Jul 14, 1999

Seagate Ships Over 2 Million U4 Desktop Disc Drives to Leading PC Makers Bringing the Internet and Affordable Computing to Information-Hungry Users

Seagate Technology, Inc. (NYSE:SEG) today announced that more than 10 of the world's leading PC makers have embraced Seagate's unique U4 disc drive family to help them address customer needs in the flourishing low-cost PC market. Seagate has shipped over 2 million U4 disc drives since they were introduced in the Spring, and the drives are integrated into PCs made by Compaq, IBM, Hewlett-Packard, Acer, NEC, Siemens, eMachines and others. U4 is the industry's only disc drive designed specifically for sustained low-cost manufacturability and top reliability. Continued adoption of the U4 by the top-tier PC makers confirms a growing demand for storage solutions that address the entry-level market, which International Data Corp. (IDC) estimates will total nearly 38 million units by 2001.

"At Compaq, we're delivering PCs with incredible power for the Internet, uncompromising multimedia performance, and an unbeatable value," said Brett Faulk, Manager, Consumer Desktop Division, Compaq Computer Corporation. "The U4 is an ideal component delivering great quality and the best price-to-performance ratio, helping Compaq provide next-generation technology at attractive prices."

"With a super-reliable drive like Seagate's U4, we can confidently offer systems that will stand up to the challenges of daily, intensive use," said Haydn Hsieh, senior vice president and general manager, Computer and Consumer Products B.U., Acer Inc. "Acer desktop computers have passed those tests many times, always with honors. The U4 is helping Acer to provide our customers with the features they need, and at prices that fit their budgets." Acer is the world's third-largest PC manufacturer. In addition to Acer branded products, Acer also provides ODM/OEM manufacturing for IBM and other companies.

"With help from Seagate's U4, NEC has been able to meet the specialized requirements of each customer segment -- delivering the power to discover success to a broader base of customers than ever before," said Mr.Yoshikatsu Koiwa, Group Manager, PW Division POS Group of NEC. "NEC is world renowned for the utmost in quality and technical innovation -- Seagate's industry-leading reliability helps NEC POS systems live up to our reputation."

"Our Siemens PCs are known for excellent technology, Siemens quality and differentiated value add features," said Rolf Kleinwdchter, Director Marketing PC, "With the U4 drive's industry-leading reliability and built-in low price, we are supplying full multimedia action, power and enjoyment, with the latest technology, completely free of risk, and at a price that will please!"

The U4 provides the capacity and performance needed for applications like video and audio streaming, Internet navigation, multimedia, email and word processing.

"The world's leading PC makers continue to look to the U4, and to Seagate's unparalleled ability to address the growing sub-$800 PC market. Even with its built-in value price, the U4 supports the kind of applications that yesterday were available only to power users. By conceiving a disc drive with a cost-conscious design and extremely competitive specifications, Seagate is helping customers accelerate computing into new markets," said Brian Dexheimer, senior vice president of Desktop Marketing and PLM for Seagate.

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.

All Seagate storage products are Year 2000 compliant.

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

This release contains forward-looking statements. 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, the ability of the Company to successfully develop and market disc products. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.