Georgia Bard's Corner

[Georgia Bard]

Jmac61 (Nasdaq: KMAG) I hope you heeded what I was telling ... http://www.investorshub.com/boards/replies.asp?msg=153954

KMAG inside and institutional selling vs internet hype:

Komag Announces Voluntary Chapter 11 Reorganization Filing

SAN JOSE, Calif., Aug. 24 /PRNewswire/ --
Komag, Incorporated (Nasdaq: KMAG), the largest independent producer of media
for disk drives, today announced that it has filed a voluntary petition for
reorganization under chapter 11 of the U.S. Bankruptcy Code. The company
expects to continue operations during the chapter 11 process. Prior to the
filing, the company reached agreement in principal with its senior bank debt
holders on a plan of reorganization that will be filed shortly. The plan
includes a commitment by the senior lenders to provide a liquidity facility to
bolster the company's working capital thus ensuring the company's ability to
meet its financial commitments after the bankruptcy filing. By entering into
a chapter 11 case, the company will have a centralized forum for negotiations
with its other creditor constituencies and, ultimately, the authority of the
court to confirm a plan of reorganization that will restructure the company's
debt.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990816/KMAGLOGO )
"The company intends, with the support of the senior lenders, to continue
operations without interruption during the restructuring process" stated
T.H. Tan, Komag's chief executive officer. "Komag Material Technology, Inc.
in Santa Rosa, California and Komag USA (Malaysia), Sdn., with operations in
Penang and Sarawak Malaysia, are not parties to the chapter 11 filing. As a
result, the company anticipates that the operations of these and other
subsidiaries will not be impacted. These subsidiaries will carry on their
business and continue to make scheduled payments to their suppliers as before
the bankruptcy filing date."
Mr. Tan continued, "The company has operated for several years with a
heavy debt burden, including approximately $202 million of senior bank debt
and $230 million in notes assumed as a result of its merger with
HMT Technology Corporation in October 2000. To fully exploit the inherent
value in the company's operations and return to profitability, the company
must reduce its indebtedness to a more manageable level through a
restructuring of its balance sheet. Over the past year, in addition to
implementing a number of successful initiatives to reorganize the company's
operations to increase margins and improve efficiency, company management has
sought to accomplish a financial restructuring through consensual arrangements
outside of court. At this time, however, we have determined that -- despite
the ongoing success of our operational reorganization -- it is clear that the
protections of the Bankruptcy Code are necessary to achieve and implement an
effective financial restructuring. We believe the plan that will be filed
fairly allocates value to all stakeholders and are committed to seeking
approval for this plan as expeditiously as possible."

About Komag:
Founded in 1983, Komag is the world's largest independent supplier of
thin-film disks, the primary high-capacity storage medium for digital data in
computers and consumer appliances. Komag's advanced development capability
and high-volume, low-cost manufacturing expertise provides high quality,
leading-edge disk products at a low overall cost to its customers. These
attributes enable Komag to partner with customers in the execution of their
time-to-market design and time-to-volume manufacturing strategies.
Supplementing its core disk business, Komag has launched a diversification
program that will leverage the company's knowledge of magnetic recording and
its ultra-high precision manufacturing capabilities.
For more information about Komag, visit Komag's Internet home page at
http://www.komag.com or call Komag's Investor Relations 24-hour Hot Line at
888-66-KOMAG or 408-576-2901.

Forward Looking Statements
This press release contains certain "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and are
subject to the safe harbors created thereby. These statements represent the
company's current judgment and include, but are not limited to, restructuring
its debt and continuing uninterrupted operations of the company and its
subsidiaries. The company's actual results for future periods could differ
materially from those projected in such forward-looking information. Factors
that could cause actual results to differ include, but are not limited to,
variability in demand for and average selling price of disks, the impact of
demand variation on factory utilization, the company's ability to achieve its
operating yield, cost and profitability targets, the company's ability to
satisfy customer qualification requirements, the company's ability to
restructure its existing debt obligations and the other factors described in
the company's reports filed with the Securities and Exchange Commission,
including, but not limited to, its most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Komag undertakes no obligation to update
forward-looking statements to reflect events or circumstances occurring after
the date of such statements.



:=) Gary Swancey