Quantum Sells CD-ROM Business to Excel Computer and Places Heavier Emphasis on Growing Snap Division; Former Meridian Data CD-ROM Product Line Sold.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 10, 2000

Quantum Corporation's DLT and Storage Systems Group (NYSE:DSS) announced today that it has sold its CD-ROM Networking Systems business, obtained from the recent Meridian Data acquisition, to Excel Computer for an immaterial amount.

Strategically, this allows Quantum to apply more resources to its growing Snap! Server(TM) product line. The Snap Division, created from the Meridian acquisition, has quickly grown into the dominant market leader for network attached storage (NAS) products.

Excel Computer will acquire from Quantum the CD Net Universal product line, which includes the CD Net Universal XP Server, the CD Net Universal 10/100 Server, and the CD Net NetROM Subsystems products. As a result, Quantum will reassign freed up resources to expand the Snap Server product line and capitalize on the expanding NAS market opportunity expected to reach $6.7 billion by 2003.

"It was a strategic decision to exit the CD-ROM business so that we could focus more on growing our server appliances business and especially our complete line of Snap Server products," said Anders Axelsson, vice president and general manager for the Quantum Snap Division. "It was also important for us to choose a buyer with a great reputation to ensure that our existing customers' requests are handled in the best possible manner."

The CD Net Universal product line will complement Excel's expansive product offerings. Excel specializes in manufacturing and distributing a wide variety of CD-ROM towers, servers, and jukeboxes as well as RAID Arrays, network attached storage products, and rack mount enterprise servers. Customer sales and support for the CD Net Universal product line is immediately available through Excel by calling 800/995-1014.

"The acquisition of the original Meridian Data CD-ROM product line strengthens our own product mix," said Steve Crandell, president of Excel Computer. "CD Net customers can rest easy that we will treat them as our own and offer them the best possible service, support, and products available in the industry."

About Excel Computer

Excel Computer (www.excelcdrom.com) manufacturers and distributes a wide variety of CD-ROM Towers, Servers, Jukeboxes, RAID Arrays, Network Attached Storage, and Rack Mount Enterprise Servers. All systems are built to customer specification in the company's Dallas facility. Excel Computer is committed to remaining in step with the rapidly changing data storage marketplace. The company maintains multiple vendor alliances, including Axis Communications, Microtest, Smart Storage, SciNet, Kodak, Plextor, Nakamichi, and Pioneer.

About Quantum

Founded in 1980, Quantum Corporation (www.quantum.com) is the world's leading storage supplier in six of the seven markets it serves: desktop hard disk drives, tape drives, network attached storage (NAS) appliances, solid state systems and hard disk drives for the emerging personal video recorder (PVR) market, and DLTtape automation systems. Quantum is also a leading supplier of high-end hard disk drives.

In 1999 Quantum became the first Silicon Valley company to issue tracking stock, replacing its existing common stock with the ticker symbols DSS and HDD, which track the separate performance of the company's DLT and Storage Systems and Hard Disk Drive businesses. Both stocks are traded on the New York Stock Exchange. Selling its products through OEM and distribution channels worldwide, sales for the fiscal year ending March 1999 were $1.3 billion for Quantum's DLT and Storage Systems Group and $3.6 billion for Quantum's Hard Disk Drive Group.

Quantum Corp., 500 McCarthy Blvd., Milpitas, CA 95035, [phone], www.quantum.com.

The foregoing statements regarding the network attached storage market, trends, future growth as well as the potential market acceptance and impact of the new products are forward looking statements and actual results could vary. Factors which could affect actual results include the ability to successfully manufacture and distribute new products at sufficient volume, quality and reasonable cost, the timing of new product introductions, the success of competing products and technologies, and the significant uncertainty of market acceptance of new products.

Note to Editors: Quantum and the Snap! Server are trademarks of Quantum Corporation, registered in the United States and other countries. The Quantum logo is a trademark of Quantum Corporation. All other marks are trademarks of their respective companies.