Top 100 Computer Companies
Maxtor to Expand Manufacturing
Presence in Singapore
MILPITAS, Calif. - February 25, 1999 - Maxtor Corp. (NMS:MXTR) today
announced that it has signed an agreement to purchase a building in Singapore to support
expansion of its hard disk drive manufacturing capability as required to meet demand.
"Maxtor has grown faster than the rest of the industry over the past two years,
driven by our consistent leadership in bringing new products to market while delivering
the highest levels of quality and customer support," said Mike Cannon, Maxtor's
President and CEO. "Over the past year, we increased output in our existing plant
through both productivity improvements and the addition of process tooling. We are taking
advantage of an opportunity to add raw square footage in Singapore at an attractive price
which we will gradually fit up over the next few years as demand warrants."
In the fourth quarter of 1998, Maxtor shipped over 5.3 million hard disk drives for
desktop personal computers, up 23% from the third quarter and an increase of 74% from the
fourth quarter a year ago. The company increased shipments and revenue over the past year
significantly faster than the industry while improving profitability each quarter during
"We believe that flexible manufacturing is one of Maxtor's core competencies and
that our manufacturing operation in Singapore has been a key factor in our ability to grow
our business rapidly and profitably," said Cannon. "Our unique cell-based
manufacturing approach enables us to add capacity in relatively small increments, just
ahead of demand. By expanding in Singapore and treating this new factory as an extension
of our existing plant, we can continue to incrementally scale capacity in the most cost
effective manner and maintain our high rate of asset utilization."
The new building is approximately 350,000 square feet and will include some
administrative offices and warehouse capacity in addition to manufacturing lines. This
facility is located within 10 kilometers (6.2 miles) north of Maxtor's current Singapore
production facility which is in the Ang Mo Kio Industrial Park III. Completion of the
purchase is subject to certain conditions and approval from the various Singapore
Maxtor Corp. [NASDAQ:MXTR] is a leading supplier of hard disk drives for desktop computer
systems. The Company is the fastest growing supplier of hard disk drives for the desktop
personal computer market, more than doubling its market share over the past 1 Ĺ years.
Maxtor has built its leadership position by consistently leading the industry in bringing
new products to market, while delivering the highest levels of quality and customer
support. The Company's current products include the 5400 RPM DiamondMax‘ 4320 and
DiamondMax 3400 families and the 7200 RPM DiamondMax Plus 2500 series of drives. More
information about Maxtor and Maxtor products can be found at http://www.maxtor.com and the
Company can be reached toll-free at (800)2-MAXTOR.
This release contains forward-looking statements concerning Maxtor's manufacturing
capabilities, the state of demand for Maxtor's products, and the expectation that the
company will successfully complete the purchase of additional manufacturing space in
Singapore. These statements are based on current expectations and are subject to risks and
uncertainties which could materially affect the company's results, including, but not
limited to, market demand for hard disk drives, the company's ability to execute future
production ramps and utilize manufacturing assets efficiently, pricing, and actions by
competitors. These and other risk factors are contained in Maxtor's Prospectus as well as
in recent 10-K and 10-Qs.