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Silicon Systems, Inc.
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Tustin, California, USA

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Silicon Systems To Supply Multiple ICs
For TeraStor Corporation’s New
Near-Field Recording Development


TeraStor’s NFR Technology Seeks To Move Areal Density of Mass Storage Drives To New Heights

Tustin, CA, April 28, 1997 -- Silicon Systems, a Texas Instruments company specializing in semicxonductor solutions for mass storage applications, announced today an agreement with TeraStor Corporation that will leverage Silicon Systems hard disk drive expertise to support TeraStor’s Near Field Recording (NFR) technology. TeraStor’s NFR drives will offer data capacity of 10 times the areal density of current hard disks. The new drives are expected to be introduced in early 1998.

“In keeping with our commitment as the leading supplier of semiconductors to the mass storage industry it’s exciting to be involved in a new, revolutionary technology developments like DVD, HDFD and TeraStor’s Near Field Recording,” said Russ Garcia, vice president of marketing at Silicon Systems. Amyl Ahola, chief operating officer of TeraStor said, “TeraStor needed a partner with design expertise and the ability to ramp-to-volume. Silicon Systems is that company.”

Silicon Systems is working with TeraStor to bring its drives to market by designing and fabricating a majority of the drive electronics. The multiple IC designs take advantage of the broad range of design expertise developed and honed over the last 25 years at Silicon Systems. By pulling together its extensive knowledge in the HDD, MOD, and DVD arenas, Silicon Systems designs are able to fulfill the requirements needed to support TeraStor’s Near Field Recording technology. In addition, by using its vast worldwide manufacturing resources, Silicon Systems will be able to seamlessly transition the TeraStor ICs into production.


About Silicon Systems

As the mass storage subsidiary of Texas Instruments Incorporated, Silicon Systems, Inc. provides advanced semiconductor solutions for hard disk drives, tape drives, high density floppy disk drives, and optical disk drives. Its innovations in read channels, controllers and preamps are complemented by TI's leadership in DSP and ASIC solutions and global semiconductor manufacturing capabilities.


About TeraStor

TeraStor is committed to developing, licensing and bringing to market products based on the new Near Field Recording category of mass storage devices. Its headquarters are located at 95 West Plumeria Drive, San Jose, Calif. 95134. Company executives include Jim McCoy, chairman and CEO; Amyl Ahola, chief operating officer; Gordon Knight, Ph.D., chief technical officer and Bill Dobbin, chief financial officer. For additional information, contact TeraStor at 408/324-2110 or browse the Web site at http://www.terastor.com.

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