Calluna Technology Announces the World's First 260MB Type II PC Card Hard Disk Drive.

NEW YORK--(BUSINESS WIRE)--June 22, 1999--

Latest Addition to the Callunacard(TM) Line is Only

5mm Thick & Features the Identical Magnetic Recording

Technology Used in Calluna's 1GB Type III Card 

Calluna Technology Ltd. today announces at PC EXPO the world's first 260MB Type II PC Card hard disk drive. At only 5mm, the disk drive is less than half the thickness of all current Type III PC Card disk drives from Calluna.

This new Type II Callunacard is based on the same magnetic recording technology as used in Calluna's 1GB Type III model. Specifically, it uses the same recording head and the same disk as the Type III drive. An innovative new mechanical and electronics design enables 260MB of data to be stored on just one disk, using one head within an overall format just larger than a credit card.

David Ruxton, Director of Product Marketing for Calluna Technology Ltd., said: "The new Type II Callunacard extends the range of applications for our miniature disk drives into mobile, handheld products where the existing Type III drives are simply too thick to fit. The 260MB capacity point also fills the gap between our 520MB Type III Callunacard and the middle to high end of Flash memory cards where prices are too high for the majority of PC Card users. Laptops are becoming slimmer and lighter, making them much easier to carry and therefore a more viable mobile computer. Users need mobile, removable storage without unwanted extras such as cables, boxes or power supplies. The Type II Callunacard meets this requirement."

In response to this increasing demand for higher capacity storage from mobile devices, Calluna also announced that it plans additional developments with this exciting new technology. The company is in fact already looking at quadrupling storage capacity in the same Type II format within the next 12 months.

The new Type II 260MB Callunacard sells for a suggested retail price of just $299 and will be available from a wide variety of computer retail and mail order outlets in the second half of 1999.

For more information, contact Calluna Technology in the U.S. by phone at 408/778-6563, or visit the company's Web-site at http://www.callunacard.com.

About Calluna Technology Ltd.

Calluna Technology Limited, a storage technology company, is the leading global supplier of removable PCMCIA PC Card1.8" hard disk drives with storage capacities ranging from 260MB to 1040MB.

The company's Callunacard products are used in a wide variety of notebook, hand-held computer, digital camera and industrial applications throughout the world.

Since Calluna was founded in November 1991, initially concentrating on PC Card hard disk drives, it has consistently racked up industry "firsts" with the introduction of ever-higher areal densities. The company has added to its storage technology product range with the introduction of Hardwall(R) Technology, a hardware anti-virus, anti-hacker, anti-system corruption family of products including PC BODYGUARD. Featuring the patented WMR(R) (Write Many Recoverable(R)) technology, Hardwall products offer permanent protection against three of the major sources of data corruption and reduce network administration support costs.

Calluna plc, the parent company of Calluna Technology, has around 130 employees and its headquarters, design team and manufacturing are located in Glenrothes, Scotland, with a North American sales office based in Morgan Hill, California. Calluna is an ISO9001 registered company, emphasizing its commitment to quality in manufacturing and throughout its worldwide operations.