Class Action Suit Filed Against Quantum Corporation and its Officers and Directors Alleging Misrepresentations and Insider Trading.

SAN DIEGO--(BUSINESS WIRE)--Sept. 18, 1996--A class action has been commenced in the United States District Court for the Northern District of California by plaintiff Howard Gunty Profit Sharing on behalf of purchasers of Quantum Corporation ("Quantum") common stock during the period February 26, 1996 to June 13, 1996 (the "Class Period").

The complaint charges Quantum, which manufactures and sells disk drives and related data storage equipment, and certain of its officers and directors with violations of the federal securities laws. During the Class Period, the defendants artificially inflated Quantum stock to as high as $26-1/8 per share based on representations that Quantum's Desktop and Portable Storage Group had successfully introduced a new line of 5.25 inch "Bigfoot" disk drives which were enjoying an outstanding response from customers and generating strong demand which would contribute to Quantum achieving substantial revenue and earnings gains throughout Fiscal 1997, to end March 31, 1997.

However, just a few months later, Quantum revealed that demand for its "Bigfoot" drives was, in fact, soft and sales of that product line were well below expectations, leading to excess inventory and price cutting which would adversely impact Quantum's Fiscal 1997 results. Quantum's stock immediately collapsed to $15-3/8 per share and continued to fall to as low as $10-7/8, as the market digested this bad news.

However, before the truth about the failure of Quantum's "Bigfoot" product line came out and Quantum's stock collapsed, seven Quantum insiders had sold over 265,543 shares of their Quantum stock at artificially inflated prices as high as $25-5/8 per share, pocketing over $6.5 million in illegal insider trading proceeds. Several of Quantum's insiders, including Quantum's CEO and the heads of Quantum's Desktop and Portable Storage Operations and its Tape Storage Operations, sold 99%-100% of their Quantum stock.

Plaintiff who has sued seeks to recover damages on behalf of all purchasers of Quantum common stock during the Class Period (the "Class"). It is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion.

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach of Milberg Weiss at 800/348-6192.

CONTACT: Milberg Weiss

William Lerach, 800/348-6192