I don't see how the WDC-IBM deal hurts RDRT.
SAN JOSE, Calif.--(BUSINESS WIRE)--May 4, 1998--Western Digital and IBM
announced today plan to enter into a broad-based hard disk drive
component supply and technology licensing agreement.
The anticipated agreement would include a wide range of options
involving the design and manufacture of desktop hard disk drives. IBM
intends to supply Western Digital with its leading areal-density giant
magnetoresistive (GMR) heads and other components for WD's manufacture
of desktop hard disk drives. At the outset, Western Digital would use
IBM technology and designs to integrate simultaneously IBM's GMR heads
and other components into WD's future hard disk drives.
Western Digital expects to introduce desktop hard disk drives based on
IBM products and designs in the first half of calendar 1999. Financial
terms of the letter of intent will not be disclosed. Terms of the
relationship will become effective upon completion of a definitive
agreement.
Chuck Haggerty, chairman, president and chief executive officer of
Western Digital stated: "Western Digital plans to engage in an
outstanding long-term relationship with IBM and its unrivaled R&D
resources -- an ideal alignment as we address the tremendous
opportunities and technical challenges in the data storage industry. The
strategic relationship is planned to leverage WD's high-volume
manufacturing and design efficiency, its customer relationships and
market savvy in the challenging desktop hard disk drive business."
Jim Vanderslice, vice president and group executive, Data Technology
Group, IBM, said: "We're very pleased about expanding our current
relationship with Western Digital. This is a stellar endorsement of IBM
disk drive components, particularly our industry-leading GMR head
technology. Since we began our OEM head program two years ago, it has
become a major engine of growth within IBM. The extension of this
relationship with Western Digital is a testimony to the competitive
advantages that can be realized using IBM head technology for high
volume desktop disk drives."
Kathy Braun, president and chief operating officer of Western Digital's
Personal Storage Division, added: "We're very excited about the prospect
of teaming with IBM in a long-term relationship and look forward to
delivering an unparalleled roadmap of products to WD's desktop
customers, incorporating IBM's leading GMR head technology. Access to
their technology will enable our people to leverage a broadened base of
resources to address a variety of customer needs more effectively."
Western Digital Corporation is a leader in information storage products
and services. The company designs and manufactures hard drives for
personal and enterprise-wide computing, and markets them to leading
systems manufacturers and selected resellers under the Western Digital
brand name. Western Digital is the first Fortune 500, multinational
company to have been awarded company-wide ISO 9001 registration, linking
all WD organizations with a consistent global standard for quality
processes. The company was founded in 1970 and has long been noted for
its storage and end-market systems-level design knowledge. The company's
World Wide Web home page can be found at westerndigital.
IBM Storage Systems Division (SSD) offers customers worldwide a
comprehensive range of industry-leading software and hardware storage
products. These are offered through IBM, as well as a large network of
IBM Business Partners and Original Equipment Manufacturers (OEMs).
Headquartered in San Jose, Calif., the division has worldwide
responsibility for the development, manufacturing, marketing and field
support for its storage products. IBM SSD is a division of IBM
Corporation headquartered in Armonk, NY.
For more information about IBM storage solutions, go to the World Wide
Web at ibm.com.
This release contains forward-looking statements based on current
management expectations, including statements related to the proposed
broad-based hard disk drive component supply and technology licensing
agreement with IBM, the range of options to be included in the
agreement, the introduction of desktop hard drives based on the
technology transferred pursuant to the agreement, future opportunities
and challenges in the data storage industry, the competitive advantages
of IBM technology and the effect of the agreement on Western Digital's
future products and technology. Actual results may differ materially as
a result of several factors, including: when and if a definitive
agreement is entered into; successful transfer of the technology
pursuant to the agreement and successful incorporation of such
technology in Western Digital's future products; future technology
developments and other competitive factors in the hard drive industry;
business conditions and growth in the !
personal computing industry; and other factors discussed in Western
Digital's form 10-K for the year ended June 28, 1997, its recent form
10-Qs, and its other SEC filings. Neither Western Digital nor IBM
undertakes any obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of such
statements.
Note to Editors: IBM is a registered trademark of International Business
Machines Corporation. All other trademarks are property of their
respective owners.
CONTACT: IBM Storage Systems Division
Kevin McKee, 408/256-7548
mckeek@us.ibm.com
or
Western Digital
Robert Blair (Investors), 714/932-7834
Brenda Bennett (Media), 714/932-6006
bob.blair@wdc.com
brenda.bennett@wdc.com |
