Seagate Technology Completes Acquisition of Maxtor Corporation

Seagate Technology Completes Acquisition of Maxtor Corporation

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.”

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