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WESTERN DIGITAL WILL RE-STUDY NEW HEADQUARTERS CONSTRUCTION PROJECT

IRVINE, CA.—April 21, 1999—Western Digital Corporation today announced that it will re-study its plans to build a new corporate headquarters. The project is on indefinite hold.

The Company indicated that it would maintain its corporate headquarters in the Plaza location at 8105 Irvine Center Drive through the completion of the current lease in December 2000, and is in discussions with the Irvine Company about its options to extend the lease.

When plans to build the new facility at Irvine Center Drive and Sand Canyon Drive were first announced in March 1997, the Company’s worldwide and Irvine employee populations stood at approximately 16,000 and 1,100, respectively. Today, after a 38% reduction in worldwide headcount over the last 18 months, Western Digital’s Irvine employee base stands at 785.

Chuck Haggerty, chairman, president and chief executive officer of Western Digital, said, "With the Company’s financial recovery on track in an increasingly competitive environment, we have decided that our resources and focus will be best utilized and maintained in our current headquarters without the disruption or expense of a move at this time."

Western Digital Contact
8105 Irvine Center Drive
Irvine, California 92618
(949) 932-5000

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