Apr 20, 1999

Seagate U4 Disc Drive Gaining Broad Acceptance at Major PC OEMs for Commercial and Consumer Applications

Seagate Technology, Inc. (NYSE:SEG) today announced that top PC makers including Fujitsu, emachines and other market leaders are employing Seagate's new U4 disc drive to target the growing sub-$1,000 PC and consumer appliance markets. U4 is Seagate's second generation of drives uniquely designed for these segments, and eleven of the world's leading computer makers have qualified, or are completing qualification of the drive. The rapid acceptance of the U4 underscores the high demand for storage solutions that address these markets, which International Data Corp. (IDC) estimates will total nearly 38 million units by 2001.

The U4 drive provides the industry's best reliability plus the capacity and performance needed for applications like video and audio streaming, Internet navigation, multimedia, email and word processing.

"Seagate's U4 is designed to support our goal to provide PCs for a full spectrum of uses including entertainment, education and home working, with powerful specifications at low price points," said Mr. Ove Eriksson, Director of Purchasing, Storage Devices (Europe) at Fujitsu Computers Ltd. "Fujitsu develops technology to meet the needs of real people in a real world, catering to everyone from large corporations, to small to medium sized enterprises, and home users. Our product range reflects these diverse needs. The changing face of the PC marketplace requires a broader range of new Fujitsu PCs, and new solutions like Seagate's U4 help enable this."

eMachines, Inc., has chosen Seagate's U4 for its sub-$600 eTower computers. eMachines has become the fastest growing supplier of personal computers in history, last month achieving the number four market share position in US retail desktop PC sales, according to PC Data. PC Computing awarded four stars to the $399 eMachines eTower 300c and called it "a full-featured multimedia systemlots of extras at an astonishing price."

"With our focus on delivering a new level of PC affordability, outstanding product quality, and mass retail distribution, the U4 disc drive and Seagate's renowned customer support play an important role in supporting our business strategy for opening up the market to new computer users," stated Stephen A. Dukker, President and CEO of eMachines, Inc. "Seagate's superior product reliability has undoubtedly contributed to eMachines' dramatically low return rate, less than half the industry average."

Gobi Inc., has launched a national consumer technology service that provides home subscribers with a powerful Intel Celeron PC and unlimited Internet access for about the price of basic cable TV service, eliminating the need to buy expensive hardware up front or have technical expertise to go online. The company is now shipping the first of over 1,000,000 computers it expects to provide this year.

"Gobi's primary goal is to provide our customers with the best overall value in terms of our PC and our Internet services," said Ganesh Ramakrishnan, Gobi CEO. "Our platform certainly had to be cost effective, but at the same time we couldn't give anything up in terms of performance or quality. To that end, the U4 family of hard disc drives from Seagate is the perfect choice for Gobi systems. Seagate is ahead of their competition by recognizing the cost constraints in the value segment, and designing a drive from the ground up that would fit that space. However, the specs of the drive are extremely competitive with drives targeted at higher end markets. The Seagate U4 family allows us to move up in drive capacity points, along with the industry, and not sacrifice the compatibility, quality and reliability that we originally designed into the Gobi system."

PC maker Pionex specializes in systems that come fully configured and ready to run right out of the box. Available at over 600 retail locations, Pionex systems incorporate the latest advances and are uniquely designed for unparalleled upgradeability. "We are pleased that Pionex can continue to offer the brand components that they find in other top tier machines," stated Steve Smith, vice president, Pionex Retail Products Group.

"The adoption of the U4 by leading PC makers, and its broad acceptance for a variety of new applications is an endorsement of Seagate's unique capabilities to address this market. Ownership of key technologies and manufacturing resources enable Seagate to deliver diverse solutions to our customers, and to consumers, when where and how they want them," 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.


Seagate and Seagate Technology are registered trademarks of Seagate Technology, Inc. U4, SeaShield and DiscWizard are either trademarks or registered trademarks of Seagate Technology, Inc. or one of its subsidiaries. All trademarks are the property of their respective owners.

This release contains forward-looking statements relating to shipment and delivery of the U4 platforms and the Ultra ATA/66 interface. 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 the U4 platform and the Ultra ATA/66 interface. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.