1137789--8/27/2007--SEAGATE

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Volatility of Quarterly Results Our quarterly operating results fluctuate significantly from period to period, and this may cause our shares prices to decline. New Product Offerings Market acceptance of new product introductions cannot be accurately predicted, and our results of operations will suffer if there is less demand for our new products than is anticipated. Smaller Form Factor Disc Drives If we do not continue to successfully market smaller form factor disc drives, our business may suffer. Perpendicular Recording Technology If products based on this technology suffer unanticipated or atypical reliability or operability problems, our operating results will be adversely impacted. In addition, products based on perpendicular technology require increased quantities of precious metals and scarce alloys like platinum and ruthenium which increases risk of higher costs and production delays that could adversely impact our operating results. Seasonality Because we experience seasonality in the sales of our products, our results of operations will generally be adversely impacted during our fourth fiscal quarter. Difficulty in Predicting Quarterly Demand If we fail to predict demand accurately for our products in any quarter, we may not be able to recapture the cost of our investments. Dependence on Sales of Disc Drives in Consumer Electronics Applications Our sales of disc drives for consumer electronics applications which have contributed significant revenues to our results, can experience significant volatility due to seasonal and other factors which could materially adversely impact our future results of operations. Dependence on Supply of Components, Equipment, and Raw Materials If we experience shortages or delays in the receipt of critical components, equipment or raw materials necessary to manufacture our products, we may suffer lower operating margins, production delays and other material adverse effects. Importance of Reducing Operating Costs If we do not reduce our operating expenses, we will not be able to compete effectively in our industry. Industry Demand Changes in demand for computer systems and storage subsystems has caused and may cause in the future a decline in demand for our products. Dependence on Distributors We are dependent on sales to distributors, which may increase price erosion and the volatility of our sales. Importance of Time-to-Market Our operating results may depend on our being among the first-to-market and achieving sufficient production volume with our new products. Accounting Charges and Pre-Acquisition Contingencies not Previously Identified Related to Acquisition of Maxtor We expect the acquisition of Maxtor with Seagate will continue to result in additional accounting charges, that may continue to have an adverse effect on our fiscal year 2008 operating results. Dependence on Key Customers We may be adversely affected by the loss of, or reduced, delayed or cancelled purchases by, one or more of our larger customers. Impact of Technological Change Increases in the areal density of disc drives may outpace customers demand for storage capacity. Changes in Information Storage Products Future changes in the nature of information storage products may reduce demand for traditional disc drive products. New Product Development and Technological Change If we do not develop products in time to keep pace with technological changes, our operating results will be adversely affected. Risks Associated with Future Acquisitions We may not be able to identify suitable strategic alliance, acquisition or investment opportunities, or successfully acquire and integrate companies that provide complementary products or technologies. Risk of Intellectual Property Litigation Our products may infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products. We are currently subject to lawsuits involving intellectual property claims brought by Convolve, Inc. and the Massachusetts Institute of Technology in the United States, Shao Tong in Nanjing, China and Siemens AG and StorMedia Texas LLC in the United States which could cause us to incur significant additional costs or prevent us from selling our products; which could adversely effect our results of operations and financial condition. Dependence on Key Personnel The loss of some key executive officers and employees could negatively impact our business prospects. Substantial Leverage Our substantial leverage may place us at a competitive disadvantage in our industry. Significant Debt Service Requirements Servicing our debt requires a significant amount of cash and our ability to generate cash may be affected by factors beyond our control. Restrictions Imposed by Debt Covenants Restrictions imposed by our existing credit facility may limit our ability to finance future operations or capital needs or engage in other business activities that may be in our interest. System Failures System failures caused by events beyond our control could adversely affect computer equipment and electronic data on which our operations depend. Economic Risks Associated with International Operations Our international operations subject us to risks related to currency exchange fluctuations, longer payment cycles for sales in foreign countries, seasonality and disruptions in foreign markets, tariffs and duties, price controls, potential adverse tax consequences, increased costs, our customers credit and access to capital and health-related risks. Political Risks Associated with International Operations Our international operations subject us to risks related to political unrest and terrorism. Legal and Operational Risks Associated with International Operations Our international operations subject us to risks related to staffing and management, legal and regulatory requirements and the protection of intellectual property. SOX 404 Compliance While we believe that we currently have adequate internal control procedures in place, we are still exposed to future risks of non-compliance and will continue to incur costs associated with Section 404 of the Sarbanes-Oxley Act of 2002. Volatile Public Markets The price of our common shares may be volatile and could decline significantly.

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1137789--8/27/2007--SEAGATE_TECHNOLOGY