Fujitsu To Expand its Hard Disk Drive Business

Tokyo, January 13, 2006 — Fujitsu Limited today announced strategic measures to expand its hard disk drive (HDD) business. Fujitsu will be expanding its line of 2.5-inch models and also entering the 1.8-inch small form factor HDD market. The company has been focusing on 2.5-inch HDDs for mobile PCs and 3.5-inch models for enterprise server and network storage systems, and due to the high quality and technological advancement of its products, held second-largest market share worldwide in both sectors in 2005(1). Fujitsu will be focusing its resources in markets where significant growth is expected, aiming to double unit sales and secure its position as the world’s third-largest overall supplier of HDDs in fiscal 2008.

2.5-inch HDDs for Mobile PCs

In the mobile PC HDD market, Fujitsu will offer high-capacity 200GB products in fiscal 2006 to meet rapid growth in demand related to the burgeoning popularity of audio visual-oriented PCs. In addition, the company plans to introduce 7,200 rpm HDDs for high-end PCs, as well as HDDs incorporating perpendicular magnetic recording technology during the same fiscal year. It also plans to introduce models capable of withstanding extreme heat and cold for automotive and other non-PC applications. With this expanded product lineup, Fujitsu aims to capture 30% of this global market segment.

2.5-inch and 3.5-inch HDDs for Enterprise Systems

In addition to its flagship 3.5-inch HDDs for enterprise servers, Fujitsu will also pursue further performance gains in 2.5-inch form factor HDDs, reflecting the trend to downsizing. For interfaces, the company will concentrate on the increasingly popular serial-attached SCSI (SAS) interface. In fiscal 2006, it plans to offer high-speed, high-capacity 2.5-inch and 3.5-inch models running at 10,000 rpm with 147GB capacity and 15,000rpm with 300GB capacity, respectively, for use in enterprise systems that require both high performance and high reliability. Fujitsu likewise aims to win a 30% share of this global market segment.

1.8-inch HDDs

Fujitsu will enter the market for small form factor 1.8-inch HDDs for application in portable music players, video cameras, and ultra-portable notebooks that are rapidly increasing in popularity. To accelerate development in this new sector, Fujitsu will jointly develop products with Cornice Inc.(2), and is planning to introduce a 120GB model in the first half of fiscal 2007. By combining Fujitsu’s experience and technology in developing 2.5-inch HDDs with Cornice’s experience and technology in developing 1-inch hard drives for consumer electronics, Fujitsu intends to quickly develop and bring highly reliable products to the market.
Notes

1. Second-largest market share worldwide in both sectors in 2005: (Source: Techno Systems Research. HDD Quarterly Shipment Trend Q3/CY2005 Results, November 15th, 2005.)

2. Cornice Inc.:
Established: August 2000
Address: 1951 S Fordham St, Longmont, CO, USA
Founder & Chairman: Kevin Magenis
President & CEO: Camillo Martino
Business: Development and manufacture of hard disk drives for consumer electronics.

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers’ success. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.7 trillion yen (US$44.5 billion) for the fiscal year ended March 31, 2005. For more information, please see www.fujitsu.com

Contact Information

Etsuro Yamada

General Manager

Fujitsu Limited

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