Technology, the world’s leading hard drive company,
confirmed its business outlook provided on July 19, 2005 for the company’s
first fiscal quarter of 2006, ending September 30, 2005.

Assuming a historically normal seasonal pattern in demand for the month of
September, Seagate expects to report revenue and net income comparable to the
$2.18 billion and $280 million reported in the June quarter, excluding the $10
million non-recurring gain realized from a legal settlement. As previously
stated, this outlook excludes costs associated with expensing stock options.

Demand in the consumer electronics, mobile and desktop markets remain
relatively consistent with the company’s expectations as reported at the end
of the June quarter. In the enterprise market, Seagate expects to remain the
supplier of choice with an anticipated market share of approximately 50%, in
line with expectations when the quarter began, although the total available
market appears to be less than originally expected, which was flat from the
June quarter level of 6.9 million units.

Pricing across all product lines has been in line with Seagate’s
expectations and the industry channel inventory level for desktop drives is
approximately four weeks.