Jan 26, 2000

Seagate and Rodime Enter Into Settlement Agreement

Seagate Technology, Inc. (NYSE:SEG) today announced that the Company has agreed to settle with Rodime PLC regarding a patent infringement complaint relating to certain discontinued 3.5-inch drives filed by Rodime against Seagate on November 18, 1992. Pursuant to the agreement, Seagate shall be released from all patent and tort claims in exchange for a payment of $45 million.

Stephen Luczo, Seagate's president and CEO, stated "We maintain the position that Seagate had meritorious defenses to Rodime's claim. However, given the uncertainty associated with leaving such a technically complex matter in the hands of a jury with no expertise in disc drive technology, Seagate has compromised this claim to mitigate this uncertainty."

A charge associated with this settlement will be reflected in Seagate's Form 10-Q for the quarter ended December 31, 1999.

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 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.