For Immediate Release               Contact: Cary B. Ziter                
June 10, 1996                                IBM Corporation              
                                             (408) 256-9472               
                                             David Reid                   
                                             Storage Technology Corp.     
                                             (303) 673-4815               

SAN JOSE, Calif. -- IBM and Storage Technology Corp. today announced they have signed an OEM agreement that immediately broadens IBM's family of disk storage products while greatly increasing StorageTek's distribution for those products.

Under the agreement, StorageTek, Louisville, Colo., will manufacture for IBM storage subsystems that it currently sells under the brand names Iceberg, Kodiak and Arctic Fox. IBM will change the names to IBM RAMAC Virtual Array Storage, IBM RAMAC Scalable Array Storage and IBM RAMAC Electronic Array Storage. Storage Technology intends to use IBM as its main distribution channel beginning July 1, 1996.

During June, these products -- and services associated with them -- will be available from StorageTek and IBM. Starting in July new sales will carry an IBM logo and will be sold and serviced by IBM. StorageTek will continue to service installed machines it sold prior to this agreement.

This agreement does not affect the tape storage business of either company. Financial terms of the agreement were not announced.

The companies said they plan to integrate IBM technology, especially IBM's disk drives, into these products over time. IBM also will fund future product enhancements.

"By broadening our product line, IBM will be able to immediately meet the storage needs of a whole new range of customers," said Jim Vanderslice, general manager, IBM's Storage Systems Division, San Jose. "Our RAMAC family of products has been highly successful. Now we can offer an even larger number of storage solutions for the fast-growing area of network computing, including key applications such as data mining, multimedia or disaster recovery."

"This agreement significantly broadens customer access to our DASD technology. We know our existing customers and those who will soon be buying from IBM will be well served. Moreover, we see a strong set of products getting even stronger with the IBM content we are now planning to incorporate into the product line," said David E. Weiss, chairman, president and chief executive officer, StorageTek.

The companies said their organizations already are working worldwide to guarantee "a smooth transition for every customer."