Transaction Complete:  Quantum Acquires Significant 	Page 1Portion of 
Digital's Storage Businesses		October 3, 1994Transaction Complete:  
Quantum Acquires Significant 	Page 1Portion of Digital's Storage Businesses
		October 3, 1994	- more -	- more -FOR IMMEDIATE RELEASE
	Contact:	Catherine Hartsog  			Director, Corporate 
				    Communications			(408) 894-4334	 
	TRANSACTION COMPLETE:  QUANTUM ACQUIRESSIGNIFICANT PORTION OF DIGITAL'S 
STORAGE BUSINESSES	MILPITAS, Calif.,  October 3, 1994: Quantum 
Corporation (NMS:QNTM) today announced that it has completed the purchase of 
Digital Equipment Corporation's hard disk drive, tape drive, solid state disk, 
and thin-film heads business for $360 million, subject to adjustments in 
accordance with the agreement.  The purchase is being financed with $290 
million cash and bank debt and a note to Digital for $70 million.  The 
transaction includes Digital's 81% ownership position in Rocky Mountain 
Magnetics, Incorporated, an industry leader in the development of 
magnetoresistive head technology.  	According to William J. Miller, Quantum's 
chairman and chief executive officer, this move puts Quantum in a position to 
extend its leadership in the storage industry.  "We now have the capabilities 
necessary to develop a more significant position in the high-capacity, high-
performance segment of the market," Miller said.  "We have a broader 
technology portfolio, increased development resources, and access to critical 
magnetoresistive head technology, all of which will be key factors as we move 
to take advantage of the tremendous growth opportunities in the high-end 
segments of the storage market.  	"In addition, we are pleased to be 
bringing Digital's solid state disks and digital linear tape products to 
market as part of the Quantum product portfolio," he continued.  "These 
products have significant competitive advantages which we believe will 
translate to meaningful success in the marketplace."	The two companies also 
finalized a supply agreement covering Digital's internal storage requirements 
for its core systems and StorageWorks businesses.  The specific terms were not 
disclosed, but the agreement guarantees Quantum a significant percentage of 
Digital's internal hard drive, tape, and solid state requirements.  "Digital 
has been a consistent Quantum customer for the past three years, and we look 
forward to strengthening that relationship and meeting their requirements 
across a broader range of products," Miller said.	Quantum also announced 
changes in its organization to support its new and expanded business areas.  
The company now has four business units which are defined by the markets they 
serve:	-	The High Capacity Storage Group develops products for the 
higher end workstation and server markets.   This group, headed by Robert K. 
Maeser, president, will now include Digital's disk drive business, and will 
maintain development centers in Milpitas, California and Shrewsbury, 
Massachusetts.    	-	The Desktop and Portable Storage Group, headed 
by Michael Brown, president, remains focused on drives designed for desktop 
and notebook PCs.   	-	The Recording Heads Group is a newly formed 
organization headed by Ken Lee, Quantum's Chief Technical Officer and 
executive vice president of technology and engineering.  The Recording Heads 
Groups encompasses Digital's thin-film heads business, including both its 
Shrewsbury operations and Rocky Mountain Magnetics.  Lee continues his 
leadership of Quantum's advanced technology development efforts and overall 
strategic technical direction.	-	The Specialty Storage Products Group 
is a newly formed organization which comprises the digital linear tape, solid 
state disk, and flash memory card businesses.  It is headed by Gina Bornino as 
vice president and general manager.  She will also continue in her role as 
vice president of corporate planning and development.	"We have considerable 
challenges ahead of us in integrating the businesses, but our fundamental 
goals have not changed.  We will continue to differentiate Quantum based on 
the superior quality of our products and support capabilities and our ability 
to ramp products quickly to meet customer volume requirements," Miller said.  
"We also remain focused on improving our profitability and the return on the 
capital invested in the business.  We've led the industry in efficiency of 
spending with expenses below 10% of sales the last few quarters.  We intend to 
maintain our leadership in that area and continue our efforts to lower our 
overall cost structure as well," Miller said.  	Quantum Corporation is a 
leading supplier of storage products for a broad range of computer platforms, 
serving OEM and distribution customers worldwide.  Widely recognized as the 
industry's quality leader, Quantum is the largest supplier of hard disk drives 
worldwide and has been ranked among the Fortune 500 since 1991.  The company's 
sales for the fiscal year ending March 1994 were $2.1 billion; sales for its 
first fiscal 1995 quarter were $725 million.   			###