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                            Western Digital


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Company Background
Western Digital Corporation is a leader in information storage management -- the business of maintaining information by computer. The Company makes hard drives
for the world’s leading makers of personal computers, and serves consumer markets for replacement and add-on data storage under the well-known Western
Digital brand. The Company is using proven technology and production methods as it begins the manufacture of high-capacity, enterprise hard drives for use in
workstations, servers and other network applications.

History:
Western Digital was established in 1970 as a maker of specialized semiconductors. The Company grew to become listed among the Fortune 500 industrial
companies in 1988, the year it began manufacturing hard disk drives. Revenues surpassed $1 billion in 1990 and $2 billion in 1995. The Company ended FY97 with
$4.18 billion in revenue.

Charles A. Haggerty, Chairman and Chief Executive Officer, has led the Company's management team since 1992, when he joined Western Digital from
International Business Machines Corporation. Kathryn A. Braun, President and Chief Operating Officer, Personal Storage Division, has headed the Company's
personal storage business since 1984.

In 1994, a year before its 25th anniversary, Western Digital became the first U.S.-headquartered, multinational firm awarded company-wide ISO 9001 by the
International Standards Organization, linking all its operations with a consistent global standard for quality processes.

Operations are carried on in two business units, the Personal Storage Division and the Enterprise Storage Group. The latter was established in late 1994 and began
manufacturing high-capacity hard drives for servers and workstations in calendar 1996. Operations of a third group, which provided multimedia and connectivity
products, were sold in 1995 and early 1996 in order to provide a greater focus on data storage management.

Western Digital's history is replete with examples of storage technological leadership. Since 1992, the Company has regularly appeared first-to-market and
first-to-volume with the greatest capacity per platter in the hard drive industry. Among Western Digital’s other technological accomplishments are these:

Headquartered in Irvine, California, the Company now employs over 15,000 persons in 10 nations. Manufacturing is in California, Singapore and Malaysia; sales
offices are maintained around the world.

Western Digital securities have been listed on the New York Stock Exchange since 1991.

Personal Storage Division:
Western Digital is a recognized market and technology leader in disk drives for personal computers. Today, the Company's 3.5-inch Enhanced IDE drives range in
capacity from 1.6 gigabyte to 6.4 gigabytes, meeting the storage needs of tomorrow's most demanding applications. The award-winning Caviar family of hard drives
is found in computers made by leading systems producers, including Apple, Bull-Zenith, Compaq, Dell, Fujitsu, Gateway 2000, Hewlett-Packard, IBM, Micron,
NEC and Siemens-Nixdorf. Exceptional performance, quality and reliability have also made Western Digital Caviar the hard drive of choice for distributors,
resellers, and end users throughout the world.

Western Digital was one of the key architects of the Integrated Drive Electronics (IDE) interface, which became the personal computer hard drive interface standard
in 1986. The Company went on to develop, in 1993, Enhanced IDE, which handles higher capacities and supports faster data transfers and wider expansion
options.

Western Digital's Personal Storage Division has been honored by the industry's top trade publications, with such awards as the Computer Reseller News "Channel
Champion"

Award for 1993, 1994, 1995, 1996 and 1997; PC World's "World Class" Award for 1993, 1994, 1995, 1996 and 1997; the 1994 PC/Computing MVP Award;
1994 PC Magazine Technical Excellence nominee for Enhanced IDE technology; 1994 PC/Computing Innovative Product of the Year nominee for Enhanced IDE;
and Computer Shopper's "Best Buy" Award for 1993, 1994, and 1995. The Personal Storage Group has been honored by top trades publications in Europe as
well, with awards such as Computer Totaal's (Netherlands) 1996 "Readers Choice" Award; PCDirect's (France) 1996 "Best Buy" Award; PCDirect's (United
Kingdom) 1996 "Readers Award"; 1996 "Best Buy" Award from Computer Buyer (United Kingdom); the 1996 PCtip (Switzerland) "Drive of the Year" Award;
and the 1996 PC Praxis' (Germany) "Editors' Choice" Award.

Enterprise Storage Group:
In 1994, Western Digital formed a research and development center focusing on cost-effective, high-performance hard drives for multi-user, multi-tasking
environments. The Enterprise Storage Group offers high-capacity SCSI drives (2.1 GB, 4.3 GB and 9.1 GB) for high-end PCs, workstations and servers.

The new group's products are manufactured in a new plant in Singapore, near the company's long-proven sources of supply, and will be based on technologies and
production methods well-established in Western Digital's Caviar line of hard disk drives.

Quality Orientation:
Western Digital's total quality commitment is woven through every aspect of the Company, from engineering to manufacturing to administration. Its company-wide
ISO 9001 registration, earned in 1994, links all Western Digital organizations with a consistent global standard for quality processes. The commitment to ISO 9001
quality standards complements the Company's continuous process improvement program, which has been a part of Western Digital's culture since 1990.

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