StorageTek and Imation to develop next-generation storage platform; new technology to bring mainframe performance, reliability to enterprise computing

Business Wire, March 11, 1997

LOUISVILLE, Colo.--(BUSINESS WIRE)--March 11, 1997--Storage Technology Corp. (NYSE:STK) and Imation Corp. (NYSE:IMN) -- the imaging and information company recently spun-off from 3M -- today announced that they have signed an agreement to co-develop a new data storage platform that they expect will provide users of WindowsNT, UNIX, and mainframe computing applications with significant improvements in price/performance over existing technologies.

When commercialized, the new tape drive/cartridge solution will maintain compatibility with StorageTek's existing automation systems and simplify selection of data storage technology across a variety of operating environments, hardware platforms and end-user applications, officials from the two companies said.

The new platform is expected to provide a clear migration path for future advancements in capacity, transfer rate and access time, company officials added.

Product details, pricing and availability will be announced at a later date.

"StorageTek's strength in developing reliable storage management solutions and Imation's expertise in leading-edge tape cartridge design makes this a very credible partnership," said Fara Yale, principal storage analyst, Dataquest, a leading market research firm based in San Jose, Calif. "When commercialized, this technology will deliver numerous benefits for end users, utilizing a wide range of computing applications."

"This technology is another step in the continuing evolution of Nearline(R) storage," said David E. Weiss, chairman, president and chief executive officer, Storage Technology Corp. "By providing compatibility with StorageTek libraries and software to manage various tape drive and media technologies, customers can integrate this platform at their own pace. The results of our collaboration with Imation will enable applications that can access and manipulate information in ways that have not been feasible to date."

"The explosive growth in network computing continues to fuel end-user demand for high-performance, low-cost information storage solutions," said Bill Monahan, chairman and chief executive officer, Imation Corp.

"In addition to our data storage customer base, we see a significant opportunity to deliver this platform to our customers in the printing, graphic arts, prepress and medical imaging markets. By extending data storage solutions across our existing customer base and into new market categories, Imation is addressing a fundamentally larger business opportunity in the future."

Monahan added that the new platform is expected to deliver a unique combination of improvements in capacity, transfer rate and access time, making the new technology well suited for end users in the financial and digital video industries -- environments where rapid data transfer and retrieval are particularly important.

Imation supplies a variety of products and services worldwide for the imaging and information industry, specializing in imaging and data storage applications. The company is the world's largest manufacturer and marketer of branded removable media for data storage applications. Imation generated revenues of approximately $2.3 billion 1996. Imation employs 9,400 people and is based in Oakdale, Minn.

Additional information about Imation is available on the company's website at http://www.imation.com, by calling Imation toll-free at 1-888-466-3456, or through the company's toll-free shareholder information line at 1-888-IMN-NYSE (1-888-466-6973).

StorageTek is the preeminent provider of network computing storage. The company's products and services are used to store, transport and secure more than 100 petabytes of the world's information, ranging from mainframe data to client/server applications to video and audio. The company, based in Louisville, Colo., reported earnings of $180.3 million on revenue of $2.04 billion in 1996. Information on StorageTek is available on the World Wide Web at http://www.storagetek.com and http://www.network.com . -0-

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CONTACT: David Reid

Storage Technology Corp.

303/673-4815

or

Jason Thunstrom, Manager, External Communications

Imation Corp.

612/704-3133 or 612/704-3164

or

Brad Allen, Director, Investor Relations

Imation Corp.

612/704-5818