XBOX HARD DRIVE FROM SEAGATE
November 7, 2000

Seagate Technology has been chosen as the supplier of hard drives for Microsoft's Xbox. Microsoft awarded Seagate a multi-year contract to provide hard drives for the Xbox, beginning in June 2001 and continuing through mid-year 2003.

"As a leader in disc drives optimized for consumer electronics applications, Seagate is a logical choice to help Microsoft bring inventive technology to the lucrative game console market," said Todd Holmdahl, general manager of Xbox Hardware at Microsoft. "Seagate's innovative Consumer Electronics storage technology enhances the superior experiences that will be brought to life on Xbox."

"This Seagate-Microsoft agreement is a clear boost to Seagate in maintaining its position as the number one storage supplier for Consumer Electronics," said Mark Geenen, president of data storage market research firm TrendFocus. "Seagate has invested significant time and resources in its consumer strategy, leading to unmatched shipments of more than one million hard drives for the CE market. While the market will be hotly contested in the coming years, Seagate's investments in both design and implementation of HDD technology in the CE market should pay dividends down the road."

"This is an important design win for Seagate as we work to increase our Consumer Electronics leadership," said Brian Dexheimer, Seagate executive vice president of Worldwide Sales, Marketing and Customer Service. "The popularity of video games as entertainment is undeniable. Currently, there are about 29 million game console players. Eighty-six percent of U.S. families with teens have one or more game consoles. As a category, games represent 50 percent of consumer PC software sales. This is an opportunity for volume growth in disc drive shipments as the Xbox attracts a large portion of this audience."

"The Xbox is a strategic product for Microsoft. As a long-time partner, Microsoft knows that Seagate provides advanced technical and operational capabilities," said Dexheimer. "Seagate has the most extensive experience helping the world's leading CE device makers innovate during product design and integration. Once again, we're working with an industry leader to help develop a new market and utilize disc drives (in) a new and exciting way."