EMC #1 in External Storage Systems Revenue for Second Consecutive Year, Analyst Firm Reports

EMC Led Market for 8th Straight Quarter; #1 Again in NAS, SAN, Networked Storage Segments


Hopkinton, Mass.-Thursday, March 2, 2006, EMC Corporation, the world leader in information management and storage, led the worldwide External Disk Storage systems market in revenue for the second consecutive year in 2005, according to a new report from IDC [a].

In the fourth fiscal quarter of 2005, EMC led the worldwide External Disk Storage systems market for the eighth consecutive quarter. EMC also was #1 in NAS (network attached storage) for the seventh straight quarter, growing revenues more than four times faster than its nearest competitor in the fourth quarter and extending its lead with 38% revenue share in 2005.

2005 revenue from EMC and co-branded Dell/EMC external disk storage systems, combined, grew by 18% year-over-year and represented 27% of the total External Disk Storage market, according to IDC. In the fourth quarter, EMC and co-branded Dell/EMC external disk storage systems revenue, combined, grew by 24% compared to the year-ago quarter and represented 28% of the total External Disk Storage market in the fourth quarter.

Howard Elias, EMC Executive Vice President, Global Marketing and Corporate Development, said, “EMC’s commitment to delivering innovative information lifecycle management solutions is clearly paying off. Our leading storage platforms form the foundation of a successful ILM strategy. Businesses and organizations of all sizes are tackling the challenge of relentless information growth while seeking to simplify and make their information infrastructure as cost effective as possible. Customers have embraced the new storage platform technologies we delivered in 2005 and we fully expect our investment and level of execution in this area to continue through 2006 and beyond.”

2005 and Fourth Quarter Highlights

For both the full year and the fourth quarter, EMC was #1 in External Disk Storage Systems revenue with 21% share and 22% share respectively. EMC led in every major External Disk Storage market segment including External RAID, Networked Storage, Open/iSCSI SAN (storage area networks) and NAS in the fourth quarter and 2005.

In 2005, EMC led in external RAID storage revenue for the ninth consecutive year with 22% revenue share and was again #1 in networked storage with 27% share. EMC also led in External RAID disk storage systems revenue in Western Europe and Asia Pacific in 2005 [b]. EMC continued to take revenue share in the NAS market throughout the year, increasing its share to 38% in 2005, outpacing the growth of the market. In the rapidly growing iSCSI SAN market, EMC grew revenues nearly twice as fast as its largest competitor in the fourth quarter [c].

About EMC

EMC Corporation (NYSE: EMC) is the world leader in products, services and solutions for information management and storage that help organizations extract the maximum value from their information, at the lowest total cost, across every point in the information lifecycle. Information about EMC’s products and services can be found at www.EMC.com.
For more on EMC news, events, and recent media coverage visit the news section of EMC.com. Note to editors: For further information about this release contact EMC Public Relations at pr@emc.com

[a] IDC “Worldwide Quarterly Disk Storage Systems Tracker, March 2006”; EMC share includes factory revenue from “EMC” branded storage systems only and excludes sales of re-branded EMC systems sold by EMC partners including Dell, Fujitsu-Siemens, Samsung and Langchao Electronic Information Industry Corp., Ltd.

[b] The geographic segment “Asia Pacific” excludes Japan.

[c] All comparisons included in this release are year over year unless noted.

This release contains “forward-looking statements” as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) risks associated with acquisitions and investments, including the challenges and costs of integration, restructuring and achieving anticipated synergies; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (vi) component and product quality and availability; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) insufficient, excess or obsolete inventory; (ix) war or acts of terrorism; (x) the ability to attract and retain highly qualified employees; (xi) fluctuating currency exchange rates; and (xii) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this release.

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