MILPITAS, CA -- October 14, 1998 -- Quantum Corporation (NMS: QNTM) and Read-Rite Corporation (NASDAQ: RDRT) today announced a development agreement through which Read-Rite Corporation will develop and supply magnetoresistive (MR) recording heads for Quantum's next generation tape-drive products, based on the Super DLTtape� technology. The MR heads will be used in the Super DLTtape Magneto Resistive Cluster, which can deliver higher data-transfer rates and capacity than traditional MR heads.

Read-Rite has been supplying leading storage companies with MR heads since 1994, and is considered to be a premier provider of this technology. The MR technology for Super DLTtape products is expected to leverage Read-Rite's established expertise in MR head development and manufacturing. This enables a breakthrough product not currently offered to other companies, as tape-head technology is taken to a new level of performance. Quantum and Read-Rite plan to work closely on the development of this new multi-generation head technology.

"We are pleased that Quantum has chosen Read-Rite for this strategic relationship," said Cyril J. Yansouni, chairman and chief executive officer of Read-Rite Corporation. "We have committed dedicated resources to the development and manufacturing of MR tape heads. This speaks to the high level of confidence that Read-Rite has in Quantum and in the promise of Super DLTtape technology."

"Read-Rite is a proven independent technology leader and we have a high degree of confidence in their development and manufacturing expertise as well as their understanding of our technology, quality standards and schedules," said George Saliba, Quantum vice president of advanced development and group chief technical officer. "This new venture with Read-Rite is evidence of the strong momentum of Super DLTtape technology development."

Quantum plans to source its key components for Super DLTtape-based products from multiple suppliers. Read-Rite is the first source identified by Quantum for MR heads for this program. As with its DLTtape products, Quantum will conduct final assembly of Super DLTtape products in its Colorado Springs facility.

About Read-Rite

Read-Rite Corporation is one of the world's leading independent manufacturers of MR recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and magnetoresistive heads for 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.

About the Super DLTtape Technology

The Super DLTtape technology is Quantum's next-generation DLTtape technology. Expected to appear in products in mid-1999, Super DLTtape technology uses Laser Guided Magnetic Recording to deliver a fundamentally different approach to tape recording through a combination of optical and magnetic methods. Using four new technology breakthroughs, Super DLTtape can provide an order of magnitude increase in performance and capacity over current DLTtape products, while improving the cost-effectiveness and the modularity of the platform. DLTtape drives are the worldwide revenue leader among tape drives. The DLTtape platform has become the industry standard for protecting enterprise data stored on mid-range servers and is the pervasive backup and archival solution for large and mid-size businesses and organizations. The ubiquity of DLTtape drives stems from the fact that they are included in storage systems from every major computer-systems vendor-including Compaq Computer Corporation, Dell Computer Corporation, Hewlett-Packard Company, International Business Machines Corporation and Sun Microsystems, Inc.-and nearly every tape-automation vendor- including Advanced Digital Information Corporation, ATL Products, Inc., Breece Hill Technologies, Inc., Exabyte Corporation, Overland Data, Inc., Qualstar Corporation and Storage Technology Corporation. Comprehensive information about DLTtape technology is available on the http://www.dlttape.com web site.

About Quantum

Founded in 1980, Quantum Corporation (http://www.quantum.com) is a diversified mass storage company with leadership positions in both fixed and removable storage markets. Quantum is the highest volume global supplier of hard disk drives for personal computers, a leading supplier of high capacity hard drives and the worldwide revenue leader among all classes of tape drives. The company sells a broad range of storage products to OEM and distribution customers worldwide. Quantum's sales for the fiscal year ending March 1998 were $5.8 billion.

This news release contains forward-looking statements regarding the development, capabilities and availability of MR heads for Super DLT-based products and products incorporating MR heads. Factors that may cause actual results to differ materially include but are not limited to: the ability of Read-Rite Corporation to develop heads meeting Quantum's performance requirements in an appropriate timeframe, introduction of products by competitors that are more cost effective or earlier to market, and other risks detailed from time to time in the companies' annual reports and Forms 10K and 10Q.

Quantum, the Quantum logo are trademarks of Quantum Corporation, registered in the United States and other countries. DLTtape is a trademark of Quantum Corporation.