Maxell Expects Increase in Magnetic Media Prices

FAIR LAWN, NJ, September 14, 2004 - Maxell Corporation of America said today that it believes price increases are inevitable on all magnetic media products in its data storage, professional and consumer divisions due to rising prices for raw materials and other distribution and supply chain cost increases.

"We are in an extremely competitive business environment that has been very beneficial to our customers with respect to product pricing," said Don Patrican, executive vice president of Maxell. "However, raw materials costs continue to escalate as do other costs of doing business. These economic realities have forced us to re-examine our magnetic media pricing models to ensure the strategic long-term stability of our company. The specifics regarding the implementation of the revised pricing policy are in the final stages of development."

The company said anticipated price increases will affect computer media products such as SuperDLTtape and LTO Ultrium tape, professional-use tape and consumer products, such as VHS and camcorder tape.

About Maxell

Maxell Corporation of America is a full-line manufacturer of digital and analog media products for the data storage, consumer and broadcast markets. Maxell's Data Storage Group offerings include DLTtape, Super DLTtape, LTO and DDS data cartridges. Additional information on Maxell can be found on the company's web site: http://www.maxell-data.com.

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LTO and Ultrium are trademarks of HP, IBM and Certance LLC in the US, other countries or both. DLTtape and Super DLTtape are trademarks or registered trademarks of Quantum Corporation in the USA and other countries. All other trademarks and registered trademarks in this document are the properties of their respective owners.