Settlement Agreement Entered with Seagate

Rodime PLC
27 January 2000






RODIME PLC ('Rodime' or 'the Company')

RODIME AND SEAGATE ENTER INTO SETTLEMENT AGREEMENT

The Board of Rodime is pleased to announce that it has today agreed to settle
the  Company's long-running legal dispute with Seagate Technology Inc.  Seagate
will pay to Rodime by wire transfer tomorrow the sum of $45 million in full  and
final settlement and each party has, without admission of liability, discharged
all claims against each other in relation to the disputed patents.

The Board of Rodime further announces that the Company has negotiated with Bank
of Scotland redemption of all its outstanding loan stock and overdraft amounting
in total to $34 million in exchange for payment of the sum of $27.5 million out
of the net proceeds of the settlement. Bank of Scotland is continuing as the
Company's bankers and has agreed to provide a new working capital facility of $1
million. After making provision for estimated outstanding tax and other ongoing
liabilities the company has a positive cash position of approximately $7 million
in addition to the new overdraft facility.

The  Company  now  has adequate financial resources to conduct an  infringement
analysis of its remaining digital servo patents and to determine their licensing
potential.

The Company has achieved financial independence and positive net worth and the
Board is considering other opportunities to improve shareholder value.  The
Company recognises the significant contributions made by Bank of Scotland,  in
particular Gavin Masterton, and Noble Grossart, the  Company's  financial
advisers, in  this long-running and difficult litigation and to the
re-positioning of the Company.


Press enquiries:

David Mathewson, non-executive director                 (011 44) 131 226 7001
Peter Bailey, managing director             27/28 Jan - (011 44) 131 557 4114
                                            after 28 Jan - [phone] 8477