MILPITAS, CA -- November 2, 1998 -- Read-Rite Corporation (NASDAQ: RDRT) and Benchmark Tape Systems Corporation today announced a development agreement through which Read-Rite will develop a new MR tape head for Benchmark's tape drive products based on digital linear tape technology.

"We are pleased to be working with Read-Rite, a proven technology leader," said Jesse Aweida, chairman of Benchmark Tape Systems Corporation. "This partnership leverages the strengths of both companies in designing a leading tape systems product."

"The development agreement applies Read-Rite's expertise in MR tape head technology," said Joe Miceli, Read-Rite's vice president, new business development. "Read-Rite is the established market leader for MR heads used in tape drives, which service the desktop and low end server markets. The Benchmark product allows us to expand our product offerings into the mid range server market. We feel our expertise in tape head technology will complement Benchmark's technical team to enable a very strong product offering.

Founded in May 1998, Benchmark Tape Systems Corporation is dedicated to the development of tape back-up and archive systems that feature simplified design, reliability, ease of use, and exceptional performance for small to medium size computer networks and workstations at the most competitive prices in the industry. The company plans to market products through multiple channels of distribution worldwide.