Seagate Reports Fiscal Q1

SCOTTS VALLEY, Calif. -- Seagate Technology(NYSE:STX) today reported disc drive unit shipments of 47 million, revenueof $3.3 billion, GAAP net income of $355 million, and diluted net income pershare of $0.64 for the quarter ended September 28, 2007. GAAP net income anddiluted net income per share includes approximately $30 million of purchasedintangibles amortization and other charges associated with the Maxtor andEVault acquisitions. Excluding these charges, non-GAAP net income anddiluted net income per share were $385 million and $0.69. Included in bothGAAP and non-GAAP results are restructuring charges of approximately $5million or approximately $0.01 per share.

"Our strong performance in the quarter reflects favorable industryconditions as well as the competitive strength of Seagate's unique platformand commitment to innovation," said Bill Watkins, Seagate chief executiveofficer. "The first fiscal quarter has historically been a strong one forSeagate, and this year, we benefited from unit demand greater than expected.We believe we are well positioned to continue driving year-over-year revenuegrowth, and these record quarterly results demonstrate the effectiveness ofSeagate's business model."

Adjustments made to GAAP net income and diluted net income per share can befound with the financial statements included with this press release.Additional information relating to the financial results for the firstfiscal quarter of 2008 can be found online at seagate.com.

Business Outlook

For the December quarter, Seagate expects to report revenue of $3.4 - $3.5billion, and GAAP diluted net income per share of $0.66 - $0.70. Excludingapproximately $26 million of purchased intangibles amortization and othercharges associated with the Maxtor and EVault acquisitions, non-GAAP dilutednet income per share for the December quarter is expected to fall within therange of $0.71 - $0.75.This guidance does not include the impact of any future acquisitions, stockrepurchases or restructuring activities the company may undertake.

Dividend and Stock Repurchase

The company has declared a quarterly dividend of $0.10 per share to be paidon or before November 16, 2007 to all common shareholders of record as ofNovember 2, 2007.

During the quarter ended September 28, 2007, the company took delivery ofapproximately 10.3 million of its common shares related to its sharerepurchase plan. The average price of the shares delivered to the company inthe June quarter was $24.27. The company has authorization to purchaseapproximately $725 million of additional shares under the current stockrepurchase program.

Seagate Technology Inc.0