FOR IMMEDIATE RELEASE
June 29, 2000

READ-RITE SIGNS COMMITMENT LETTER FOR A NEW CREDIT FACILITY TO REPLACE EXISTING BANK GROUP; COMPANY�S LARGEST SHAREHOLDER INCREASES EQUITY STAKE THROUGH A PRIVATE PLACEMENT

MILPITAS, CA - June 29, 2000 -- Read-Rite Corporation (Nasdaq: RDRT) today announced that it had signed a commitment letter for a new credit facility to replace the company�s existing bank group. The company stated that it will have more comments on the status of this new credit facility when it announces Read-Rite�s fiscal third quarter results after the close of the market on July 26, 2000.

In addition, Read-Rite announced that the company�s largest shareholder, the State of Wisconsin Investment Board (�SWIB�), has agreed to purchased an additional 4 million shares of the company�s common stock in a private placement valued at over $8.1 million. �The State of Wisconsin Investment Board is pleased in helping to fund the exciting product pipeline of Read-Rite,� said John Nelson, Investment Director for SWIB. �In our opinion, Read-Rite has the management team in place and the product position to go after some major opportunities in the technology markets. We look forward to participating in Read-Rite�s future as a major, long-term shareholder.� The State of Wisconsin Investment Board manages over $70 billion on behalf of 465,000 public employees and retirees.

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 Milpitas, California and has operations in Japan, Thailand, the Philippines and Singapore. The company�s home page on the world wide web can be reached at http://www.readrite.com.

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