PHILIPS AND WESTERN DIGITAL REACH DEFINITIVE AGREEMENT FOR SALE OF
MULTIMEDIA PRODUCTS UNIT

IRVINE, CA. -- October 18, 1995 -- Western Digital Corporation (NYSE:WDC)
and Philips Semiconductors jointly announced today that they have signed a
definitive agreement for Philips' purchase of Western Digital's Multimedia
Products Unit.

Under the terms of the agreement, Philips will acquire all the assets of
Western Digital's Multimedia Products Unit, which include the Paradise
graphics accelerator cards and the RocketCHIP family of silicon devices.
The purchase price has not been disclosed.

The Boards of Directors of both companies have approved the transaction,
which is still subject to the normal conditions of closing and the
required regulatory approvals.
 
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