Calculate the unlevered beta and the unlevered cost of capital for Seagates operating assets based on peer information in Exhibit 3.

658 799 Exhibit 3 Summary Financial Data on Publicly Traded Hard Disk Drive Manufacturers Seagate Technology Quantum HDD Western Digital Maxtor Jun97 Jun98 Jun99 Income Statement ($ million) Mar97 Mar98 Mar99 Jun97 Jun98 Jun99 Dec96 Dec97 Dec98 Sales $8,940 $6,819 $6,802 $4,591 Cost of Goods Sold $4,615 $3,599 $4,178 $3,542 $2,767 $799 $1,424 $2,409 6,918 5,830 5,250 4,093 4,242 3,308 3,464 3,187 Gross Margin 2,562 842 1,287 2,034 2,022 989 1,552 498 373 291 714 355 205 -43 137 375 EBITDA 1,521 451 1,011 146 -6 -61 365 -41 -188 -191 -32 134 Depreciation + Amortization 501 589 613 109 68 71 63 107 131 47 66 74 Operating Profit 1,020 - 138 398 37 -74 -133 302 -148 -319 -238 -97 60 Interest Expense 35 51 48 20 11 9 0 12 33 18 37 29 Net Income -530 1,176 41 -53 - 153 268 -290 -493 -256 -110 31 Capital Expenditures 890 709 603 164 119 82 156 199 107 54 82 95 Balance Sheet ($ million) Cash and Equivalents $2,284 $1,827 $1,623 NA $325 $524 $208 $460 $226 $31 $33 $258 Net Receivables 1,041 872 NA 586 392 546 369 273 89 248 318 Inventories 808 508 451 NA 212 148 224 187 144 81 155 153 Net Property. Plant, and Equipment 1,787 1,669 1,687 NA 228 199 248 347 238 92 99 108 TOTAL ASSETS 6,723 5,645 7,072 NA 1.646 1,470 1,307 1,443 1,022 315 555 Accounts Payable 863 577 714 NA 401 342 418 330 336 110 207 428 Short-term Debt 1 1 1 NA 0 0 0 0 10 204 245 5 Long-term Debt 702 703 NA 109 115 0 534 224 145 Shareholders' Equity 3.476 2,937 3,563 NA 906 791 620 318 -154 -327 -221 Net Working Capital 2.717 2.241 1,773 364 464 72 93 440 170 NA 739 709 Capital Market Information (S million) $5.861 $5,844 Year-end Market Equity Capitalization 58,620 NA NA NA $2.716 $1,043 $589 NA NA $1,320 1.2 0.8 Equity Betas 0.6 1.0 704 110 Total Book Debt (3/10/00) 236 BBB B2 Debt Rating B2 B1 64.25 8.875 Stock Price (3/10/00)S/share 5.1875 11.625 227.2 82.6 Shares Outstanding (3/10/00)-millions 129.1 113.2 Source: Data compiled from Compustat and SEC Filings "Quantum HDD was floated in August 1999 as a separately traded subsidiary of Quantum Corporation, containing just the hard disk drive operations. As a result, there is no information on historical stock prices or market capitalization, prior to that date. "Net Working Capital = Total Current Assets - Total Current Liabilities (excluding Short-Term Debt). 'Equity betas estimated using daily returns over the six-month period from 0/1/00 to 3/1/00. 863 704 519 229 169 114 658 799 Exhibit 3 Summary Financial Data on Publicly Traded Hard Disk Drive Manufacturers Seagate Technology Quantum HDD Western Digital Maxtor Jun97 Jun98 Jun99 Income Statement ($ million) Mar97 Mar98 Mar99 Jun97 Jun98 Jun99 Dec96 Dec97 Dec98 Sales $8,940 $6,819 $6,802 $4,591 Cost of Goods Sold $4,615 $3,599 $4,178 $3,542 $2,767 $799 $1,424 $2,409 6,918 5,830 5,250 4,093 4,242 3,308 3,464 3,187 Gross Margin 2,562 842 1,287 2,034 2,022 989 1,552 498 373 291 714 355 205 -43 137 375 EBITDA 1,521 451 1,011 146 -6 -61 365 -41 -188 -191 -32 134 Depreciation + Amortization 501 589 613 109 68 71 63 107 131 47 66 74 Operating Profit 1,020 - 138 398 37 -74 -133 302 -148 -319 -238 -97 60 Interest Expense 35 51 48 20 11 9 0 12 33 18 37 29 Net Income -530 1,176 41 -53 - 153 268 -290 -493 -256 -110 31 Capital Expenditures 890 709 603 164 119 82 156 199 107 54 82 95 Balance Sheet ($ million) Cash and Equivalents $2,284 $1,827 $1,623 NA $325 $524 $208 $460 $226 $31 $33 $258 Net Receivables 1,041 872 NA 586 392 546 369 273 89 248 318 Inventories 808 508 451 NA 212 148 224 187 144 81 155 153 Net Property. Plant, and Equipment 1,787 1,669 1,687 NA 228 199 248 347 238 92 99 108 TOTAL ASSETS 6,723 5,645 7,072 NA 1.646 1,470 1,307 1,443 1,022 315 555 Accounts Payable 863 577 714 NA 401 342 418 330 336 110 207 428 Short-term Debt 1 1 1 NA 0 0 0 0 10 204 245 5 Long-term Debt 702 703 NA 109 115 0 534 224 145 Shareholders' Equity 3.476 2,937 3,563 NA 906 791 620 318 -154 -327 -221 Net Working Capital 2.717 2.241 1,773 364 464 72 93 440 170 NA 739 709 Capital Market Information (S million) $5.861 $5,844 Year-end Market Equity Capitalization 58,620 NA NA NA $2.716 $1,043 $589 NA NA $1,320 1.2 0.8 Equity Betas 0.6 1.0 704 110 Total Book Debt (3/10/00) 236 BBB B2 Debt Rating B2 B1 64.25 8.875 Stock Price (3/10/00)S/share 5.1875 11.625 227.2 82.6 Shares Outstanding (3/10/00)-millions 129.1 113.2 Source: Data compiled from Compustat and SEC Filings "Quantum HDD was floated in August 1999 as a separately traded subsidiary of Quantum Corporation, containing just the hard disk drive operations. As a result, there is no information on historical stock prices or market capitalization, prior to that date. "Net Working Capital = Total Current Assets - Total Current Liabilities (excluding Short-Term Debt). 'Equity betas estimated using daily returns over the six-month period from 0/1/00 to 3/1/00. 863 704 519 229 169 114