Calluna Technology and Compaq Computer Join to Promote PC Card Hard Drive.

New Marketing Program is Designed to Promote the Use of Calluna's 260MB Type II Callunacard PC Card Hard Disk with the Compaq Aero 8000

Handheld PC 

MORGAN HILL, Calif.--(BUSINESS WIRE)--Aug. 18, 1999--

Calluna Technology Ltd. today announced that it is now participating in a joint promotion with Compaq Computer Corporation. The companies are promoting the use of Calluna's 260MB Type II PC Card hard disk drive with the Compaq Aero 8000 Handheld PC.

Under the terms of this new promotion, Calluna Technology is supplying Compaq with plastic replicas of its Type II 260MB Callunacard as a PCMCIA socket protector for the Aero 8000. The replicas include information about the Callunacard along with instructions about where it can be purchased. The actual fulfillment of the drives for North American customers is being handled by MobilePlanet in Los Angeles, California.

"We are, of course, very pleased to be participating in a joint promotion with an acknowledged worldwide leader like Compaq Computer," said Bruce Serpa, Vice President of North American Sales for Calluna Technology Inc. "We believe that our 260MB Callunacard is an ideal complement to the Aero 8000, and are very excited about our collective prospects for success."

"The Callunacard easily integrates with the Compaq Aero 8000, serving to enhance the value of the product by providing our customers with a state-of-the-art, affordable way to add incremental mass storage," said Ben Williams, Director, Displays & Peripherals Marketing, Compaq North America. "And, integrating the Callunacard in the Aero 8000 is easy through the PC Card slot."

A mere 5mm thick, Calluna Technology's 260MB Callunacard is a Type II PC Card hard disk drive that is based on the same design architecture as Calluna's 1GB Type III model. Specifically, it uses the identical magnetic recording technology, and incorporates the same recording head and the same disk as the Type III drive. An innovative mechanical and electronics design uniquely enables 260MB of data to be stored on just one platter, using one head within a format just larger than a credit card. The MSRP for the 260MB Callunacard is $299.

The Compaq Aero 8000 Handheld PC Professional is the world's most secure, mobile and easy-to-use Handheld PC. The first product of its kind to offer built-in Smart Card technology for added security, the Aero 8000 weighs just 2.95 lbs., and yet includes a 10-inch SVGA (800 x 600) 256 color screen, and a large keyboard that offers 18 mm of spacing between keys. The powerful Aero 8000 also features a fast 64-bit Hitachi SH4 processor, Instant-On functionality, standard battery life of up to 10 (1) hours, and a 56K V.90 modem (2). It also includes a TrackPad touchpad for easy point-and-click operation, supports voice recording for the instant capturing of ideas or messages, and offers the same amount of memory typically used on desktop and notebook PCs.

For more information, contact Calluna Technology in the U.S. by phone at [phone], 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 1.8" 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 1.8-inch PC Card disk drives, it has consistently racked up industry "firsts" with the introduction of ever-higher areal densities. The company has added to its storage technologies product range with the introduction of Hardwall(R) Technology, a hardware anti-virus, anti-hacker, anti-system corruption family of products. Featuring an independent micro-processor, Hardwall Technology products offer permanent protection against three of the major sources of data corruption and network administration support costs.

Calluna plc, the parent company of Calluna Technology, has around 100 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 world-wide operations.

------------------ (1) Battery life will vary based on an estimated typical use pattern of an average user, the configuration of the computer and the usage pattern of the individual user. Use of some PC Cards may significantly decrease battery life.

(2) 56K V.090 modems are designed only to allow faster downloads from K56flex or v.90 compliant digital sources. Maximum achievable download transmissions rates are currently unknown, may not reach 56 kilo bits per second (kbps) and will vary with line conditions.