StorageTek reaffirms plans to merge with Network Systems Corp.

LOUISVILLE, Colo.--(BUSINESS WIRE)--Dec. 30, 1994--Storage Technology Corp. (NYSE:STK) Friday reaffirmed its intention to complete the announced merger with Network Systems Corp. (NASDAQ:NSCO).

Earlier today, Network Systems announced that it will take actions expected to result in a charge against earnings of up to $8 million, for the fourth quarter of 1994, and that it expects earnings to be lower than anticipated for the fourth quarter of 1994.

Ryal R. Poppa, StorageTek chairman, president and chief executive officer, said, "We are aware of this proposed action by Network Systems and view it as a demonstration of Network Systems' aggressive response to the issues of the marketplace.

"Naturally, we are disappointed with the announcement of lowered earnings, but we believe that the products of Network Systems -- present, announced and planned for introduction -- provide an excellent opportunity for StorageTek to accelerate our plans to become the leader in storage management for enterprisewide networks."

Storage Technology Corp. designs, manufactures, markets and services, worldwide, information storage and retrieval subsystems for enterprisewide computer systems and networks. The company reported revenue of $1.4 billion in its last fiscal year.

CONTACT: Storage Technology Corp., Louisville

David Reid, 303/673-4815