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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Winegrower who wrote (63477)	9/30/1999 2:55:00 PM
From: kathyh	Respond to of 90042

hi john... looking at hdd, interesting, but i am not sure what a tracking stock is... can you enlighten me on this one... thanks... Related Quotes DSS HDD 14 1/8 7 3/16 +1/4 +3/16 delayed 20 mins - disclaimer Thursday August 5, 3:01 am Eastern Time Company Press Release New Quantum Tracking Stocks Begin Trading 'Regular Way' on NYSE Quantum is First Silicon Valley Company to Issue Tracking Stock MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 4, 1999--Quantum Corporation (NYSE: DSS - news, HDD - news) today announced that the company's two tracking stocks began trading ''regular way'' this morning on the New York Stock Exchange under the ticker symbols DSS and HDD. The two securities track the performance of the company's two major businesses -- the DLT and Storage Systems Group (DSS) and the Hard Disk Drive Group (HDD). The company's original common stock, QNTM, was retired on NASDAQ at the close of trading yesterday. ''We are very pleased to have completed our implementation of tracking stock,'' said Richard Clemmer, Quantum's chief financial officer. ''Moving forward, investors in Quantum will be able to separately value our Hard Disk Drive business and the DLT and Storage Systems business, taking advantage of the distinct investment opportunities represented by each one.'' Today marks Quantum's first day of regular trading on the New York Stock Exchange, a move that was made to support the company's transition to tracking stock. ''Most tracking stocks are traded on the NYSE,'' said Clemmer. ''This exchange has a proven track record of maintaining an orderly market, particularly around these securities. We believe investors will be well-served by this move.'' With the retirement of QNTM, Quantum shareholders will receive one-half share of HDD and one share of DSS for each share of QNTM held. Quantum's 7% Convertible Subordinated Notes due 2004 will become convertible at the option of the holder into 21.587 shares of DSS and 10.793 shares of HDD, in lieu of 21.587 shares of QNTM, per $1000 of principal amount of Notes. Cost Allocation Basis Shareholders of QNTM should allocate their cost based upon the relative value of DSS and HDD, using the opening price of 19 9/16 for DSS and 7 1/8 for HDD on the first day of regular way trading. Shareholders are encouraged to consult with their tax advisor before making a final determination of the allocation of their cost basis. Shareholders are also encouraged to visit Quantum's investor center web site at www.quantum.com/quantum/ic/investor_center.htm for more detailed information on the allocation of cost basis. About Quantum Founded in 1980, Quantum Corporation (www.quantum.com) is a diversified mass storage company committed to achieving customer satisfaction through high quality and reliability. Quantum is the highest volume global supplier of hard disk drives for personal computers, a leading supplier of high capacity hard drives and the worldwide revenue leader among all classes of tape drives. Quantum sells a broad range of storage products to OEM and distribution customers worldwide. Quantum's sales for the fiscal year ending March 1999 were $4.9 billion. Note to Editors: Quantum and the Quantum logo are trademarks of Quantum Corp., registered in the United States and other countries. -------------------------------------------------------------------------------- Contact: Quantum Public Relations Holly Campbell, 408/894-5058 holly.campbell@quantum.com or Quantum Investor Relations Renee Budig, 408/894-5563 renee.budig@quantum.com