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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: shane forbes who wrote (3212)	5/4/1998 6:02:00 PM
From: T Bowl	Read Replies (2) \| Respond to of 9256

Quick Highlights from the WDC CC: - broad based technology licensing and component supply agreement. This includes heads, HSAs, silicon, firmware, etc. - desktop biz will gain special access to GMR heads and technologies simultaneous with IBMs development of these platforms. - does not pertain to all desktop designs of the future. - agreement does NOT preclude other head suppliers from competing on future NON-IBM desktop pgms at WD. They can compete on all of our ESG pgms. - media side is biz as usual with blend of WD internal supply and our current partners. - IBM supplied 50% of MR heads in MarQ98. That share could increase if relationship is successful - WD to continue development efforts on other platforms such as sub 0 DD. - IBM will NOT make WD DDs. WD will make them and market them as Caviar only - not an exclusive agreement, but hard to believe IBM will do it with many people due to anticipated volume were looking for - Allows IBM to leverage a significant investment in DD technology - will allow us to be very competitve - even increase share, certainly more profitable - Sub 0 PC DD will be developed by WD in 3.5" form factor. MR, but might use GMR in next gens..Areal density is best way to reduce costs usually - does not change anticipated ramps of pgms in 98. Will push ahead ramp of first GMR DD in 1H99. Does not change short term plans - agreement allows pass-thru of technology to other suppliers except for heads. - IBM has the cost and capacity necessary to satisfy business model - will not supply media to IBM! - will not enter mobile arena - WD will compensate IBM for access to technology.