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DIGITAL EQUIPMENT CORPORATION, STORAGE TECHNOLOGY CORPORATION ANNOUNCE JOINT VENTURE TO PRODUCE INDUCTIVE AND MAGNETORESISTIVE DISK HEADS

DIGITAL EQUIPMENT CORPORATION, STORAGE TECHNOLOGY CORPORATION ANNOUNCE
 JOINT VENTURE TO PRODUCE INDUCTIVE AND MAGNETORESISTIVE DISK HEADS
 LOUISVILLE, Colo., Aug. 27 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) and Storage Technology Corporation (NYSE: STK) (StorageTek) today announced the signing of an agreement that establishes a new company intended to produce and sell inductive and magnetoresistive thin film heads for disk drives. The new company, Rocky Mountain Magnetics, Inc., will be a joint venture in which Digital will hold the controlling interest of 81 percent while StorageTek will hold a 19 percent share. The company will be run with its own profit and loss responsibility.
 Approximately 250 former StorageTek employees will join Rocky Mountain Magnetics, which will be based in Louisville, Colo.
 "This agreement with StorageTek provides Digital with additional core technology and manufacturing support that is immediately applicable to our continuing rapid growth in both the thin film head and disk drive businesses," said Charles F. Christ, vice president of Digital's SME (Small and Medium Enterprise)/Departmental Systems and Software.
 According to Christ, the formation of Rocky Mountain Magnetics enables Digital to expand the capabilities of its successful Shrewsbury, Mass.-based thin-film heads business and to meet the high- volume requirements of its OEM (original equipment manufacturer) and end-user disk business. "With the development and manufacturing capabilities of both Rocky Mountain Magnetics and Digital's Shrewsbury operation, we will provide leading-edge thin-film heads and disk drives for our customers today and into the future," Christ said.
 Tom Gooch, StorageTek executive vice president of operations, said, "StorageTek is pleased to have this opportunity to see its magnetoresistive technology brought to market. We believe that partnering with Digital will optimize this process for ourselves and our disk drive suppliers," Gooch continued. "In our view, magnetoresistive technology is crucial to the future of the high- performance disk drive industry. The timely availability of competitive, high-performance disk drives is, in turn, crucial to StorageTek's future product strategies."
 Initially, Rocky Mountain Magnetics will manufacture and sell inductive thin-film heads for OEMs and for Digital's OEM and end-user disk drives. The company will also continue development of magnetoresistive head technology, with availability of samples to customers scheduled for October of this year.
 Magnetoresistive technology is emerging in leading-edge disk products, and is widely considered to be a key factor that will allow magnetic storage to remain the dominant data storage medium in the computer industry in this decade. The technology offers performance, capacity and size advantages in both heads and disk drives. Magnetoresistive technology has been used in tape heads for several years. General Manager Announced
 Today Digital Equipment Corporation and Storage Technology Corporation also announced the appointment of Frank B. Shelledy as general manager of Rocky Mountain Magnetics. Former director of tape head operations and disk head development for StorageTek, Shelledy served in various management and senior engineering positions with IBM Corporation for twenty years before joining StorageTek.
 Storage Technology Corporation designs, manufactures, markets and services worldwide information storage and retrieval subsystems for high-performance and midrange computer systems, and enterprise computer networks.
 Digital Equipment Corporation, headquartered in Maynard, is the leading worldwide supplier of networked computer systems, software, and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions - from desktop to data center - in open information environments.
 NOTE TO EDITORS: Tthe Digital logo is a trademark of Digital Equipment Corporation. StorageTek is a trademark of Storage Technology Corporation.
 -0- 8/27/92
 CONTACT: Gloria Bates, Mass Storage Group, Digital Equipment Corporation, 508-841-6544; or David Reid, Storage Technology Corporation, 303-673-4815/
 (DEC STK) CO: Digital Equipment Corporation; Storage Technology Corporation ST: Massachusetts IN: CPR SU: JVN


CN -- NE012 -- 3825 08/27/92 09:50 EDT
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Date:Aug 27, 1992
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