Dec 10, 2001

Seagate Strengthens Customer Relationships by Engaging Them in Six Sigma

TAIPEI, Taiwan - Seagate Technology, the world's leading disc drive supplier, is extending the successful implementation of its Six Sigma quality initiative to its worldwide customer base, providing them with significant benefits including higher product quality and more efficient business processes. The Company today announced that its joint Six Sigma effort with key customer ACER Sertek has resulted in a dramatic decrease in the number of unnecessary product returns. This is providing significant cost savings and increased efficiency for both companies.

Utilizing Six Sigma methodologies, Seagate and ACER Sertek recently focused on the issue of "No Problem Found" (NPF) products that were returned from customers. These are disc drives mistakenly thought by customers to be defective and returned, but upon examination there is "No Problem Found" with the drive. As part of the solution, a Seagate Six Sigma team worked together with Acer Sertek to provide technical training on NPF and ensure the mandatory use of the Seagate Drive Self-Test process to verify drive performance.

"By engaging our customers in Six Sigma, we are strengthening our strategic relationships with them and becoming increasingly important to their overall success," said Joel Stead, Seagate senior vice president, Worldwide Sales & Marketing. "This initiative has increased the efficiency of our own operations and processes and has also resulted in increased customer satisfaction. Seagate will continue to work closely with its customers around the world who are interested in deploying Six Sigma within their own operations."

"Seagate has made substantial investments and seen tremendous results in their Six Sigma implementation," said Calvin Chang, vice president, Marketing Division, ACER Sertek. "We are pleased to be working with them on Six Sigma projects, and the benefits we have derived are enabling us to improve our efficiency and operations. It has been an enriching experience and we look forward to working jointly with Seagate to continue our Six Sigma program."

About Seagate
Seagate is the world's leading provider of storage technology for Internet, business and consumer applications. The Company's products include disc drives for the Enterprise, PCs and Consumer Electronics, as well as Storage Area Network (SAN) solutions. Seagate's market leadership is based on delivering award-winning products, customer support and reliability to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.

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