Seagate Technology Completes Acquisition of Maxtor Corporation

For Immediate Release


SCOTTS VALLEY, Calif.—22 May 2006—Integration to be Substantially Completed by Early Calendar 2007

EPS Accretion Target of 10-20% Confirmed

Seagate Technology (NYSE: STX) today announced that it has completed its acquisition of Maxtor Corporation. The combined company retains the Seagate name and continues to be listed on the New York Stock Exchange as "STX." Maxtor common stock has ceased to trade on the New York Stock Exchange.

The integration of former Maxtor operations into Seagate is expected to be substantially completed by early calendar 2007, with an earnings per share accretion target of 10-20% after the first year of combined operations.

"This is an exciting time for Seagate and for our industry," said Bill Watkins, Seagate president and CEO. "The demand for storage is at record levels globally and is continuing to grow. The past twenty years was about digitizing the workplace; the next decade will be focused on digitizing your lifestyle. As a result of this acquisition, we believe Seagate has the enhanced scale and capacity to better drive technology advances and accelerate delivery of a wide range of differentiated products and cost-effective solutions to a growing customer base."

"Our integration teams have made excellent progress on addressing customer requirements, continuity of supply, the optimization of manufacturing and production capacity, and workforce planning," said Dave Wickersham, executive vice president and COO. "As a result we have an opportunity to substantially complete our integration plan in six to nine months."

"We are encouraged by the dialogue we've had with customers and are confident that the combined company will deliver more compelling products and services more efficiently to them," said Brian Dexheimer, executive vice president, Global Sales and Marketing. "Our integration plan is designed to ensure revenue retention by executing a seamless transition to Seagate products for Maxtor customers and by continuing to meet the product, supply, quality and cost demands of our total combined customer base."

Seagate estimates that approximately 50% of Maxtor's worldwide employees will be offered positions with the combined company moving forward, with the vast majority of those located in Asia Pacific manufacturing operations.

Adding to Seagate's own line of branded products, Seagate will retain a full range of Maxtor branded retail solutions. Maxtor is the leading brand name in the retail space and it will significantly strengthen Seagate's overall position in this burgeoning market. The combination of the two brands and the associated product lines represents the widest, most differentiated storage offering available to consumers today.

Conference Call
Company management will hold a conference call to discuss completion of the acquisition today at 8:00 a.m. Eastern Time. The conference call can be accessed live via telephone as follows:

USA: 877-223-6202
International: 706-679-3742

A replay of the call will be available beginning at 11:00 a.m. Eastern Time today through May 29, 2006 at 11:59 p.m. Eastern Time, and can be accessed online at or by telephone as follows:

USA: 800-642-1687
International: 706-645-9291
Access code: 9162676

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