Applied Magnetics responds to dividend distribution by Read-Rite.

GOLETA, Calif.--(BUSINESS WIRE)--March 4, 1997--Applied Magnetics Corp. (NYSE: APM) released the following statement today in response to a press release today from Read-Rite Corp. (NASDAQ: RDRT) announcing a dividend distribution of preferred shares to holders of the company's common stock:

"We were expecting this action by Read-Rite, and remain committed to our offer and to pursuing all actions related to that offer," said Craig D. Crisman, chief executive officer of Applied Magnetics. "The logic of combining these companies is compelling for stockholders, employees and customers of both companies. We are confident that the stockholders of Read-Rite will recognize the value of our offer and will support it."

Applied Magnetics Corp. (AMC) is a leading independent supplier of magnetic recording disk heads and head stack assemblies for rigid disk drives, the predominant high-capacity data storage device used in computers. AMC supplies thin film, magnetoresistive (MR) and ferrite disk head products in one of the world's most competitive, high-technology businesses. The company commits substantial resources to technology and product development to meet continuous demands for higher performance disk heads.

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