Quantum Responds to VIEX Nomination of Five Directors at Board

Quantum Corp. responded to the notice it received from VIEX Capital Advisors, LLC nominating five candidates for election to its board of directors at the company’s annual meeting of stockholders:

Quantum is committed to maintaining a highly qualified and experienced board that is focused on driving value for all stockholders. We seek at all times to work constructively with our stockholders and consider their input on our business strategy and strategic alternatives to create stockholder value.

For the past three years, our nine-member board has included a large stockholder and four other individuals nominated as part of a previous agreement with another large stockholder. In addition, our board and management have engaged in numerous discussions with VIEX over the past several months and have provided board observer rights to representatives of VIEX so they could participate in board meetings and deliberations.

We have also conveyed to VIEX that we are open to making substantial changes to the composition of the board, so that representatives designated by VIEX and new, independent directors would together constitute a majority of the board. VIEX has rejected these proposals.

Although we are open to VIEX having meaningful representation on our board, we do not believe it would be in the best interests of Quantum and its stockholders or consistent with the board’s fiduciary duty to allow VIEX – which owns 11% of the company’s shares – to control our board and to dictate our business strategy without paying a proper premium to all remaining stockholders.

Quantum is in the midst of executing a well-defined strategic plan, focused on growing our business in scale-out tiered storage and data protection solutions. Although we recognize that the overall storage market continues to present challenges to Quantum and the industry generally, our momentum has been evident in our most recent three fiscal quarters, with year-over-year growth in both revenue and profitability, the $170 million financing package we secured and strong prospects for continued improvement in our business and financial performance.