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KOMAG SIGNS LINES OF CREDIT FOR $40 MILLION TO SUPPORT FUTURE GROWTH OPPORTUNITIES

 KOMAG SIGNS LINES OF CREDIT FOR $40 MILLION
 TO SUPPORT FUTURE GROWTH OPPORTUNITIES
 MILPITAS, Calif., March 2 /PRNewswire/ -- Komag Inc. (NASDAQ: KMAG), a leading independent supplier of thin-film components for high-performance Winchester drives, today announced the recent signing of two separate $20 million senior unsecured lines of credit with First Interstate Bank of California and Plaza Bank of Commerce, both located in San Jose, Calif.
 Both loan agreements provide Komag with revolving credit facilities during the first two years. After or at any time during the first two years, the First Interstate and Plaza lines of credit may be converted into term debt with final maturities due in 1996 and 1997, respectively. "The terms and conditions of both lines of credit are substantially similar and provide flexibility to match the company's expansion plans," noted Stephen C. Johnson, Komag Inc.'s president and chief executive officer. The $20 million line of credit with First Interstate replaces a previously unused $20 million line of credit with this bank that expired in December of last year.
 "These lines of credit provide us with an extra measure of flexibility that will assist Komag's growth," commented Johnson. "It is extremely important to us to maintain our strong balance sheet. This is particularly important as we enter a multi-year period of expansion in both our thin-film media and thin-film head operations," he continued. As previously announced, Komag will add two sputtering lines in its highly automated 103,000 square-foot factory in San Jose in 1992. The company recently began construction of a 220,000 square- foot disk manufacturing facility in Malaysia to meet its future growth requirements.
 In a separate press release today, Komag also reported the completion of its previously announced thin-film head joint venture with Asahi Glass. Under the joint venture agreement, Komag contributed to the joint venture both the stock of Dastek Inc., its recently acquired wholly owned subsidiary, and the assets of its existing thin-film head development program. "We plan to fund Dastek's future operations with Asahi's $60 million contribution for its minority interest in this new joint venture," stated Johnson. At the joint venture closing on Feb. 28, 1992, Asahi contributed $36 million in cash and two discounted notes with principal and accrued interest payable in two installments of $12 million each on Dec. 31, 1992 and 1993.
 The products of Komag and Dastek address the fast growing high- capacity, high-performance segment of the Winchester disk drive market. Winchester disk drives are widely used in a broad range of computer applications from mainframes to portable computers. Komag is the leading supplier of media to this market segment and manufactures the highest density disks commercially available for the 5 1/4-, 3 1/2- and 2 1/2-inch form factors. Dastek is one of the three largest independent thin-film head suppliers to the merchant market.
 Founded in 1983, Komag and its two consolidated subsidiaries (Komag Material Technology Inc. and Dastek Inc.) maintain 610,000 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 2,500 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. The company is traded on the NASDAQ over-the-counter market under the symbol KMAG.
 -0- 3/2/92
 /CONTACT: David H. Allen or William L. Potts, Jr., of Komag Inc., 408-946-2300; or John Trifari of John Trifari Public Relations, 415-349-9812, for Komag Inc./
 (KMAG) CO: Komag, Inc. ST: California IN: CPR SU:


DG -- SJ005 -- 4125 03/02/92 16:05 EST
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Publication:PR Newswire
Date:Mar 2, 1992
Words:611
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