Jun 19, 1996

nSTOR Corporation, Inc. Purchases Seagate Storage Systems Group

LAKE MARY, Fla. - nStor Corp., Inc. today announced it has signed a definitive agreement to purchase Seagate Storage Systems Group, formerly Conner Storage Systems Group, from Seagate Technology, Inc. (NYSE:SEG). Transfer of ownership is effective June 3 and includes a 90-day transition period where the two companies will work together to ensure a smooth transfer of operations. The terms of the agreement were not disclosed.

With the Seagate Storage Systems Group, nStor Corp. will acquire the nStor product line, which provides users with high capacity storage and uninterrupted access to business data. The nStor product family features a full line of robust, fault-tolerant RAID subsystems, designed for use in PC networks and video networks. The new nStor Corporation will be managed by R. Daniel Smith, president and chief executive officer at Intelligent Manufacturing Systems, Inc. (IMS).

We are pleased by todays announcement, which makes eminent sense in both companies strategic plans," said Steve Luczo, Seagate executive vice president of Corporate Development. "We look forward to working with nStor Corp. to continue providing Seagate disc drive products for their nStor disc array systems.

IMS, a sister company to nStor Corp., is a privately-held company specializing in manufacturing and distribution solutions. The company provides software solutions designed for scalability, portability and support for emerging standards, protecting and increasing the life cycle of customer investments. IMS offers products for activity-based costing, MRPII and EDP systems, RF data collection, and ISO 9000 compliance.

"We are excited about the acquisition of the nStor product family, which is backed by an outstanding engineering, marketing and sales team," said Smith. "The nStor team are innovators, bringing to market strong RAID storage products and working with other leaders, such as Intel, in advancing standard methods to monitor and report status information of storage subsystems. The RAID market is fast-growing and we believe nStor is well-positioned for continued growth. We look forward to continuing to build on established strategic and customer relationships. The nStor subsystems provide robust data network storage solutions across heterogeneous environments, particularly for storage-hungry applications such as document imaging, video and multimedia, or transaction-heavy environments, such as banking and order entry systems. In addition, as companies continue their move toward client/server systems, data storage requirements on both networks and specialized workstations are growing exponentially, and tolerance for system downtime is near zero. Based in Lake Mary, Fla., nStor Corporation, Inc. produces the family of nStor disk array products which provide up to 32 Gbyte per subsystem of high availability storage and support a variety of operating systems, including Novell NetWare, Microsoft NT Server, SCO UNIX, IBM OS/2 LAN Server, and IBM OS/2 Warp. The group sells products through a worldwide network of dealers, distributors and value-added resellers. The nStor home page address on the World Wide Web is http://www.nStor.com.

Seagate Technology, Inc. is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate is the largest independent disc drive and related components company in the world.


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