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

To: P.T.Burnem who wrote (3521)	6/11/1998 2:19:00 PM
From: William Wang	Respond to of 5058

Read-Rite to Supply Samsung Magnetoresistive Recording Heads Supporting 2.8 GB Per 3.5-Inch Disk MILPITAS, Calif., June 11 /PRNewswire/ -- Read-Rite Corporation (Nasdaq: RDRT - news) today announced that Samsung Corporation has qualified Read-Rite's magnetoresistive (MR) recording heads for their desktop hard disk drive program supporting 2.8 GB per 3.5-inch disk. ''We are very pleased that Read-Rite has again been selected as a major supplier for Samsung's SpinPoint desktop MR hard disk drive program,'' said Alan S. Lowe, president and chief operating officer. ''We have an excellent relationship with Samsung and welcome the opportunity to continue our support of this key customer on their next generation MR platform. Read-Rite's transition to MR for its desktop disk drive customers is complete. We are confident in our ability to accelerate production to accommodate our customers on current MR platforms and in our development efforts for future MR and GMR programs,'' he added. ''Samsung and Read-Rite have developed an excellent strategic partnership over the last two years,'' said Dr. Moon S. Song, vice president and general manager of Samsung's storage systems division. ''This partnership has helped Samsung to reach 2.8 GB per 3.5 inch disk and we believe will allow us to continue to develop leading edge products for the future,'' he added. Mr. Lowe said Read-Rite will be shipping MR heads for Samsung's new drive program as head gimble assemblies (HGAs) and fully assembled head stack assemblies (HSAs) containing up to six MR heads. Read-Rite's MR wafers will be fabricated into MR sliders then assembled into HGAs in Thailand. Subsequently, the HGAs will be assembled into HSAs at Read-Rite's facility in the Philippines and shipped to Samsung's manufacturing plant in Kumi, Korea. Read-Rite Corporation is one of the world's leading manufacturers of MR recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and magnetoresistive heads for tape drives. The company is headquartered in Milpitas, California and has operations in Japan, Thailand, Malaysia, the Philippines and Singapore. Read-Rite employs 22,000+ people. The company's home page on the World Wide Web can be reached at www.readrite.com. This news release contains statements which include forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and are subject to the ''safe harbor'' created by those sections. These statements include, but are not limited to, the Company's belief that its transition to MR technology is complete; the Company's expectation that it will in fact supply MR heads for Samsung's 2.8 per 3.5 inch disk drive program both now and in the future; and the Company's belief that it can and will accelerate production on current and future MR platforms. The Company's actual results for future periods could differ materially from those projected in such forward-looking information. Factors that could cause actual results to differ include, but are not limited to: the current unfavorable industry environment which could continue longer than expected or worsen; possible further reductions in orders; customers may not order, or may cancel or reschedule orders for MR heads; possible further deterioration in the economic conditions in Korea and other Asian countries which could adversely affect the Company's customers located in those areas; and the other factors described in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for fiscal 1997 and quarterly reports on Form 10-Q for the first and second quarters of Fiscal 1998 ended December 29, 1997, and March 31, 1998, respectively. Read-Rite undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.