Jul 10, 1995

Seagate Undertakes Multi-Million Dollar Investment in U.S., Asian Component Operations to Meet Growing Worldwide Demand for Disc Drives

Seagate Technology, Inc. (NYSE: SEG) today announced that the company has undertaken a multi-million dollar investment in its media and substrate manufacturing operations in the United States and Asia. This investment underscores Seagate's commitment to a vertically-integrated manufacturing strategy which continues to provide the company with a strong base of core technologies, and is designed to take full advantage of complementary technical capabilities in heads, media, motors and semiconductors.

Demand for PCs is running at a 25 percent higher growth rate than last year's industry predicted growth rate, thus resulting in an even greater demand for disc drives.* Independent market research statistics indicate that total disc drive industry shipments, which are expected to exceed 90 million units this year, will grow to more than 116 million units per year in 1996, and exceed 193 million units annually by the end of the decade.*

"The expansion of our manufacturing operations around the world should insure that Seagate will have the resources necessary to meet market demand, continue to provide a solid base of advanced component technology and remain the largest independent disc drive and components company in the world," said Ron Verdoorn, executive vice president and chief operating officer of Seagate's Storage Products Group.

Seagate has already begun construction of a new 163,000 square-foot, highly-automated media manufacturing facility in Singapore. The facility will include state-of-the-art Class 10 clean rooms, tool-to-tool conveyors and a totally automated material handling system to ensure high quality process stability. The plant is scheduled to begin shipping finished media in mid-1996.

Seagate is also making a substantial capital investment in its existing media and substrate operations in Fremont and Anaheim, California. The investment in additional robotics equipment for the Anaheim plant will significantly increase production capability for both aluminum substrates and the more durable, light-weight glass substrates found in today's advanced laptop computers. In combination with additional capital investment in the company's Fremont facility, Seagate's global production capability for finished media is anticipated to double by the end of 1997.

"Media manufacturers are struggling to meet demand requirements of the next 18 months," said Crawford Del Prete of independent market research firm, International Data Corporation. "In light of this, we see a continuing industry shortage in media availability. Given this situation, Seagate's expansion should insure that the company will not be greatly impacted by the lack of critical components. The expansion of Seagate's component operations should well-position the company to maintain its leadership position in core component technologies, and continue to satisfy industry demand."

Rising Demand for Storage Capacity

"With the move to client/server architectures, the availability of operating systems like Windows 95, and the increased use of larger applications and multi-media, the demand for storage capacity continues to increase," said Verdoorn. "To keep up with this demand, our media and substrate operations are continuing to push the limits of storage technologies. Seagate engineers expect to significantly boost drive capacities by pushing the technical capabilities of the heads, media and read/write channel." Seagate's home page address on the World Wide Web is http://www.seagate.com.

*Statistics from International Data Corporation