(August 7, 2000)

Milpitas, CA - DISC Inc. (NASDAQ: DCSR), a leading manufacturer of automated library solutions for enterprise storage, announced today a strategic OEM partnership with New ATG of France, a leading provider of ultrahigh online capacity, exceeding 16 GBs per disk. Under the new agreement, New ATG will integrate DISC's storage devices into their extensive offering of optical storage solutions. The agreement will include Disc's D150, D245, D285, D525 and D1050 models.

These sophisticated storage devices are utilized to provide both nearline and archival storage for enterprise networks. With random access capabilities, 100-year media shelf life and storage capacities ranging from 728GB to over 5TBs, the DISC product line is perfectly suited to serve as network storage devices. For New ATG customers, the addition of DISC libraries will result in a wider range of optical storage solutions enabling excellent data availability, optimized performance and reliability while increasing system fault tolerance.

"Through our partnership with DISC," said Bruno Epale, President of New ATG, "we will be able to give our customers a migration path from their installed 12" products to the current 5.25" technology. With Disc's product breadth added to our existing product line, we will be more competitive and have the ability to offer large-scale nearline and archive storage devices, including network capabilities."

The OEM partnership will effectively expand the French and European market for the California-based DISC, while providing New ATG with a much broader storage product line for their turnkey, value-added solutions. The ultimate benefit will be to New ATG's customers who will have the opportunity to migrate to an ISO standard system, offering Rewriteable and WORM solutions at an attractive cost.

"New ATG has worked with many prestigious French universities and European research laboratories to establish itself as a leader in the development and production of optical technology products for data storage," said J. Richard Ellis, President and CEO of DISC. "We are very pleased to announce this partnership and to have the opportunity to work with New ATG. Our relationship will give their customers a migration path from older 12" optical technology to the current 5.25" standard and help us increase our overall penetration into the French, and other European markets."

About New ATG

Established in 1984 as Alcatel, Thomson Gigadisc, New ATG is headquarted in Toulouse, the "Silicon Valley of France." New ATG is renown for its strong R&D team of specialists in electronics, optics, micro-mechanics and chemistry. Backed by a portfolio of more than 300 patents, New ATG has advanced to the position of leadership in the development and production of 12" WORM optical storage products developed at their 10,000 square foot ISO 9001-certified production facility, which includes a 5,300 square foot Class A clean room.

Customers seeking more information on New ATG can contact the company at Avenue Eisenhower, BP 1270, F-31047 Toulouse, France. Phone: 33/(0)6 6214 2100 Fax: 33/(0)5 6214 2149 or on the internet: www.newatg.com

About DISC

DISC Incorporated manufactures an extensive family of automated library solutions for enterprise storage. DISC storage devices are designed and built at their ISO 9001 certified plant in Milpitas, California. DISC products range in capacity from 104 GBs to 5.4 TBs and are designed for high performance and maximum reliability.

Customers seeking more information may reach DISC at 1-800-944-3472 or (408)934-7000. www.disc-storage.com