The world leader in hard disk drives and storage solutions, Seagate Technology, and the world leader in digital electronics and information technology, Samsung Electronics Corporation, announces its fusion for a better alignment of their current and future product development. The official agreement among two parties has the following elements:

• Samsung combining its hard disk drive (HDD) operations into Seagate
• Extending and enhancing the existing patent cross-license agreement between the companies
• A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products
• A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics
• Expanded cooperation between the companies to co-develop enterprise storage solutions
• Samsung receiving significant equity ownership in Seagate
• A shareholder agreement under which an executive of Samsung will be nominated to join Seagate’s Board of Directors

Samsung’s Hard disk drive operations will now be run by Seagate and will be interfuse with Seagate’s storage solutions.With this transactions and agreement, Seagate’s customer access in China and Southeast Asia will then be eloquently expanding. Thus, Seagate will now be assured of a great source of NAND flash supply and will be the significant supplier of disk drives to Samsung. The new agreement grant Samsung the significant ownership position in Seagate.

For this new fusion, Seagate is said to be paying Samsung an amount of approximately $1.375 billion USD as the combined value of the said transactions and agreements in the form of 50% stock and 50% cash.