Quantum Corporation Breaks New Ground in Personal Audio Recording Market; Signs Agreements with Lydstrom and ReQuest Multimedia, Makers of Hard Drive-Enabled Music Jukeboxes - Company Business and Marketing

Edge: Work-Group Computing Report, Dec 27, 1999

The Consumer Electronics Business Unit of Quantum Corporation's Hard Disk Drive Group Monday announced it has signed agreements to provide Quantum QuickView audio technology to Lydstrom Inc. and ReQuest Multimedia -- makers of a new breed of home stereo music jukebox that allows music listeners to digitally record, organize and access thousands of songs on Quantum hard disk drives.

Quantum has pioneered technology for personal audio recording and storage as it has in the personal video recording market with companies such as TiVo and Replay Networks. Quantum QuickView audio technology provides consumers with the ultimate in music management features including instant recording, instant playback and instant access to any song recorded on a Quantum QuickView drive. Because there is no tape involved, there is no rewinding or fast forwarding to find a specific song. Instead, users benefit from instant access to any song they have recorded.

In addition to Quantum QuickView audio technology for playing, recording and organizing thousands of songs, both products from Lydstrom and ReQuest Multimedia feature integrated compact disc players for source content. The products are designed to easily integrate into home stereo systems. Using remote control devices, users can enjoy instant, on-demand, and music playback according to specific artist, genre, album and song. Entire CD collections can be stored, and customized playlists can be created. Both companies plan to ship their products to customers in January of 2000.

"Products such as these will soon become mainstream equipment for modern home entertainment systems, and Quantum QuickView for Audio technology is in a position to become the next storage medium for popular music," said Gerry Kaufhold, principal analyst with Cahners In-Stat Group, a research firm based in Scottsdale, Ariz. "The opportunity here is enormous. We see this market consuming more than 5 million disk drives in 2001."

"IDC believes that the digital audio category will undergo significant growth over the next few years, with over 10 million units shipping in 2003," said Kevin Hause, director of consumer device research for International Data Corporation (IDC). "While the near-term market will be fueled by portable players, broader market expansion will accelerate with the advent of stand-alone and car audio players."

"Quantum QuickView will play a pivotal role in this new category by enabling features that offer listeners instantaneous access to and manipulation of their digitally stored music," said Tony Francesca, vice president and general manager of Quantum's Consumer Electronics Business Unit. "It is our belief that Quantum QuickView-enabled music jukeboxes will provide consumers with a level of control and convenience that they will embrace enthusiastically."

Founded in 1980, Quantum Corporation (www.quantum.com) is the world's leading storage supplier in five of the seven markets it serves: desktop hard disk drives, tape drives, network attached storage (NAS) appliances, solid state systems and hard disk drives for the emerging personal video recorder (PVR) market. Quantum is also the second largest supplier of mid-range tape automation systems and a leading supplier of high-end hard disk drives. In 1999 Quantum became the first Silicon Valley company to issue tracking stock, replacing its existing common stock with the ticker symbols DSS and HDD, which track the separate performance of the company's DLT and Storage Systems and Hard Disk Drive businesses. Both stocks are traded on the New York Stock Exchange. Selling its products through OEM and distribution channels worldwide, sales for the fiscal year ending March 1999 were $1.3 billion for Quantum's DLT and Storage Systems Group and $3.6 billion for Quantum's Hard Disk Drive Group. FMI: www.quantum.com.