Seagate Technology Announces Quarterly Distribution To Shareholders

SCOTTS VALLEY, Calif. - Seagate Technology (NYSE: STX) today announced that, consistent with its quarterly dividend and distribution policy, its Board of Directors declared a quarterly cash distribution of $0.03 per share to be paid on or before February 28, 2003, to all common shareholders of record as of February 14, 2003.

The Company anticipates that the distribution will be a return of capital for U.S. federal income tax purposes and will not be taxable as a dividend. In such case, for U.S. tax purposes, shareholders would reduce their tax basis in their common shares by the amount received (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by the shareholder on a subsequent disposition of the common shares). Non-U.S. shareholders should consult their tax advisors regarding the proper tax treatment of the distribution.

Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives for Enterprise, PC and Consumer Electronics applications. The Company is committed to 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.