MILPITAS, CA -- December 10, 1998 -- Read-Rite Corporation (Nasdaq: RDRT) today announced an agreement with Guzik Technical Enterprises to set up joint technology teams to support the development of future test development requirements of the company.

"As the head industry moves rapidly to higher areal densities, test processes and equipment are becoming more critical for our continued success," said Cyril J. Yansouni, chairman and chief executive officer.

"We are pleased to be working with Guzik as we continue to push areal density beyond our record-setting 13.5 gigabits per square inch," he added.

"This agreement gives us additional visibility and recognition by providing a close association with a company making significant advances in the magnetic recording industry" said Nahum Guzik, President of Guzik Technical Enterprises.