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Maxtor Corporation
510 Cottonwood Drive, Milpitas, CA 95035 * (408) 432-1700

The company is a leading provider of hard disk drive storage products for desktop PC systems. The Maxtor DiamondMax product family consists of 3.5 inch form factor HDDs with storage capacities which range from approximately 2.1 GB to 11.5 GB.

Primary Underwriting Group
ManagerTierPhone
Salomon Smith BarneyLead Manager (212) 723-7300
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626
Lehman Brothers IncorporatedCo-manager (212) 526-8100
Merrill Lynch & Co.Co-manager (212) 449-4600
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100

Offering Information
NASNTL:MXTR High-Tech: SIC 3572
Type of Shares:Common Shares Filing Date:6/5/98
U.S. Shares:47,500,000 Offer Date:7/30/98
Non-U.S. Shares:0 Filing Range:$7.00 - $8.00
Primary Shares:47,500,000 Offer Price:$7.00
Secondary Shares:0 Gross Spread:$0.35
Offering Amount: $356,250,000 Selling:$0.21
Expenses: - Reallowance:$0.05
Post-IPO Shares: -
Spin out parent firm: Hyundai Electronics Industries, Co., Ltd.
Employees:9330

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Gray Cary Ware & Freidenrich
Bank's Law Firm: Cleary, Gottlieb, Steen & Hamilton
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/27/97 3/28/98 3/29/97 3/28/98
Revenue:$1,424.30$549.60$247.00Assets:$634.60
Net Income:-$109.90-$10.30-$55.00Curr Assets:$530.14
EPS:Liabilities:$854.50
Prior EPS:$33.64-$82.59Curr Liab:$635.16
Cash Flow/Oper:-$146.71-$38.94$82.16Equity:-$219.90
Cash Flow/Fin:$193.58$1.68-$11.52Cash:$13.30
Cash Flow/Inv:-$61.26Working Cap:-$105.02

Competition
Although the Company's share of the desktop PC segment of the HDD market has increased steadily since the first quarter of 1997, this market segment and the HDD market in general are intensely competitive and characterized by rapid technological change and rates of product and technology obsolescence, dramatic shifts in market share and significant erosion of ASPs, and as such there can be no assurance that the Company will be able to improve on, or prevent the erosion of, the Company's present share of the desktop PC HDD market. The Company presently competes primarily with manufacturers of 3.5-inch HDDs, including Fujitsu, Quantum, Samsung, Seagate and Western Digital, most of which have a larger share of the desktop HDD market than the Company. Other companies, such as IBM, will be significant competitors in one or more of the markets into which the Company plans to expand its product portfolio, and could be significant competitors of the Company in its current market should they choose to commit significant resources to providing HDDs for the desktop HDD market.

Business Plan
Maxtor seeks to be the dominant provider of HDDs to leading PC OEMs, distributors and retailers. Maxtor's strategy to achieve this goal includes the following elements: (I) Effectively Integrate New Technology, (ii) Leverage Design Excellence, (iii) Capitalize on Flexible Manufacturing, (iv) Increase Market Share With Leading PC OEMs, (v) Maintain Customer Satisfaction and (vi) Broaden Product Portfolio.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness, for capital expenditures, working capital and for general corporate purposes.

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