alone has an employment capacity of 20,000 people.

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, data access and management software, and microelectronics. The company began manufacturing in Asia in 1982 when it set up a plant in Singapore. Since then, the Asia Pacific manufacturing operations has grown to include China, Indonesia, Malaysia and Thailand. Seagate's home page address on the World Wide Web is http://www.seagate.com.

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*Percentage represents Q2, Fiscal 1997