Jul 18, 2000

Seagate Unveils Consumer Electronics Testing and Engineering Center (CETEC)

SCOTTS VALLEY, Calif. - Seagate Technology, Inc. (NYSE:SEG) today unveiled its Consumer Electronics Testing and Engineering Center (CETEC), the first center of its kind for helping Consumer Electronics (CE) companies integrate hard drives into new classes of consumer devices. CETEC is the industry's only Consumer Electronics-dedicated testing, integration and analysis facility. Located at Seagate's Longmont, Colorado design center, it offers unique services and CE-optimized disc drive technology to customers who are integrating disc drives into CE devices.

Many of the world's top Consumer Electronics device makers have flocked to CETEC, making Seagate the most popular strategic storage partner in the CE market. CETEC is the industry's most complete center of digital storage expertise for CE devices. It provides a single venue for helping CE leaders bring their product designs to market - from clarifying design issues in concept drawings to testing the product and developing protective packaging for volume shipment. CETEC integration and qualification services are customized for each CE customer, providing input that improves system performance and reliability, decreases costs and speeds time-to-market for Seagate customers.

"The list of significant partners with whom Seagate is working speaks to the appeal of CETEC and the quality and value of its technologies," said Dave Reinsel, senior research analyst at IDC. "Seagate established its leadership position by becoming the first disc drive supplier to ship HDDs into a brand new market, namely digital storage enabled consumer electronics. Seagate, no doubt, will build upon its unique position by being first to provide a premium value add service to CE customers with its innovative CETEC processes and services."

"Seagate's engineering team has worked closely with our engineers to test and develop our consumer products," said Dick Armstrong, vice president, Product Development at Hughes Network Systems. "The engineers at CETEC are experts at disc drive technology. They provided value-added input, helping us improve our product design."

CETEC is a key part of Seagate's strategy to help Consumer Electronics makers deliver disc drive-enabled CE devices such as Personal Video Recorders. Through CETEC, Seagate partners directly with CE OEMs who need hands-on assistance integrating disc drives directly into their own designs.

Some of the services offered by CETEC include:
7 Computer-based chassis evaluation - identifies potential issues before prototyping, enabling faster release to production
7 Reliability and environmental testing - simulates the system's real-world response to a number of circumstances: mishandling, acoustic performance, temperature and humidity extremes, to catch potential issues in the lab, not in the field
7 Compatibility testing - tests the combination of electromechanical components, software, middleware and programming service for flawless operation
7 Packaging analysis - delivers maximum protection for the product throughout the inventory and sales process
7 Care and handling training - decreases costly field returns through training CE company employees on the proper handling of disc drive-capable devices

"Delivering the benefits of fast, local disc storage of digital video and audio programs is something nearly every consumer electronics company has high on their new product agendas. Working closely together with Seagate at CETEC, these manufacturers are able to craft the best possible disc drive solutions - with the features, price point and reliability their customers expect in demanding consumer environments," said Richard Doherty, research director at the Envisioneering Group, a leading consumer electronics market research firm. "A great deal of the appeal of CETEC has been Seagate's ability to accomplish a meeting of minds between many of the world's finest disc drive designers and those consumer electronics experts seeking to add the power of rich, robust storage to their consumer products."

"We foresee hard disk drives being incorporated into a very wide range of consumer electronics devices over the coming years, creating exciting and powerful information and entertainment applications. At the same time such integration requires an extraordinary level of sophistication to ensure interoperability and ease of use in this new class of local storage-enabled devices," said Larry Gerbrandt, senior analyst for Paul Kagan Associates, Inc., a Carmel, California-based media research and consulting firm. "We believe integration services such as CETEC are likely to assist CE manufacturers in building the tools of the home entertainment revolution."

"Seagate's proven drive reliability and quiet drive designs, combined with their unsurpassed testing and engineering support for Acer, have made our joint research and development efforts successful," said S. Michael Sun, associate director of Advanced Technology Department at Acer, whose innovative consumer devices are aimed at making e-life a reality. "This level of cooperation enabled rapid troubleshooting, exploration of radical new designs and new materials, significant system noise reduction, and better shock protection than ever before. CETEC offers facilities and engineering expertise that are unmatched by any vendor."

"Our new technology and product designs truly push the envelope for creating Internet-based entertainment experiences. These experiences transparently connect digital appliances with the Internet and computers," said Pankaj Bishnoi, president and CEO of Enfinet Media, developer of Internet-powered digital media appliances. "We look to CETEC to provide industry-leading engineering support for development and testing. Through their prototype analysis services, CETEC is helping our engineers to solve problems and improve our product."

"As we ramp up our development of value-added systems for integration into CE devices, we continue to value CETEC's services and knowledge base," said Richard Johnson, president and CEO of CacheVision, whose technologies are designed to fuel the media revolution. "CETEC provides us with a unique expertise as the pioneer for integrating storage into CE devices. The engineers and facilities at Seagate's CETEC labs are already helping us deliver quieter, more reliable systems."

"Seagate is very much in the business of providing CE customers with the guidance, expertise, and infrastructure to design and test their hard drive-based consumer solutions," said Brian Dexheimer, executive vice president of Global Sales, Marketing and Product Line Management for Seagate. "CETEC is the CE industry's top gun design and integration center, delivering superior products, processes and people. We're the only company that can deliver the depth and breadth of CETEC's service - the CE OEM customer gets our total focus, and our customers tell us that we're the experts in this fast-growing segment."

Seagate is the leading storage partner for the Consumer Electronics industry, with industry-leading sales and market share confirmed by independent analysts. Seagate has sold more hard drives for CE devices than all its competitors combined. Seagate began working to develop the CE storage market long before its competitors and in 1997 was first to deliver disc drives for use in this new market. With the end-to-end relationships nurtured through its unique CETEC processes and services, Seagate maintains its advantage over other disc drive makers as the premium provider of added value services for CE customers. Today, Seagate is the most prepared, experienced disc drive company with whom to partner when bringing a CE device to market.

Seagate Technology, Inc. (NYSE:SEG) is a leading provider of the Internet Infrastructure 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, Storage Area Network (SAN) solutions and a leading developer of Business Intelligence 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.