STORAGE

LOUISVILLE, CO -- StorageTek (Storage Technology Corp.) (NYSE: STK) today announced fourth quarter 2001 net income on a pro forma basis of $37.9 million, or $0.36 diluted earnings per share. The pro forma numbers exclude a net pre-tax credit of $3.3 million associated with litigation and other special one-time items. Revenue for the fourth quarter of 2001 was $566.4 million compared to $498.0 million for the third quarter of 2001 and $601.4 million for the fourth quarter of 2000. Net income for the fourth quarter of 2001 was $40.0 million, or $0.38 diluted earnings per share under U.S. generally accepted accounting principles (GAAP), compared to fourth quarter 2000 net income under GAAP of $30.8 million, or $0.30 per share. On a pro forma basis, net income for fiscal year 2001 was $65.1 million, or $0.62 diluted earnings per share, compared to pro forma net income for fiscal year 2000 of $25.5 million, or $0.25 per share. Revenue for 2001 was $2.05 billion compared to $2.06 billion for 2000. On a GAAP basis, net income for fiscal year 2001 was $67.2 million, or $0.64 diluted earnings per share, compared to a GAAP net loss for fiscal year 2000 of $1.8 million, or $0.02 per share. "StorageTek was able to successfully execute on our strategy and deliver credible revenue performance in 2001," said Patrick Martin, chairman, president and chief executive officer of StorageTek. "This year we were able to improve shareholder value as we made sound investments in our distribution channels and storage solutions. We're very optimistic about StorageTek's potential and market opportunity." For fiscal year 2001, total revenue on a constant currency basis was up 5 percent in Europe, 11 percent in Asia Pacific, 9 percent in Latin America and flat in North America. The direct sales force accounted for 59 percent of product revenue in 2001, up from 57 percent in 2000. Financial highlights for 2001 include an increase in the cash balance to $453 million, up from $280 million at the end of 2000. Net cash from operating activities for fiscal year 2001 was in excess of $260 million. "We were able to realize additional benefits through financial disciplines in 2001 which resulted in strong cash flow and improved financial metrics," said Robert Kocol, chief financial officer for StorageTek. "We believe we have established the foundation for solid earnings power and look forward to 2002." For more information visit www.storagetek.com