1

                                                                    EXHIBIT 99.3



WESTERN DIGITAL AND IBM SIGN DEFINITIVE AGREEMENT FOR HARD DISK DRIVE COMPONENT
SUPPLY AND TECHNOLOGY, DESIGN LICENSING

RELATIONSHIP INTENDED TO COMBINE IBM'S INDUSTRY-LEADING GMR HEADS, DESIGNS,
OTHER HDD COMPONENTS WITH WD'S HIGH-VOLUME HARD DISK DRIVE EXPERTISE

IRVINE, CA -June 14, 1998-Western Digital today announced it has signed a
definitive agreement with IBM to enter into a broad-based hard disk drive
component supply and technology and design licensing relationship, completing
plans announced in early May. The definitive agreement will be final upon IBM's
board of directors' approval to be obtained by the end of this month.

Under the agreement, IBM will supply Western Digital with its leading
areal-density giant magnetoresistive (GMR) heads, as well as other electronic
components which include IBM embedded firmware. Western Digital will use IBM
technology and components--and in some cases, IBM HDD designs--in its family of
WD Caviar desktop drives, simultaneous with IBM's deployment of these
technologies and components.

Western Digital Chairman, President and Chief Executive Officer Chuck Haggerty
said, "The technology and components made available to us through this
wide-ranging agreement will help Western Digital re-establish and maintain
time-to-market and time-to-volume leadership in the very competitive desktop
hard drive industry. We look forward to rapidly developing desktop hard disk
drives featuring IBM components and designs and introducing them before the
middle of next calendar year."

Western Digital Corporation is a leader in information storage products and
services. The company designs and manufactures hard drives for personal and
enterprise-wide computing, and markets them to leading systems manufacturers and
selected resellers under the Western Digital brand name. Western Digital is the
first Fortune 500, multinational company to have been awarded company-wide ISO
9001 registration, linking all WD organizations with a consistent global
standard for quality processes. The company was founded in 1970 and has long
been noted for its storage and end-market systems-level design knowledge. The
company's World Wide Web home page can be found at
http://www.westerndigital.com.

IBM Storage Systems Division (SSD) offers customers worldwide a comprehensive
range of industry-leading software and hardware storage products. These are
offered through IBM, as well as a large network of IBM Business Partners and
Original Equipment Manufacturers (OEMs). Headquartered in San Jose, Calif. SSD
has worldwide responsibility for the development, manufacturing, marketing and
field support for its storage products. SSD is a division of IBM Corporation
headquartered in Armonk, New York. For more information abut IBM storage
solutions, go to the World Wide Web at http://www.ibm.com/storage.



   2

This release contains forward-looking statements, including statements related
to the supply of IBM components and the licensing of technology to Western
Digital, utilization of such technology by Western Digital, and time-to-market
and time-to-volume leadership in the desktop hard drive industry. These
statements are based on current management expectations, and actual results may
differ materially as a result of several factors, including: when and if the
definitive agreement is approved by IBM's board of directors; successful
delivery of the IBM technology pursuant to the agreement and successful
incorporation of such technology in Western Digital's future products; future
technology developments and other competitive factors in the hard drive
industry; business conditions and growth in the personal computing industry; and
other factors discussed in Western Digital's form 10-K for the year ended June
28, 1997, its recent form 10-Qs, and its other SEC filings. Neither Western
Digital nor IBM undertakes any obligation to update forward-looking statements
to reflect events or circumstances occurring after the date of such statements.

IBM is a registered trademark of International Business Machines Corporation.
All other trademarks are property of their respective owners.