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Technology Stocks : SYQUEST -- Ignore unavailable to you. Want to Upgrade?

To: Dale Stempson who wrote (5199)	1/9/1998 2:23:00 PM
From: Jack Sman	Read Replies (1) \| Respond to of 7685

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 9, 1998--SyQuest Technology Inc. (Nasdaq:SYQT) Friday announced that it has formed a long-term partnership with recording-head manufacturer SAE to supply heads for the company's family of rigid removable cartridge products. Under the terms of the agreement, SAE will be the main supplier of advanced recording heads for SyQuest's SparQ drive, as well as the award-winning SyJet drive. SAE will provide volume production of the recording heads for a minimum period of three years. They will also supply head stack assemblies (HSA) for all SyQuest drives, including SparQ and the recently announced 4.7 gigabyte Quest product. The agreement also calls for SAE to expand its current equity position in SyQuest as a partial form of compensation. "This agreement with SAE is significant in many ways," said Ed Marinaro, SyQuest chairman. "First, it allows us to maintain the stream of vital parts to our existing drives; second, it provides the company with a parts sourcing cost reduction path that will directly affect our bottom line." About SAE SAE, manufacturer of DMIG, TFI and MR recording heads, was founded in 1980. SAE was acquired by TDK in 1987 and now operates as a wholly owned subsidiary, with headquarters in Hong Kong and seven manufacturing sites in the People's Republic of China and Thailand. About SyQuest Based in Fremont, SyQuest Technology invented the high performance cartridge category. Since 1982, the company has shipped more than 17 million cartridges that people use to expand their ideas and creations. SyQuest is publicly traded on the Nasdaq National Market System. This news release contains forward-looking statements that involve risks and uncertainties, including competition in the marketplace for the company's products, and other risks detailed from time to time in the Securities and Exchange Commission reports filed by SyQuest, including its most recent reports on Forms 8K, 10K and 10Q. Note to Editors: SyQuest is a registered trademark and the SyQuest logo, SyJet, SparQ and Quest are trademarks of SyQuest Technology Inc. All other brands or trade names are the property of their respective companies. CONTACT: SyQuest Technology Inc. Bob Corey, 510/226-4000 or Miller/Shandwick Technologies Anthony Sanzio, 310/203-0550 * end of story *