Dear Seagate Partner

We are pleased to provide you with the following update on our plans for Maxtor brand hard drives.

As we have stated in prior communications, Seagate is committed to maintaining the Maxtor brand in the channel. Seagate will honor all Maxtor brand limited warranties for the duration of their warranty periods and will maintain existing programs and terms and conditions on Maxtor hard drives through October 1, 2006. After that time, new and enhanced Maxtor products, programs, and terms and conditions will go into effect.

As part of our commitment to develop the Maxtor brand and products, we will be sharing the following details with the press, analysts and our distributors this week:

° Seagate will maintain the Maxtor DiamondMax brand in the channel and will refresh the Maxtor DiamondMax desktop drive product line in the October timeframe.


° Seagate plans to launch the Maxtor MobileMax notebook drive product line in October, adding 2.5-inch hard drives to the Maxtor portfolio.


° The Maxtor DiamondMax and MobileMax products will provide a different and compelling business value proposition to complement the Seagate Barracuda and Momentus brands.


° The Maxtor brand products may have different SKUs and configurations, warranty, service and support, terms and conditions, marketing, and demand-generation programs. They will leverage a common Seagate sales force, program framework, and IT and operational infrastructure.


° This week, we will begin reviewing the details with our distribution partners and demonstrating how our partners can take advantage of these new offerings.
Additionally, in mid-September, we will provide more information on the new terms and conditions, as well as information on the Maxtor VIP and Seagate Partner Programs.

In the meantime, if you have any questions regarding Maxtor products or programs, please visit http://www.seagate.com/newsinfo/about/faqs/index.html or contact your Seagate sales representative or authorized distribution partner.

Regards,
Seagate

LOL! That's the most engineer-speak phrase I've ever read for advertising.