Apr 12, 1999

Seagate Singled out by Compaq for Outstanding Supplier Award

Seagate Technology, Inc. (NYSE:SEG) today announced it has earned the 1998 Compaq Supplier Partnership Award, making it the only U.S. company and the only storage products supplier so honored by Compaq. The commendation acknowledges outstanding performance by a supplier that demonstrates strategic importance to Compaq. Seagate earned the honor and endorsement because of its performance in meeting Compaq's goals for technology leadership, technology alignment, quality, availability, responsiveness and cost. Seagate provides a breadth of product to Compaq that includes disc drives for desktop PCs, workstations, servers and storage systems.

Compaq President and CEO Eckard Pfeiffer presented the award to Seagate President and CEO Steve Luczo at a ceremony in Houston on April 8, 1999. "Last year, Compaq ranked Seagate as its number one disc drive supplier. This year, out of several hundred Compaq suppliers, Seagate is one of only three to receive the Supplier Partnership Award. We recognize Seagate as a top performer because they provide us with high-quality, innovative products that meet our standards for performance, reliability and compatibility," said Pfeiffer. "Seagate has made a significant contribution to Compaq's business, supplying disc drives used in our servers for enterprise computing, consumer desktop PCs, and commercial desktop PCs, among them the popular Presario and DeskPro product lines."

"Seagate is extremely pleased to be recognized as a key storage technology supplier for Compaq, a leader in the industry," said Luczo. "Compaq is recognized as a leader in providing their customers with time-to-market products and technologies. Clearly, this leadership position reflects Compaq's strategy to align itself with suppliers, like Seagate, whose business model will help them meet their customers' needs. Seagate shipped about 4.2 million disc drives to Compaq last year, and shipments this year are expected to reach nearly 5 million, so this award reflects Seagate's commitment to deliver products and service that meet Compaq's high standards. This award is a significant achievement for Seagate, and we believe it is evidence of our commitment to align our company ever more closely with our customers."

This is the first year Compaq has selected its top vendors for recognition through a formal award. All vendors that do business with Compaq are eligible. Among hundreds of suppliers, just three earned the Supplier Partnership Award.

According to market-research firm International Data Corp., Compaq was first in terms of PC shipments last year, both in the U.S. and worldwide. Seagate supplies a comprehensive line of award-winning data storage products to Compaq. These products include Medalist and U4 disc drives for desktop PCs, and Barracuda and Cheetah disc drives for workstations and servers.

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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