Feb 01, 1999

Seagate Strengthens Support for Channel Distribution with Increased Focus on Key Partners

Seagate Technology, Inc. (NYSE:SEG) today announced it will further strengthen its channel distribution strategy by focusing its sales and marketing activities on a select number of authorized distributors in the Americas. The Company has identified six key distributors with which it will jointly develop marketing programs targeted at VARs, resellers and systems integrators.

Storage-related solutions and technologies are growing in strategic importance across multiple market segments, creating significant business opportunities for OEMs and systems manufacturers, distributors, VARs and systems integrators, said Steve Luczo, Seagate president and chief executive officer. We have aligned ourselves with channel partners who share our view, and want to focus on information storage products as their strategic line of business. Our new distribution business model is designed to increase Seagate's market share, and that of its channel partners, through the dedication of additional resources to key distributors and resellers.

Seagate has identified its key Americas distributors as: Arrow Electronics; Bell Microproducts; CHS; Decision Support Systems (DSS); Ingram Micro and Synnex Information Technologies.

Storage products represent the next major market opportunity for value-add in the channel, and our business strategy aligns very well with Seagate's vision, said Jerre Stead, the chairman of the board and chief executive officer for Ingram Micro. With the increased focus and resources our two companies are providing, we are putting specific new programs in place that will give a competitive advantage to customers targeting the storage business.

"CHS is pleased to work with Seagate to enhance service to our customers in the reseller channel," said Claudio Osorio, chairman of the board and chief executive officer, CHS. "Both companies see exciting changes on the horizon as the growing importance of information storage and access increases the market potential for channel partners providing strategic storage solutions. Our enduring partnership with Seagate reflects that shared view."

This new distribution strategy allows Seagate and Bell Micro to accommodate both short- and long-term business objectives, said Don Bell, chairman of the board and chief executive officer, Bell Microproducts. With the commitment of additional resources and the joint development of new business processes and targeted marketing programs, we will better serve the needs of our customers and the needs of the market.

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.

This release contains forward-looking statements relating to shipment and distribution of Seagate products. 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 its products. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

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