Obducat enters into agreement with Samsung Electronics

Obducat AB has entered into an agreement with Samsung Electronics regarding production of stampers for the development of Advanced Optical Discs (AOD).

Within this agreement, Obducat will deliver stampers, which are to be used by Samsung for the development of next generation Blu-ray format. The storage capacity of this new format will be 100GB per layer, in comparison with today's capacity of 25GB. Pending a successful outcome of Samsungs development activities, Samsung has the intention to invest early 2006 in own EBR capacity for production of stampers.

In order to facilitate the execution of these joint development activities with Samsung and in order to ensure an optimal usage of available project resources, a re-allocation of resources towards AOD and the Samsung project will be carried out. This implicates a termination of the EBR activities Obducat has been engaged in together with TDK regarding patterned media for hard drives.

However, Obducat will commence other on-going activities with companies within the hard drive industry, companies who are deemed to be closer to industrialization, from a technical as well as a commercial point-of-view.

Patrik Lundström, CEO Obducat, comments: "By means of the renewal of the EBR products, Obducat has been able to verify a capability to produce stampers enabling the hard drive industry to produce hard drives with NIL with such a high storage capacity, that this industry will be in a position to fulfil its product road map. With these results at hand, it was a logical as well as a necessary decision to discontinue activities with TDK in favour of other on-going activities with other hard drive industry players".