Exhibit 99.1

Exhibit 99.1      Press release, dated January 29, 2009.

   News Release

QUANTUM CORPORATION REPORTS FISCAL THIRD QUARTER RESULTS

Grows Disk Systems and Software Revenue 100 Percent Year-Over-Year with Strong Adoption of New DXi7500 Express Deduplication Appliance for SME Environments

SAN JOSE, Calif., Jan. 29, 2009 – Quantum Corp. (NYSE:QTM), the leading global specialist in backup, recovery and archive, today announced that revenue for its fiscal third quarter (FQ3’09), ended Dec. 31, 2008, was $204 million and included $31 million in disk systems and software revenue. The company had a GAAP operating loss of $334 million and a net loss of $340 million, or $1.63 per share. These figures include an estimated non-cash charge of $350 million for goodwill impairment. On a non-GAAP basis, Quantum generated $31 million in operating income which represented 15 percent of revenue, the highest level achieved in eight years. Non-GAAP net income for the quarter was $26 million, also the highest level in eight years and significantly above analysts’ expectations. (For a reconciliation of GAAP to non-GAAP figures, please see the accompanying tables under the section on “Use of Non-GAAP Financial Measures.”)

Compared to the same quarter in the previous year (FQ3’08), Quantum’s total revenue was down 19 percent, due to the weaker economic environment, the company’s strategy of continuing to shift its sales mix toward higher margin opportunities and a year-over-year decline in branded tape sales and media royalties. Despite the revenue decline, the company’s GAAP gross margin rate was 42 percent, up from 35 percent in FQ3’08 and the highest level Quantum has achieved in eight years.

“Our December quarter results clearly demonstrate the progress we’ve made in executing on key components of our strategy, even in the face of a very challenging economic environment,” said Rick Belluzzo, chairman and CEO of Quantum.

-more-

“We doubled our disk systems and software revenue year-over-year, with strong sales from our new midrange DXi7500 Express solution and our EMC partnership. This helped drive both the significant improvement in GAAP gross margins, which have increased from 28 percent to 42 percent since we merged with ADIC, and the 15 percent non-GAAP operating income we delivered. While we have more work to do to take full advantage of our opportunities and address the challenges posed by our capital structure, we are continuing to strengthen our market position by providing customers with integrated disk, tape and software solutions for multi-site, multi-tier data protection and management.”

Due to a combination of factors, including the impact of the economic environment on its business and the decline in its stock price over the last several months, Quantum began conducting an impairment analysis of its goodwill during FQ3’09, as required by GAAP. Based on the analysis to date, the company has included the estimated $350 million non-cash impairment charge in its GAAP results announced today.¹ The charge does not impact Quantum’s cash balances, liquidity, ability to generate cash flow or compliance with debt covenants. With the inclusion of the impairment charge, Quantum’s GAAP operating expenses for the quarter totaled $420 million, resulting in the GAAP net loss of $340 million, or $1.63 per share. In FQ3’08, GAAP operating expenses were $78 million, and the GAAP net loss was $2 million, or 1 cent per share.

In addition to the estimated $350 million goodwill impairment charge, the $340 million GAAP net loss for FQ3’09 included $9 million in amortization of intangibles, $4 million in restructuring charges and $2 million in stock-based compensation. The net impact of these four items reduced earnings per share on a diluted basis by approximately $1.75.

Quantum’s product revenue, which includes sales of the company’s hardware and software products, totaled $144 million in the December quarter. This represented a net decrease of $41 million from FQ3’08, due to an expected decline in overall OEM revenue as well as lower sales of branded non-royalty media, tape automation systems and devices.

Disk systems and software revenue, inclusive of related service revenue, was $31 million in FQ3’09, a 100-percent increase over FQ3’08. One of the highlights in this area was the introduction of Quantum’s DXi7500 Express deduplication appliance optimized for small and medium-size enterprise environments. Although it only shipped for less than half the quarter, the DXi7500 Express showed strong sales over this period, reinforcing the growing adoption of Quantum’s deduplication and replication technology. Based on shipments through the December quarter, this technology is being used to protect more than 400 petabytes of data. In addition, Quantum’s DXi7500 Enterprise model was recently named as a finalist in the backup hardware category for the Storage magazine/SearchStorage.com 2008 Product of the Year awards that will be announced in February.

Revenue for Quantum’s other two product categories in FQ3’09 was as follows:

-more-

Excluding royalties, the company’s branded share of revenue was 65 percent in FQ3’09, up from 62 percent in FQ3’08.

Quantum generated $19 million in cash from operations for the quarter and, as of Dec. 31, 2008, had $51 million in cash and cash equivalents. The company was also in compliance with all debt covenants as of Dec. 31, 2008, and expects to remain in compliance during the next twelve months.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used in this press release – which are non-GAAP operating income and non-GAAP net income – exclude the impact of amortization of intangibles, share-based compensation expenses, restructuring charges and goodwill impairment. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.

Quantum believes that these non-GAAP financial measures provide useful and supplemental information to investors regarding its quarterly financial performance, particularly in light of the extraordinary nature of the impact of the estimated goodwill impairment taken this quarter. Quantum management uses these non-GAAP financial measures internally to understand, manage, and evaluate the company’s business results and make operating decisions. For instance, Quantum management often makes decisions regarding staffing, future management priorities and how the company will direct future operating expenses on the basis of non-GAAP financial measures.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material impact on the company’s reported financial results and, therefore, should not be relied upon as the sole financial measures to evaluate the company. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

-more-

Non-GAAP Operating Income

The calculation of non-GAAP operating income is described in the table below. It excludes the amortization of intangibles of $9 million, share-based compensation expenses of $2 million and goodwill impairment of $350 million. These items are excluded from operating income because the amounts are non-cash, Quantum cannot influence the timing and amount of these items and doing so provides investors and management with better visibility into core operating income performance. The calculation of non-GAAP operating income also excludes restructuring charges because the charges relate to specific consolidation actions and are not part of our future core operations.

Non-GAAP Net Income

The calculation of non-GAAP net income is described in the table below. Because net income is derived from operating income, the non-GAAP net income calculation excludes the amounts for amortization of intangibles, share-based compensation expenses, restructuring charges and goodwill impairment as described for non-GAAP operating income above.

Conference Call and Audio Webcast Notification

Quantum will hold a conference call today, Jan. 29, 2009, at 2:00 p.m. PST, to discuss its fiscal third quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: (303) 262-2161 (U.S. & International). Quantum will provide a live audio webcast of the conference call beginning today, Jan. 29, 2009, at 2:00 p.m. PST. Site for the webcast and related information: http://www.quantum.com/investors.

-more-

About Quantum

Quantum Corp. (NYSE:QTM) is the leading global storage company specializing in backup, recovery and archive. Combining focused expertise, customer-driven innovation, and platform independence, Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. This includes the DXi-Series, the first disk backup solutions to extend the power of data deduplication and replication across the distributed enterprise. As a long-standing and trusted partner, the company works closely with a broad network of resellers, OEMs and other suppliers to meet customers’ evolving data protection needs. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA 95110, (408) 944-4000, www.quantum.com.

###

Quantum and the Quantum logo are trademarks of Quantum Corporation registered in the United States and other countries. DXi is a trademark of Quantum Corporation. All other trademarks are the property of their respective owners.

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, statements relating to: (1) the ultimate amount of our goodwill impairment charge for FQ3’09; and (2) our expectation that we will comply with all of our credit agreement covenants over the next 12 months, are forward-looking statements within the meaning of the Safe Harbor. These statements are based on management’s current expectations and are subject to certain risks and uncertainties. As a result, actual results may differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially from those described herein include, but are not limited to, the consequences of the continued U.S. and global financial crisis and the accompanying worldwide recession, uncertainty regarding information technology spending and the corresponding uncertainty in the demand for our products and services, our ability to achieve anticipated pricing, cost and gross margin levels, the successful execution of our strategy to expand our businesses into new directions, the availability of credit on terms that are beneficial to us, particularly in light of the continuing global credit crisis and worldwide recession, our ability to comply with NYSE continued listing requirement to the satisfaction of the NYSE and the final results of our goodwill impairment analysis. More detailed information about these risk factors, and additional risk factors, are set forth in Quantum’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors,” in Quantum’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2008 and in Quantum’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 13, 2008. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

-more-

QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per-share amounts)

-more-

Included in the above Statements of Operations:

-more-

QUANTUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

-more-

QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

-end-