Features - Financial Plays Of The Week:

LTO PROGRAM ANNOUNCES AVAILABILITY OF LTO GENERATION 3 LICENSES

Continuing the roadmap of doubling speed and capacity, the Linear Tape-Open (LTO) Program announced the availability of licenses for the LTO Ultrium format Generation 3 specifications to storage mechanism and media manufacturers.

With the availability of Generation 3 specifications, Certance, HP and IBM -- the three technology provider companies (TPCs) for the LTO Program -- continue on track with the LTO technology roadmap published in 1998 to advance an adaptable, scalable and powerful open format tape technology for users in the growing midrange tape category.

"Since its inception, the LTO program has demonstrated an uncompromising commitment to delivering the LTO roadmap on or ahead of schedule," said Bob Wilson, vice president of the Nearline Storage Division at HP. "With this strong track record it should be no surprise that the third consecutive generation of the LTO Ultrium format will be delivered on time and with double the capacity and improved performance over the current generation."

There is typically an 18 to 24 month period between new generations of LTO technology. Products based on the LTO Ultrium format Generation 3 are expected to be available in the second half of 2004 or early 2005.

The LTO Ultrium format -- the leading midrange super tape drive technology based on analyst data -- upholds the LTO Program's road map of providing users with a high capacity and performance format based on an open-architecture design. Open specification means customers have the freedom to choose from multiple suppliers of compatible technology that include unique feature sets to meet individual end user needs.

The LTO Ultrium format Generation 3 doubles storage capacity over Generation 2, increasing to 800GB compressed from 400GB (assuming a 2:1 compression). Transfer rates improve to 80-160MB per second from 40-80MB per second in Generation 2 compressed (assuming a 2:1 compression). The LTO Ultrium format Generation 3 drives also offer backwards-compatible read-and-write capability with the Ultrium format Generation 2 cartridges and backward read capabilities with Generation 1 cartridges, helping to protect the investment customers have made in LTO technology.

"LTO technology continues to out-duel the competition by delivering an open-specification based format that offers outstanding reliability, performance and ease of implementation," said W. Curtis Preston, founder and president of The Storage Group. "I work with large companies every day on storage matters, and it's clear to me that LTO is entrenched in the market and is here to stay."

Based on a Gartner Dataquest report: Tape Drive Market Shares, 2003, by Fara Yale, research vice president (March 24, 2004), LTO Ultrium tape drive shipments held a greater than 2:1 ship-share lead over the SDLT format in 2003, building upon the nearly 2:1 lead LTO technology has shown in 2001 and 2002.

"Customer confidence in the LTO Ultrium format couldn't be higher, and they have voted with their wallets," added Wilson. "The TPCs are proud of the continued market leadership of the LTO Ultrium format, and we look forward to ongoing market growth with our collective commitment to future generations of LTO technology."

The LTO Ultrium format is the only super drive technology based on an open specification, providing the benefits of competition while supporting data interchange. With an impressive roster of over 30 licensees, the LTO open specification is available for license to any manufacturer giving users the unique ability to choose from a number of tape drive and data cartridge offerings. This pro-competitive environment fosters technological innovation, competitive pricing and multiple sources of compatible products.