Seagate Revenues to Be Around 17% Less Than Expected for the December Quarter

On December 10, 2008, at the Barclays 2008 Global Technology Conference, executives of Seagate Technology will provide investors with an update regarding current conditions in the hard drive industry and the Company’s expected financial results for its second fiscal quarter of 2009, which ends January 2, 2009.

Specifically, the Company expects to communicate the following:

• Due to lower demand for its products, a more competitive pricing environment and limited demand visibility, revenue for the current quarter is now expected to be in the range of $2.3 – $2.6 billion. Consequently, operating results are expected to be below previous expectations communicated on October 22, 2008.
• That the Company is accelerating its on-going plans to rationalize production capacity and improve its overall cost structure. The Company expects to provide additional information regarding these plans by mid-January.

As is typical, the demand and pricing environment during the remainder of the month of December will be critical in determining the Company’s operating results for its second fiscal quarter of 2009.