EMC Comes to Quantum’s Rescue

March 31, 2009: With credit markets around the world squeezed tight by the financial crisis, Quantum has turned to EMC and secured a US$100 million to finance its convertible debt.

The company is obliged to refinance the majority of its convertible debt by February 2010, and was struggling to do us until EMC came to the rescue last week.

Quantum’s stock price rocketed up following the news, gaining 92.5 percent, or US37 cents to reach US77 cents.

Quantum licences its deduplication software to EMC for use in some of its networked storage products, and says that it made the investment to ensure Quantum can continue its work on data-storage technology for reducing data redundancies.

“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.”

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