GS Magicstor Inc. Press Release 07/01/04

LAS VEGAS—(BUSINESS WIRE)—Jan. 7, 2004—GS Magicstor Inc. today introduced its new series of 1” Hard Disk Drives (HDDs) with storage capacities up to 4.8GB, the largest capacity available in the 1” form factor. This exciting new product launch affirms GS Magicstor’s leading position as a global pioneer in 1” HDD technology.

“By using the same, current technologies available for the high-volume hard drive production, the Magicstor 1” HDD is able to meet today’s increasing demands for high-capacity handheld electronic devices such as the Digital Cameras, PDAs, laptops, MP3 players, handheld digital video players, and other portable consumer electronics,” said David Wu, CEO of GS Magicstor Inc.

Available in capacities from 2.2GB to 4.8GB, Magicstor’s 1” HDDs feature multi industry-standard interfaces, such as CFII, USB and IDE/ATA, providing both general users and OEM/ODM manufacturers with dynamic new application opportunities.

“The Magicstor 1” family has successfully created cost-effective storage solutions for products with revolutionary features and functions, we are very excited about the new opportunities for low cost USB portable storage products,” added David Wu.

Building the success of its flagship 1” HDD at 2004 International CES, Magicstor is announcing the developing of a 0.8” HDD for the cell phone and audio/visual products industry. Smaller than the 1” HDD currently produced by GS Magicstor and by Hitachi Global Storage Technology, and less than half the size of the 1.8” hard drive, Magicstor’s 0.8” HDD is set to revolutionize new consumer electronic products.

GS Magicstor Inc. is the premier member of China’s official Industrial Development Project in Guiyang, Guizhou, which is emerging as the world’s leading areas of multi-national research and production of next-generation HDD technology. GS Magicstor is producing 1 inch hard drives for both the China internal market and the world market of Digital Consumer Electronic products.