Maxtor Corporation Becomes World's Largest Hard Disk Drive Company With The Completion of Quantum HDD Merger

New Maxtor Well Positioned to Drive a Wide Range of Storage Solutions



Apr 02, 2001, 01:00 ET from Maxtor Corporation

    MILPITAS, Calif., April 2 /PRNewswire/ -- Maxtor Corporation
 (Nasdaq:   MXTR) today announced the completion of its merger with Quantum HDD,
 a transaction that establishes Maxtor as the world's largest hard disk drive
 manufacturer based on annual combined unit shipments and a leader in the
 delivery of storage solutions and technology.  Combined revenues from Maxtor
 and Quantum HDD were approximately $6 billion in 2000.
     The product range of the merged company includes hard disk drives for an
 array of applications including desktop PCs and advanced servers, to network
 attached storage solutions and consumer electronics products.  Additionally,
 Maxtor's financial strength, excellent ability to execute, and intellectual
 property portfolio will allow the company to not only maintain a leadership
 position in hard disk drives, but also enable Maxtor to expand rapidly into
 new and growing storage segments.
     "This merger is a historic moment for Maxtor, and we are very excited
 about the opportunities it offers to our customers, shareholders, and
 employees," said Mike Cannon, president and CEO.  "We now have a very broad
 line of products, an even stronger customer base, and the financial resources
 to capitalize on the growth opportunities in storage.
     "There is virtually no form of technology out there that won't be touched
 in one way or another by storage," continued Cannon.  "With the completion of
 the merger, we believe Maxtor is the best positioned company to provide the
 products, service and support that will be required to be the leader in the
 storage industry."
     According to industry analysts, the need for storage will continue to grow
 aggressively among all market segments over the next few years.
     "Storage is at an incredible intersection point.  One where technology
 advancement, the emergence of networked computing architecture, and the
 delivery of rich media are all converging," said Crawford Del Prete, senior
 vice president of International Data Corporation's Hardware Research.
 "Storage has something to offer all of these areas, making it an immense
 opportunity for years to come.  Maxtor is strategically equipped to not only
 capture value in its traditional HDD business, but also from its NAS and
 consumer electronics storage initiatives, placing them in a very strong
 competitive market position."
     The merger is expected to provide cost savings between $120 million and
 $200 million annualized within 18 to 24 months.  These savings will allow
 Maxtor to lower the breakeven point of the combined company, which will create
 additional financial resources that can be used for investments in developing
 new technologies and products to address emerging markets for storage.
     Maxtor also today announced the appointment of Paul Tufano, Maxtor senior
 vice president, finance, and chief financial officer, to the additional
 position of chief operating officer.  Michael Brown, Quantum's chairman and
 CEO, has also joined Maxtor's Board of Directors.
     Under the terms of the transaction, Quantum HDD shareholders will receive
 1.52 shares of Maxtor stock for each share of Quantum HDD that they own.  The
 transaction is expected to be tax-free to Maxtor, Quantum, and their
 respective stockholders and will be accounted for under the purchase method of
 accounting.
     The new Company's stock will be traded under the symbol MXTR on the NASDAQ
 Stock Exchange.
     Maxtor will provide an outlook on the second quarter 2001 for the combined
 company when it announces its first quarter results at the end of April.
 
     About Maxtor
     Maxtor Corporation (www.maxtor.com) is one of the world's leading
 suppliers of information storage solutions.  The company has an expansive line
 of storage products for desktop computers, network storage, high-performance
 Intel-based servers, and consumer electronics.  Maxtor has a reputation of
 being a proven market leader built by providing consistent high-quality
 products, and service and support for its customers.  Maxtor and its products
 can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR.  Maxtor
 is traded on the NASDAQ under the MXTR symbol.
 
     Note: Maxtor and the Maxtor logo are registered trademarks of Maxtor
 Corporation.
 
     This release contains forward-looking statements concerning the
 integration of Maxtor with Quantum HDD and the outlook for Maxtor going
 forward.  These statements are based on current expectations and are subject
 to risks and uncertainties which could materially affect the company's
 results, including, but not limited to, risks in Maxtor's ability to
 successfully integrate businesses of Quantum's HDD operations and Maxtor,
 costs related to the merger, market demand for hard disk drives and server
 appliances, market acceptance of the company's products, the company's ability
 to execute future production ramps and utilize manufacturing assets
 efficiently, changes in product and customer mix, pricing trends, and actions
 by competitors.  These and other risk factors are contained in periodic
 reports filed by Maxtor Corporation with the Securities Exchange Commission,
 including, but not limited to, Maxtor's Form 10-K for fiscal 2000, recent
 Forms 10-Q and the registration statement on Form S-4 related to the
 combination with Quantum HDD.
 
 

SOURCE Maxtor Corporation
    MILPITAS, Calif., April 2 /PRNewswire/ -- Maxtor Corporation
 (Nasdaq:   MXTR) today announced the completion of its merger with Quantum HDD,
 a transaction that establishes Maxtor as the world's largest hard disk drive
 manufacturer based on annual combined unit shipments and a leader in the
 delivery of storage solutions and technology.  Combined revenues from Maxtor
 and Quantum HDD were approximately $6 billion in 2000.
     The product range of the merged company includes hard disk drives for an
 array of applications including desktop PCs and advanced servers, to network
 attached storage solutions and consumer electronics products.  Additionally,
 Maxtor's financial strength, excellent ability to execute, and intellectual
 property portfolio will allow the company to not only maintain a leadership
 position in hard disk drives, but also enable Maxtor to expand rapidly into
 new and growing storage segments.
     "This merger is a historic moment for Maxtor, and we are very excited
 about the opportunities it offers to our customers, shareholders, and
 employees," said Mike Cannon, president and CEO.  "We now have a very broad
 line of products, an even stronger customer base, and the financial resources
 to capitalize on the growth opportunities in storage.
     "There is virtually no form of technology out there that won't be touched
 in one way or another by storage," continued Cannon.  "With the completion of
 the merger, we believe Maxtor is the best positioned company to provide the
 products, service and support that will be required to be the leader in the
 storage industry."
     According to industry analysts, the need for storage will continue to grow
 aggressively among all market segments over the next few years.
     "Storage is at an incredible intersection point.  One where technology
 advancement, the emergence of networked computing architecture, and the
 delivery of rich media are all converging," said Crawford Del Prete, senior
 vice president of International Data Corporation's Hardware Research.
 "Storage has something to offer all of these areas, making it an immense
 opportunity for years to come.  Maxtor is strategically equipped to not only
 capture value in its traditional HDD business, but also from its NAS and
 consumer electronics storage initiatives, placing them in a very strong
 competitive market position."
     The merger is expected to provide cost savings between $120 million and
 $200 million annualized within 18 to 24 months.  These savings will allow
 Maxtor to lower the breakeven point of the combined company, which will create
 additional financial resources that can be used for investments in developing
 new technologies and products to address emerging markets for storage.
     Maxtor also today announced the appointment of Paul Tufano, Maxtor senior
 vice president, finance, and chief financial officer, to the additional
 position of chief operating officer.  Michael Brown, Quantum's chairman and
 CEO, has also joined Maxtor's Board of Directors.
     Under the terms of the transaction, Quantum HDD shareholders will receive
 1.52 shares of Maxtor stock for each share of Quantum HDD that they own.  The
 transaction is expected to be tax-free to Maxtor, Quantum, and their
 respective stockholders and will be accounted for under the purchase method of
 accounting.
     The new Company's stock will be traded under the symbol MXTR on the NASDAQ
 Stock Exchange.
     Maxtor will provide an outlook on the second quarter 2001 for the combined
 company when it announces its first quarter results at the end of April.
 
     About Maxtor
     Maxtor Corporation (www.maxtor.com) is one of the world's leading
 suppliers of information storage solutions.  The company has an expansive line
 of storage products for desktop computers, network storage, high-performance
 Intel-based servers, and consumer electronics.  Maxtor has a reputation of
 being a proven market leader built by providing consistent high-quality
 products, and service and support for its customers.  Maxtor and its products
 can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR.  Maxtor
 is traded on the NASDAQ under the MXTR symbol.
 
     Note: Maxtor and the Maxtor logo are registered trademarks of Maxtor
 Corporation.
 
     This release contains forward-looking statements concerning the
 integration of Maxtor with Quantum HDD and the outlook for Maxtor going
 forward.  These statements are based on current expectations and are subject
 to risks and uncertainties which could materially affect the company's
 results, including, but not limited to, risks in Maxtor's ability to
 successfully integrate businesses of Quantum's HDD operations and Maxtor,
 costs related to the merger, market demand for hard disk drives and server
 appliances, market acceptance of the company's products, the company's ability
 to execute future production ramps and utilize manufacturing assets
 efficiently, changes in product and customer mix, pricing trends, and actions
 by competitors.  These and other risk factors are contained in periodic
 reports filed by Maxtor Corporation with the Securities Exchange Commission,
 including, but not limited to, Maxtor's Form 10-K for fiscal 2000, recent
 Forms 10-Q and the registration statement on Form S-4 related to the
 combination with Quantum HDD.
 
 SOURCE  Maxtor Corporation