Seagate Technology Updates Fiscal First Quarter 2008 Outlook

    Raising revenue, gross margin and earnings outlook for the September

    SCOTTS VALLEY, Calif., Aug. 28 /CNW/ -- Seagate Technology (NYSE:   STX)
today provided an update of its expected results for the fiscal first quarter
2008 which ends September 28, 2007. The company now expects revenue of $3.15 -
$3.25 billion, GAAP diluted earnings per share of $0.57 - $0.61 and non-GAAP
diluted earnings per share, which excludes $27 million of purchased
intangibles amortization and other charges associated with the Maxtor and
EVault acquisitions, of $0.62 - $0.66.
    The company's original outlook for the first fiscal quarter was for
revenue of $2.9 - $3.0, GAAP diluted earnings per share of $0.35 - $0.39 and
non-GAAP diluted earnings per share, which excludes $27 million of purchased
intangibles amortization and other charges associated with the Maxtor and
EVault acquisitions, of $0.40 - $0.44.
    The primary factors leading to the improved outlook for the first fiscal
quarter are [1] industry unit demand at the high-end of the predicted range;
[2] favorable pricing thus far in the quarter reflecting a more balanced
supply and demand environment, and [3] a better product mix.
    Gross margin is expected to expand to approximately 24% due to the
demand, pricing and product mix factors referenced above. Operating expenses
(R&D and SG&A) are expected to increase above the company's previous outlook
due to higher variable compensation costs. The revised outlook assumes a 6%
tax rate and diluted shares outstanding of 555 million.
    Given the typical shipment profile for a September quarter and the
dynamic nature of the demand and pricing environment, actual results during
the balance of the quarter will heavily influence the company's financial
performance for the quarter.
    About Seagate
    Seagate is the worldwide leader in the design, manufacture and marketing
of hard disc drives, providing products for a wide-range of applications,
including Enterprise, Desktop, Mobile Computing, Consumer Electronics and
Branded Solutions. Seagate's business model leverages technology leadership
and world-class manufacturing to deliver industry-leading innovation and
quality to its global customers, and to be the low cost producer in all
markets in which it participates. The company is committed to providing award-
winning products, customer support and reliability to meet the world's growing
demand for information storage. Seagate can be found around the globe and at
    Safe Harbor
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These forward-looking
statements relate to the company's expected revenue, gross margin and earnings
per share (presented on a GAAP basis as well as on a non-GAAP adjusted basis)
for its first fiscal quarter.  These forward-looking statements are based on
information available to Seagate as of the date of this press release. Current
expectations, forecasts and assumptions involve a number of risks and
uncertainties that could cause actual results to differ materially from those
anticipated by these forward-looking statements. Such risks and uncertainties
include a variety of factors, some of which are beyond the company's control.
In particular, such risks and uncertainties include the impact of the variable
demand and the aggressive pricing environment for disc drives. Information
concerning additional factors that could cause results to differ materially
from those projected in the forward-looking statements is contained in the
company's Annual Report on Form 10-K as filed with the U.S. Securities and
Exchange Commission on August 27, 2007. These forward-looking statements
should not be relied upon as representing the company's views as of any
subsequent date and Seagate undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date they were made.

For further information:

For further information: Media Relations, Brian Ziel, +1-831-439-5429,, or Investor Relations, Rod Cooper, +1-831-439-2371,, both of Seagate Technology Web Site:

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