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Seagate Reports Q3

SCOTTS VALLEY, Calif. -- Seagate Technology
(NYSE:STX) today reported revenue of $2.8 billion, GAAP net income of $212
million, and diluted net income per share of $0.37 for the quarter ended
March 30, 2007. Net income and diluted net income per share includes
approximately $62 million of charges associated with recent acquisitions.
Excluding these charges, non-GAAP net income and diluted net income per
share were $274 million and $0.47.

For the nine months ended March 30, 2007 Seagate reported revenue of $8.6
billion, GAAP net income of $371 million and diluted net income per share of
$0.62. Net income and diluted net income per share include charges of
approximately $219 million associated with recent acquisitions and $19
million for the early retirement of the 8% notes. Excluding these charges,
non-GAAP net income and diluted net income per share were $609 million and
$1.02.

"We are disappointed in our results for the March quarter," said Bill
Watkins, Seagate chief executive officer. "We clearly miscalculated the
market, and in this unusually challenging environment failed to deliver the
projected results. However, it is worth noting that the fundamentals of our
business and that of the industry remain solid. Seagate's revenue remained
strong, our balance sheet is healthy, and we continued to generate cash for
ongoing investments in the capital and R&D required for growth. We are
operating at the kind of scale that will allow us to continue to innovate
while driving down costs, and thus exercise a great deal of market
flexibility. Moving forward, we will align spending with the current
outlook, and continue to drive the cost improvements necessary to thrive in
this environment."

Adjustments made to GAAP net income and diluted net income per share can be
found with the financial statements included with this press release.
Additional information relating to the financial results for the third
fiscal quarter of 2007 can be found online at seagate.com.

Business Outlook

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