Seagate Increases Worldwide Manufacturing Capacity with Expansion of Thailand Production Facilities; Additional Plant in Northeast Brings Increased Growth and Opportunity to the Region.

SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--April 8, 1996--Seagate Technology, Inc. (NYSE:SEG) today announced it is increasing its disc drive component manufacturing space in Nakhon Ratchasima (Korat), Thailand by more than 60 percent with the construction of a new facility there. Work has begun on a new 129,000 square foot building at the company's 44.8 acre site in northeast Thailand, approximately 140 miles from Bangkok. The new facility is expected to begin manufacturing Head Gimbal Assemblies (HGAs) for disc drives in December 1996, and at full capacity, should double Korat's HGA production capability.

Seagate first announced plans in August 1995 for its initial Korat facility, a 213,000 square foot HGA plant which will be completed later this month, and will employ 6,000 local people. The new facility announced today could create jobs for an additional 6,000 people from Korat and surrounding provinces.

"Our investment in the Korat area represents more than US$70 million in land, facilities and equipment, and we have been very impressed with the local community's enthusiasm and support for our operations here," said Dr. Brendan Hegarty, executive vice president and chief operating officer of Seagate's Recording Head Group. "Seagate is helping to bring jobs and economic development to the people of the region, and we have received a warm reception from local education and government officials."

Seagate presently employs over 28,000 people at five disc drive and related component manufacturing plants in central Thailand. The company is one of the largest employers in Thailand and has aided the government's efforts to encourage job creation in regions outside the highly developed Bangkok area.

"Seagate's continued expansion in Korat is beneficial to the company as well as the Kingdom of Thailand," said Dr. Pornchai Piemsomboom, vice president and general manager of Seagate's Thailand Recording Head operation. "We will gain increased access to the sizable, quality workforce in the Northeast and local communities can take advantage of good, high-technology jobs that do not require relocation to Bangkok. These upcountry jobs will help to reduce the problems of family dislocation and `brain drain' in the Northeast."

Seagate Technology, Inc. is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate is the largest independent disc drive and related components company in the world. Seagate's home page address on the World Wide Web is http://www.seagate.com.

CONTACT: Seagate Technology Inc, Scotts Valley

Gina Katz, 408/439-2691

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Elena Rhodes, 408/439-2880

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