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KOMAG SIGNS $60-MILLION CREDIT LINE TO SUPPORT FUTURE GROWTH OPPORTUNITIES

 MILPITAS, Calif., April 26 /PRNewswire/ -- Komag Inc. (NASDAQ: KMAG), a leading independent supplier of thin-film components for high-performance Winchester drives, today announced the signing of a $60-million syndicated, unsecured line of credit. First Interstate Bank of California served as the lead bank for the syndicate. The other participating banks include: Comerica Bank-California, ABN AMRO Bank, N.V., Union Bank, Industrial Bank of Japan Ltd., and Standard Chartered Bank. This new line of credit brings the company's total unsecured credit facilities to $100 million. To date, the company has drawn down $20 million under these facilities.
 The new $60-million loan is structured as a revolving credit line with a two-year term. After one year the company may extend, subject to the approval of the banks, the term of the credit facility for an additional year, thus perpetuating its two-year term. This renewal pattern may continue for an indefinite period of time.
 "The new line of credit provides us with an extra measure of flexibility to fund Komag's growth," said Johnson. "It is extremely important that we maintain adequate cash resources for working capital and capital expenditures. This is particularly important as we continue to expand our operations to serve the fast-growing markets for advanced thin-film media and thin-film head products," he said. As previously announced, the company expects production from its first disk sputtering line to start at its recently completed 220,000-square-foot facility in Malaysia in mid-1993.
 Komag is the only independent volume supplier of thin-film disks and thin-film heads, two critical components used in today's advanced Winchester disk drives. Winchester disk drives are the primary storage device used by computers.
 Founded in 1983, Komag and its consolidated subsidiaries maintain 870,000 square feet of manufacturing and administrative space in California and Malaysia. Komag also operates a technical support facility in Singapore. The company and its consolidated subsidiaries employ approximately 3,100 people. Komag also manufactures and sells thin-film disk products through its unconsolidated joint venture, Asahi Komag Co. Ltd., which is among the top three media producers in Japan.
 -0- 4/26/93
 /CONTACT: David H. Allen or William L. Potts Jr. of Komag, 408-946-2300/
 (KMAG)


CO: Komag Inc. ST: California IN: CPR SU:

GT-SG -- SJ005 -- 0951 04/26/93 16:31 EDT
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Publication:PR Newswire
Date:Apr 26, 1993
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