SEAGATE UNDERTAKES MULTI-MILLION DOLLAR INVESTMENT IN U.S., ASIAN COMPONENT
OPERATIONS TO MEET GROWING WORLDWIDE DEMAND FOR DISC DRIVES

Strong commitment to vertical integration well-positions Seagate to
maintain industry leadership in core component technologies and continue
to satisfy industry demand

SCOTTS VALLEY, CALIF. -- July 10, 1995 -- 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
 
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