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ROCKWELL ANNOUNCES PLANS TO PURCHASEWESTERN DIGITAL SILICON WAFER FABRICATION FACILITY

 SEAL BEACH, Calif., Aug. 9 /PRNewswire/ -- Rockwell International Corp. (NYSE: ROK) announced today the signing of a letter of intent to purchase Western Digital Corp.'s Irvine, Calif., silicon wafer fabrication facility.
 The proposed purchase price is approximately $115 million plus assumption by Rockwell of equipment leases associated with the facility. In addition, the companies have agreed to negotiate a three-year supply contract for the continued delivery of processed silicon wafers to Western Digital.
 The sale is subject to regulatory approvals and normal terms of closing.
 "This acquisition is an important strategic statement for Rockwell," said Donald R. Beall, Rockwell chairman and chief executive officer. "It represents a continuation of significant levels of investment and commitment to expanding our commercial electronics business."
 Beall added: "While we intend to remain one of the United States' leading defense systems suppliers and a key contractor to NASA, clearly our highest growth areas are in our commercial businesses, including avionics, industrial automation, telecommunications, automotive components and graphics."
 The Western Digital wafer fabrication facility has been operational for more than two years and is capable of running state-of-the-art wafer fabrication processes.
 "This facility will take us into the 21st century," said Lanny Ross, president of Rockwell's Telecommunications business segment. "This purchase comes at a time when the world supply of advanced technology silicon is seriously lagging demand. It will complement our present, outstanding wafer fabrication facilities in Newport Beach."
 Rockwell's Telecommunications business segment includes three principal businesses: the Digital Communications Division (DCD), the Switching Systems Division (SSD) and the Microelectronics Technology Center (MTC). DCD, with headquarters in Newport Beach, Calif., has been a pioneer in modem technology for more than 30 years. Today it is a world leader in fax and data modem components and has entered the market for wireless communications chip sets, modems, etc., which rely on Rockwell's most advanced gallium arsenide process offered by the company's MTC.
 Rockwell International is a multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses.
 -0- 8/9/93
 /CONTACT: Bill Blanning of Rockwell International, 310-797-5593/
 (ROK)


CO: Rockwell International Corp.; Western Digital Corp. ST: California IN: ARO SU: TNM

JB -- LA016 -- 0797 08/09/93 14:01 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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