To: Kerry Lee who wrote (21337 ) 4/10/1999 1:42:00 AM From: Douglas Nordgren Read Replies (1) | Respond to of 29386
LU & Siros Thursday April 8, 10:59 am Eastern Time Company Press Release Lucent Technologies and Siros Technologies, Inc. Announce Joint Effort to Develop High Capacity Optical Disk Storage MURRAY HILL, N.J. and SAN JOSE, Calif.--(BUSINESS WIRE)--April 8, 1999--Lucent Technologies (NYSE:LU - news) and Siros Technologies, Inc. today announced a multi-million-dollar alliance for developing new kinds of optical disk technologies capable of delivering a ten-fold increase in data storage density over today's magnetic disk drives. Under the terms of the agreement, Siros will acquire from Lucent exclusive rights to certain optical storage intellectual property, as well as cash and lab equipment. Lucent will receive an undisclosed equity stake in Siros and a seat on its board of directors. This investment is accompanied by a further investment by several existing Siros stockholders. The agreement will position Siros for rapid commercialization of newly acquired technology, which was invented at Lucent's Bell Laboratories. Siros is a privately held Silicon Valley company that specializes in ultra-high capacity optical data storage systems for the information industry. Siros is backed by a number of the premiere venture capital firms, including New Enterprise Associates, Sequel Venture Partners, CMEA Ventures and Citicorp, and has raised more than $25 million in funding to date. ''The alliance with Lucent complements our existing three-dimensional recording (3DR) technology, and strengthens Siros' intellectual property portfolio with new optical technologies that will influence the entire storage marketplace,'' said Dr. Barbara Grant, president and CEO of Siros. ''With our unique combination of expertise in hard disk drive engineering, optics, and materials chemistry, we are poised to drive both of these technologies to market quickly.'' ''Bell Labs is renowned for its technological breakthroughs in many fields, including the invention of the laser in 1958,'' said Tom Uhlman, president of Lucent's New Ventures Group. ''The technology of this new joint effort is based on a fundamentally new approach to lasers. The equity-for-technology deal with Siros is another example of how we seek strong venture partners to commercialize Bell Labs technology beyond Lucent's core businesses.'' The Bell Labs laser innovations utilize ''near-field'' optical technology. Data is written to and read from the recording media using a very-small-aperture laser (VSAL) head that flies over the rotating disk. Bell Labs has demonstrated very-small-aperture lasers with apertures measuring only 50 nanometers across (about two millionths of an inch), which is potentially equivalent to data densities of about 200 gigabits per square inch. This density level is much higher than that anticipated with blue lasers in optical storage, and even higher than the expected limit of magnetic storage (the ''super paramagnetic effect''). ''Our advanced, very-small-aperture laser is an important innovation in data storage technology because it enables significant improvements in data storage densities without a dependency on expensive, shorter wavelength lasers,'' said Afshin Partovi, a Bell Labs researcher in optical storage systems. ''The VSAL is an elegant and simple solution, eliminating the need for bulky lenses.'' Joining Siros are Larry Laurich, who is now executive vice president and general manager of the newly acquired technology, and Bill Metcalfe, formerly a director in Lucent's New Ventures Group, who is now vice president of Business Development and Strategy for the new program. ''Data-intensive applications such as the Internet, digital imaging, and data warehousing are causing the need for high-speed storage to escalate at alarming rates in multiple directions and dimensions,'' said John Monroe, chief analyst for rigid disk drives at Gartner Group's Dataquest. ''Recent advances in laser technologies could have a profound impact on traditional storage markets, and might even enable new market segments to emerge.''