Seagate Technology (NYSE: STX) reported disc drive unit shipments of approximately 43 million, revenue of $2.9 billion, GAAP net income of $160 million, and diluted net income per share of $0.32 for the quarter ended June 27, 2008. GAAP net income and diluted net income per share includes approximately $23 million of purchased intangibles amortization and other charges associated with Seagate’s recent acquisitions. Excluding these items, non-GAAP net income and diluted net income per share were $183 million and $0.37, respectively. Included in both GAAP and non-GAAP results are restructuring charges of approximately $36 million or approximately $0.07 per share.

For the twelve months ended June 27, 2008, Seagate reported revenue of $12.7 billion, GAAP net income of $1.3 billion, and diluted net income per share of $2.36. GAAP net income and diluted net income per share includes approximately $113 million of purchased intangibles amortization and other charges associated with Seagate’s recent acquisitions and also a net gain from asset sales of approximately $19 million. Excluding these items, non-GAAP net income and diluted net income per share were $1.4 billion and $2.54, respectively. Included in both GAAP and non-GAAP results are restructuring and other charges of approximately $88 million or approximately $0.16 per share.

"We delivered strong growth in fiscal year 2008, with unit volume and revenue up 15% and 12%, respectively over fiscal year 2007, and with net income of $1.3 billion," said Bill Watkins, Seagate chief executive officer. "Sequentially, our market-leading share positions remainedunchanged in the enterprise and desktop markets, we grew our leading share position in the consumer electronics market, and we grew share in the notebook and retail markets. Were it not for some product execution issues in the notebook and nearline markets, we believe we would have delivered an even stronger quarter and year, with improved share positions. We have now made significant strides in reclaiming our product leadership in these areas. While we expect that the residual effects of the previously missed execution will be reflected in the first quarter, we believe that we will grow revenue and improve earnings throughout the remainder of FY2009."

A reconciliation of adjustments made to GAAP net income and diluted net income per share can be found following the financial statements included with this press release. Additional information relating to the financial results for the fourth fiscal quarter of 2008 can be found online at seagate.com.

Business Outlook

For the September quarter, Seagate expects to report revenue of $3.15 - $3.3 billion, and GAAP diluted net income per share of $0.18 - $0.22. Adjusting for approximately $20 million of purchased intangibles amortization and other charges associated with past closed acquisitions, non-GAAP diluted net income per share

for the September quarter is expected to fall within the range of $0.22 - $0.26. The GAAP and non-GAAP outlook for the September quarter does not include restructuring costs or accelerated depreciation charges relating to the previously announced closing of our substrate operations in Limavady and the finished media operations in Milpitas. Additionally, the outlook does not include the impact of any future acquisitions, stock repurchases or potential restructuring activities the company may undertake during the quarter. For fiscal 2009, Seagate believes the demand trends for storage continue to support healthy industry unit growth of 10-15% and industry revenue growth of 5-10%. Specific to Seagate, the company is confident that its performance relative to time-to-market, inventory management and its overall cost structure will improve as it executes the plans that are currently in place. Financial performance improvement will be incremental as the company implements numerous changes across the business during the first half of the fiscal year. As such, Seagate expects gross margins to begin improving with the December quarter and settle into the targeted range of 21-25% for the balance of the fiscal year.

Dividend and Stock Repurchase

The company has declared a quarterly dividend of $0.12 per share to be paid on or before August 15, 2008 to all common shareholders of record as of August 1, 2008. During the quarter ended June 27, 2008 the company purchased, under a 10b5-1 qualified stock repurchase plan, 9.1 million of its common shares at an average cost of $21.36. The company has authorization to purchase approximately $2.0 billion of additional shares under the current stock repurchase program.

SEAGATE TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions) (Unaudited)

June 27, 2008

June 29, 2007 (a)

ASSETS

Cash and cash equivalents

$ 990

$ 988

Short-term investments

151

156

Accounts receivable, net

1,410

1,383

Inventories

945

794

Deferred income taxes

274

196

Other current assets

502

284

Total Current Assets

4,272

3,801

Property, equipment and leasehold improvements, net

2,464

2,278

Goodwill

2,352

2,300

Other intangible assets

111

188

Deferred income taxes

616

574

Other assets, net

305

331

Total Assets

$ 10,120

$ 9,472

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts payable

$ 1,652

$ 1,301

Accrued employee compensation

440

157

Accrued expenses, other

825

786

Accrued income taxes

10

75

Current portion of long-term debt

360

330

Total Current Liabilities

3,287

2,649

Other non-current liabilities

367

353

Long-term accrued income taxes

210

―

Long-term debt, less current portion

1,670

1,733

Total Liabilities

5,534

4,735

Shareholders’ Equity

4,586

4,737

Total Liabilities and Shareholders’ Equity

$ 10,120

$ 9,472

(a) The information in this column was derived from the Company’s audited consolidated balance sheet as of June 29, 2007.

- End -

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, with the goal of being 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 www.seagate.com.

Cautionary Note Regarding Forward-Looking Statements

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 include, but are not limited to, statements related to the company’s future operating and financial performance, including expected revenue, net income and diluted earnings per share (presented on a GAAP basis as well as on a non-GAAP adjusted basis), price and product competition, customer demand for our products, and general market conditions. 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, uncertainties, and other factors that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be 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, particularly in view of current economic conditions; dependence on Seagate’s ability to successfully qualify, manufacture and sell its disc drive products in increasing volumes on a cost-effective basis and with acceptable quality, particularly the new disc drive products with lower cost structures; the impact of competitive product announcements and possible excess industry supply with respect to particular disc drive products; our ability to achieve projected cost savings in connection with our announced restructuring plans; and market conditions and alternative cash imperatives which could impact our ability to repurchase stock. Information concerning risk, uncertainties and other 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 and in the company's Quarterly Report on Form 10-Q as filed with the U.S. Securities and Exchange Commission on April 29, 2008, which statements are incorporated into this press release by reference. 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.