This article is from the storage FAQ part1, by Rodney D. Van Meter with numerous contributions by others.
I believe flopticals use an optical tracking mechanism to improve ordinary magnetic head positioning and therefore density. The Compaq/3M/Matsushita floptical floppies actually hold 120MB formatted (according to the August 95 Byte), and can read and write standard 1.44MB floppies and read 720KB floppies. (John Brock, jbrock@panix.com, 8/95) Supposed to be available Dec. '95?
 
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