READ-RITE SHIPPING TAPE HEADS IN VOLUME ON BENCHMARK STORAGE INNOVATION�S VALUSMART TAPE 80 DRIVE

 FREMONT, CA - May 17, 2001 - Read-Rite Corporation (Nasdaq: RDRT) today announced that they have begun volume tape head shipments for Benchmark Storage Innovations, Inc.�s ValuSmart Tape� 80, the industry's first half-high DLT tape drive. This signifies Read-Rite�s commitment to be a leading supplier to the tape industry as new technologies are developed. The new half-high platform creates new market opportunities for Benchmark through the change in packaging, lower cost and increased capabilities.

�We are excited to provide enabling technologies to Benchmark�s ground breaking new offerings,� said Craig Cocchi, Read-Rite�s Vice President and General Manger of Tape Head Business Unit. �We are pleased to extend and strengthen our ongoing relationship with Benchmark as one of their strategic suppliers for their rapidly growing line of DLT ValuSmart Tape products.�

�Benchmark�s selection of industry-leading partners like Read-Rite is paramount to meeting the needs of our customers,� said Steven Berens, Benchmark�s Vice President of Marketing. �Our long term commitment and partnership with Read-Rite serves to highlight Benchmark�s strategy of delivering proven technology that leverages industry standards in value-oriented packages.�

 Benchmark ValuSmart Tape 80

The ValuSmart Tape 80 features DLT technology�s first half-high, 5.25 inch form factor and offers 80 GB of compressed capacity and a 6MB/second compressed transfer rate. Now storage servers or workstations can be backed up on one single tape cartridge housed in the server itself. Its soft unload capability was designed specifically for automation. Along with leading price/performance metrics, the ValuSmart Tape 80 offers organizations a clear migration path because it is read-compatible with the DLT1, DLT4000, and utilizes DLTtapeTM IV media.

Read-Rite Corporation is one of the world's leading independent manufacturers of magnetic recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and tape drives. The company is headquartered in Fremont, California and has operations in California, Thailand, the Philippines, Japan, Singapore and South Korea. The company's website is located at http://www.readrite.com. Read-Rite is also the majority shareholder of Scion Photonics, Inc. an integrated solution provider to the fiber optics industry whose offerings include advanced Dense Wavelength Division Multiplexers (DWDM), contract manufacturing services and fiber optic assembly equipment. Scion's website is located at http://www.scionphotonics.com.

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in such forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, the factors described in the company's reports filed with the SEC, including, but not limited to, its Annual Report on Form 10-K for fiscal 2000 and Quarterly Report on Form 10-Q for the first and second quarters of Fiscal Year 2001 ended December 31, 2000 and April 1, 2001, respectively. Read-Rite undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.

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