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Quantum Corporation: Quantum Secures $100 Million Financing Commitment From EMC to Enable Refinance of Quantum's Convertible De

^{Published on 2009-03-27 06:37:14, Last Modified on 2009-11-03 09:37:49 - Market Wire}
 

SAN JOSE, CA--(Marketwire - March 27, 2009) - Quantum Corp. (NYSE: [ QTM ]), the leading global specialist in backup, recovery and archive, today announced that it has secured a $100 million financing commitment from EMC Corp.(1) (NYSE: [ EMC ]) that Quantum will use to refinance its convertible debt (see separate release issued today, titled "Quantum Commences Tender Offer for its 4.375% Convertible Subordinated Notes Due 2010"). By doing so, Quantum will address a key challenge posed by its current capital structure and the very constrained credit environment: the obligation to refinance a majority of its convertible debt by February 2010. EMC, which licenses Quantum's deduplication software for use in some of its industry-leading networked storage products, made the $100 million financing commitment to help ensure that Quantum can continue to invest in the technology enhancements required by EMC to meet the needs of their customers in this fast-growing sector.

"Today's announcement further reinforces the strength of the Quantum-EMC partnership and the work we've been doing together to bring the benefits of data deduplication to customers," said Rick Belluzzo, chairman and CEO at Quantum. "Despite the significant improvements in operational performance Quantum has made over the past year, our capital structure has clearly been a hindrance in the current economic environment. The financing from EMC will give us greater financial flexibility and enable us to maintain a high level of investment in deduplication and replication technology that can be leveraged by both Quantum and our OEM partners, with compatibility across solutions."

"The partnership with Quantum accelerated EMC's rapid rise to become the world's largest provider of data deduplication solutions," said Rich Napolitano, senior vice president at EMC. "We're fortunate to have the financial strength to execute this strategic investment. By addressing the challenge posed by its capital structure, Quantum will be able to focus more energy on continued innovation and working with EMC to remain front and center in one of the storage industry's hottest trends."

About Quantum

Quantum Corp. (NYSE: [ QTM ]) is the leading global storage company specializing in backup, recovery and archive. Combining focused expertise, customer-driven innovation, and platform independence, Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. This includes the DXi-Series, the first disk backup solutions to extend the power of data deduplication and replication across the distributed enterprise. As a long-standing and trusted partner, the company works closely with a broad network of resellers, OEMs and other suppliers to meet customers' evolving data protection needs. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA 95110, (408) 944-4000, [ www.quantum.com ].

Quantum and the Quantum logo are trademarks of Quantum Corporation registered in the United States and other countries. DXi is a trademark of Quantum Corporation. All other trademarks are the property of their respective owners.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Specifically, without limitation, statements relating to: i) the closing and funding of the EMC loan, and the related benefits and impact of the loan for Quantum; and ii) the use of the proceeds of the EMC loan to refinance Quantum's convertible debt, are forward-looking statements within the meaning of the Safe Harbor. All forward-looking statements in this press release are based on information available to Quantum on the date hereof, and Quantum assumes no obligation to update any such forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause Quantum's actual results to differ materially from those implied by the forward-looking statements. These risks include the risk that closing conditions for the EMC loan or the refinance of Quantum's convertible debt are not satisfied as well as the risks set forth in Quantum's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors," in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 9, 2009 and in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 13, 2008. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

 (1) The closing of the EMC loan is subject to the execution of definitive loan documentation and customary closing conditions.