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KAO NAMED WORLD'S LARGEST 3.5 INCH DISKETTE MANUFACTURER

 PLYMOUTH, Mass., May 23 /PRNewswire/ -- Kao Infosystems Company, Plymouth, Mass., announced today that Kao Corporation has been named the world's largest 3.5 inch diskette manufacturer according to a year-long study by leading magnetic media analyst, Larry Lueck, president of Magnetic Media Information Services (MMIS).
 According to study findings released, Kao escalated to the industry's number one leadership position for the first time in its six- year diskette history, based on documented manufacturing data obtained by MMIS during a year-long study of the top 15 global 3.5 inch diskette manufacturers.
 The MMIS findings indicate that at year-end 1992, Kao topped all 3.5 inch diskette manufacturers with an annual worldwide manufacturing volume of 230 million diskettes followed by Sony, Verbatim, Maxell, Fuji, Hanny, and 3M respectively. The study includes a broad range of diskette manufacturers with annual production totals ranging from 70 million diskettes, to Kao's record-high 230 million diskettes.
 TOP 15 MFD FABRICATORS IN 1992 (MILLION/DISKETTES)
 Kao Infosystems 230 Prime Standard 102
 Sony Corporation 216 TDK Corporation 96
 Verbatim/MKC 186 Zi Yuan Group 91
 Hitachi Maxell 184 CIS Technology 82
 Fuji/B&F Microdisk 180 Swire Pacific 78
 Hanny Magnetics 172 Lambda Microdisk 72
 3M Company 140 CMC Magentics 70
 Megamedia Corp. 106
 (Millions of MFDs Made in 1992, MMIS Database data of Jan 1993)
 Commenting on the study results, Peter McGuirk, president and chief executive officer of Kao Infosystems, Inc., said, "Kao's six-year dedication to the highest standards of diskette quality; being totally responsive to our customer's needs; and anticipating global market trends has made Kao today's recognized leader and world's largest manufacturer of 3.5 inch diskettes."
 Kao is the leading supplier of diskettes to the original equipment manufacturer (OEM) industry with customers including the world's leading hardware and software vendors Microsoft, Lotus, Apple and Novell. The company is also the largest supplier to the government sector in North America and a major vendor in the branded products market.


Kao Plant Expansions to Increase Record '92 Levels
 Last month, to meet growing European demands for 3.5 inch diskettes, particularly high-density 2mb diskettes, Kao completed expanding its Barcelona, Spain facility doubling monthly diskette manufacturing capacity from 4 million to 8 million 3.5 inch diskettes. Kao opened the Barcelona facility in May, 1990, and it is one of Kao's four, state-of- the-art, fully-automated disk manufacturing plants worldwide.
 Last fall, Kao began a major 3.5 inch diskette manufacturing expansion program at its Arnprior, Ontario facility. Scheduled for completion in June, Kao's Canadian capacity will increase by more than 160 percent, increasing monthly 3.5 inch production from 2.5 million to 6.5 million diskettes. Kao Infosystems Canada Inc., formerly Kao-Didak, is the only significant diskette vendor to establish a manufacturing presence in Canada.
 In May, 1992, Kao completed a major North American expansion at its Plymouth, Mass. manufacturing facility, making it the single largest diskette plant in North America. The $135 million, 260,000 square-foot facility has fully convertible, state-of-the-art production lines, which are designed to produce standard and high density, as well as new extra- density diskettes. These lines enable Kao to easily alter its manufacturing processes to continuously meet market demands shifting toward higher-capacity 3.5 inch diskettes.
 At the completion of its expansion program in June, Kao will increase its global product capacity from a current level of approximately 400 million diskettes to over 500 million diskettes annually.
 Kao Infosystems Company, headquartered in Plymouth, has become one of the world's largest diskette manufacturers in only six years of operation. Kao's products, including diskettes, data cartridges, and digital audio tapes (DATs) incorporate advanced surface science technology. Kao Infosystems Company is a division of Kao Corporation of America, a wholly-owned subsidiary of Kao Corporation, a $5 billion Japanese conglomerate established in 1887.
 -0- 5/23/93
 /CONTACT: Douglas Campbell, 800-274-5520, ext. 2350; Dorin Thibault, 800-274-5520, ext. 2187, both of Kao Infosystems Company/


CO: Kao Infosystems Company ST: Massachusetts IN: CPR SU:

DJ -- NESU001 -- 1455 05/23/93 11:00 EDT
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Date:May 23, 1993
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