QUANTUM ANNOUNCES AGREEMENT WITH MATSUSHITA-KOTOBUKI ELECTRONICS TO
MANUFACTURE HIGH-CAPACITY HARD DISK DRIVES

MILPITAS, CALIF., JANUARY 30, 1996 -- Quantum Corporation (NMS:QNTM)
announced that it has signed an exclusive manufacturing agreement with
Matsushita-Kotobuki Electronics Industries, Ltd. (MKE) covering all of
Quantum's hard disk drive products. In addition to the desktop products,
MKE will now manufacture Quantum's high-capacity disk drives beginning
with products currently in development. MKE has been Quantum's
manufacturing partner since 1984, and the relationship has been a key
factor in the leadership position Quantum has built in the desktop market
segment. According to Michael Brown, Quantum's chief executive officer,
leveraging this relationship for the high-capacity business is expected to
provide important competitive advantages and improve the company's
financial strength and earnings potential.

Quantum expects to report a non-recurring charge of $160 to $190 million in
the company's fourth fiscal quarter, ending March 31, 1996. The charge,
approximately two-thirds of which is non cash, is associated with the
closure of the company's two disk drive manufacturing facilities in
Penang, Malaysia and Milpitas, California; write-off of capital equipment
and inventory; and severance for approximately 1,800 regular and 450
temporary employees associated with the manufacturing operations.

"MKE brings exceptional process disciplines and focus on design maturity to
the product development and manufacturing processes," said Brown.
"Leveraging this expertise to our high-end products will enable us to
capitalize on MKE's proven record of consistent product quality and the
ability to ramp production quickly to meet customer requirements, while at
the same time reducing our inventory and capital equipment spending."

The first high-capacity drives to be built by MKE will be the Atlas II
products, 2-, 4-, and 9-gigabyte leading edge performance drives designed
for mainstream server, mainframe, and RAID applications.

"Quantum and MKE have developed a very strong and mutually successful
partnership in the desktop hard disk drive market over the past 12 years,"
said Mr. Kanamura, MKE Board director and general manager of MKE's
division producing hard disk drives. "We are very pleased to extend this
relationship to the high-capacity products where Quantum has a strong
technology position and will begin building high-capacity products this
quarter."

MKE has manufactured hard disk drives for Quantum since 1984 and has three
facilities in Japan, Singapore, and Ireland dedicated exclusively to
Quantum products. MKE has built more than 50 million drives for Quantum
since the beginning of the relationship with almost 20 million of those in
the past year.

Founded in 1980, Quantum Corporation designs and manufactures storage
products for todays digitized world. The highest unit volume supplier of
hard disk drives, Quantum is widely recognized as the industrys quality
leader. The company sells a broad range of storage products to OEM and
distribution customers worldwide. The Companys sales for the fiscal year
ending March 1995 were $3.4 billion. Quantums World Wide Web home page
address is http://www.quantum.com.

Founded in 1969, Matsushita-Kotobuki Electronics Industries, Ltd. is part
of the Matsushita Group. MKE, which had consolidated revenue of $4.6
billion for the fiscal year ended March 1995, specializes in high-volume,
high-quality electronics manufacturing including digital memory
technology, audio visual products, information services, software,
heating, and other related product areas.

This release contains forward-looking statements concerning the expected
competitive and financial benefits associated with the change in
manufacturing strategy. Actual results could vary from those expected due
to the following risk factors: the transition of high-capacity products to
MKE may not occur as quickly or as smoothly as the company expects due to
the risks inherent in a change in manufacturing strategy of this type; the
anticipated financial benefits depend to a large degree on the successful
customer acceptance and qualification of the high-capacity products;
competitive pricing pressures and unanticipated cost increases could
offset the anticipated benefits of the change in manufacturing strategy.

Quantum Corporation
500 McCarthy Blvd
Milpitas, CA 95035
408-894-4000
 
 =========================================================
 From the 'New Product News' Electronic News Service on...
 AOL (Keyword = New Products) and Delphi (GO COMP PROD)
 =========================================================
 This information was processed from data provided by the
 company/author mentioned. For additional details, please
 contact them directly at the address/phone# indicated.
 Trademarks are the property of their respective owners!
 =========================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  USA
 Email:   rbakerpc@aol.com   --or--   rbakerpc@delphi.com
 =========================================================
