Maxtor Reports Fourth Quarter Financial Results

MILPITAS, CA, January 31, 2006 — Maxtor Corporation (NYSE: MXO) today announced its financial results for the fourth quarter ended December 31, 2005. Revenue for the fourth quarter was $969 million. The Company reported a net loss of $15.7 million, or $(0.06) per share, for the fourth quarter of 2005. Included in the net loss was a $5.8 million gain from the sale of a building in Colorado, a $2.2 million gain from the sale of an equity security investment and a $2.9 million charge for the cancellation of the Company’s one-inch drive program. Revenue in the fourth quarter of 2004 totaled $1.031 billion. The Company reported a net loss of $70.6 million, or $(0.28) per share, for the fourth quarter of 2004.



“Our fourth quarter results were in line with the guidance we provided during our third quarter conference call in October,” said Dr. C.S. Park, chairman and chief executive officer of Maxtor. “The results reflected seasonally strong unit demand and a slightly improved desktop product mix, partially offset by price declines on our enterprise SCSI drives.”



Drive shipments totaled 13.6 million in the fourth quarter compared with 13.2 million in the third quarter of 2005. The fourth quarter gross profit margin was 9.3% compared with 11.1% in the third quarter. The average selling price in the fourth quarter increased to $71 from $70 in the third quarter. The Company shipped 992,000 SCSI drives in the fourth quarter compared with 975,000 in the third. Drives sold to consumer electronics customers in the fourth quarter totaled 1.3 million compared with 1.1 million in the third quarter.



Fiscal Year 2005 Financial Results



For fiscal year 2005, revenue totaled $3.890 billion. The net loss was $43.3 million, or $(0.17) per share. In fiscal year 2004, Maxtor generated $3.796 billion in revenue and reported a net loss of $183.4 million, or $(0.74) per share. The Company shipped 53.0 million drives in fiscal year 2005 compared with 53.6 million in fiscal 2004.



About Maxtor



Maxtor Corporation (www.maxtor.com) is one of the world’s leading suppliers of information storage solutions. The Company has an expansive line of storage products for desktop computers, near-line storage, high-performance Intel-based servers, and consumer electronics. Maxtor has a reputation as a proven market leader built by consistently providing high-quality products and service and support for its customers. Maxtor and its products can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on the NYSE under the MXO symbol.



Conference Call



Maxtor has scheduled a conference call for analysts and investors today, January 31, 2006, at 2:00 p.m. PT to discuss the fourth quarter 2005 results. Financial information to be discussed on the call will be available on the Company’s website immediately prior to the commencement of the call. The dial-in number for the live call is (800) 374-1806 or (706) 634-2296. The call will be webcast on the Company’s site at www.maxtor.com. There will be a replay available shortly following the call through February 7, 2006. The dial-in number for the replay is (800) 642-1687 or (706) 645-9291, access code: 4257273.



Additional Information



On December 21, 2005, Maxtor announced that it had entered into a definitive agreement with Seagate Technology which provides for Seagate to acquire Maxtor in a merger transaction. In connection with the proposed transaction, Seagate plans to file with the SEC a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus and each of Seagate and Maxtor plan to file with the SEC other documents regarding the proposed transaction. The definitive Joint Proxy Statement / Prospectus will be mailed to stockholders of Seagate and Maxtor. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.



Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC by Seagate and Maxtor through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus (when available) and other documents filed with the SEC from Seagate by directing a request to Seagate Technology, 920 Disc Drive, P.O. Box 66360, Scotts Valley, California 95067, Attention: Investor Relations (telephone: (831) 439-5337) or going to Seagate’s corporate website at www.Seagate.com, or from Maxtor by directing a request to Maxtor Corporation, 500 McCarthy Boulevard, Milpitas, California 95035, Attention: VP of Investor Relations (telephone: 408-894-5000) or going to Maxtor’s corporate website at www.maxtor.com.



Seagate and Maxtor, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Seagate’s directors and executive officers is contained in Seagate’s Annual Report on Form 10-K for the fiscal year ended July 1, 2005 and its proxy statement dated October 7, 2005, which were filed with the SEC. Information regarding Maxtor’s directors and executive officers is contained in Maxtor’s Annual Report on Form 10-K/A for the fiscal year ended December 25, 2004 and its proxy statement dated April 11, 2005, supplemental proxy statement dated May 10, 2005 and Current Report on Form 8-K dated August 24, 2005, which were filed with the SEC. Additional information regarding the interests of such potential participants will be included in the Joint Proxy Statement/Prospectus and the other relevant documents filed with the SEC (when available).

Contact Information

Alan Bernheimer

Media Relations

Maxtor Corporation

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