About Seagate

Scotts Valley, CA – July 20, 2010 – Seagate Technology plc (NASDAQ: STX) today reported financial results for the quarter ended July 2, 2010 of 46.8 million disk drive unit shipments, revenue of $2.66 billion, gross margin of 27.4%, net income of $379 million and diluted earnings per share of $0.76. The financial results for the quarter include $6 million of purchased intangibles amortization expense, $16 million of restructuring charges, $3 million expense (Other Income/Expense) for the May 2010 termination of the revolving credit facility offset by a $6 million benefit relating to a previously written-down long-lived asset and a $50 million benefit (Provision for Income Taxes) due to valuation allowance adjustments related to deferred tax assets and other discreet adjustments. The aggregate impact of these items was a $31 million increase to Net Income or approximately $0.06 per diluted share.

For the fiscal year ended July 2, 2010 the company reported 193.1 million disk drive unit shipments, revenue of $11.4 billion, gross margin of 28.1%, net income of $1.61 billion and diluted earnings per share of $3.14. The financial results for the fiscal year ended July 2, 2010 include $35 million of purchased intangibles amortization expense, $66 million of restructuring costs, $3 million expense (Other Income/Expense) related to the May 2010 termination of the revolving credit line, a write down of long-lived assets of $57 million offset by a $50 million benefit (Provision for Income Taxes) due to valuation allowance adjustments related to deferred tax assets and other discreet adjustments. The aggregate impact of these items was a $111 million reduction of Net Income or approximately $0.22 per diluted share.

“I'm very encouraged by our financial and operational performance throughout fiscal 2010. In fiscal year 2010 Seagate delivered record shipments, profitability and operating margin. The company responded well to the increase in global hard drive demand, which grew 22% year-over-year, and remained focused on improving key business fundamentals to position the company for future growth.

“Specific to our fiscal fourth quarter, two of our key assumptions entering the quarter did not materialize as expected and impacted our financial results – macro-economic stability and pricing reflective of supply/demand balance. Industry demand in the fiscal fourth quarter was at the low end of our expectations due primarily to issues related to the economic slowdown and debt crisis in Europe. The lower unit shipments and unfavorable pricing at some key capacity points impacted Seagate’s ability to deliver revenue and earnings for the quarter within our target range. Despite these factors, Seagate reported the highest operating results for a June quarter in the company's history.”

Additional information relating to the financial results for the fiscal fourth quarter and fiscal year 2010 can be found online at seagate.com.

Conference Call
Seagate will hold a conference call to review the fourth fiscal quarter and full-year results today at 3:00 p.m. Pacific Time. The conference call will consist of opening comments from Steve Luczo, Seagate Chairman, President and CEO, followed by a question and answer session with the executive management team. During today’s conference call, the company will provide an outlook for its first fiscal quarter of 2011, including key underlying assumptions.

Seagate has issued a Supplemental Commentary document that contains information historically presented during the live conference call. The Supplemental Commentary will not be read during today’s call, but rather it is available in the investor relations section of seagate.com.

The conference call can be accessed online at seagate.com or by phone as follows:
USA: (800) 901-5241
International: (617) 786-2963
Participant Passcode: 44887384

Replay
A replay will be available beginning today at 6:00 p.m. Pacific Time. The replay can be accessed from seagate.com.

About Seagate
Seagate is the world leader in hard disk drives and storage solutions. Learn more at 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 in the September 2011 quarter, and thereafter, and include statements regarding expected revenue, gross margin, customer demand for disk drives 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, global economic conditions may pose a risk to the Company’s operating and financial performance. Such risks and uncertainties also include the impact of variable demand; dependence on Seagate’s ability to successfully qualify, manufacture and sell its disk drive products in increasing volumes on a cost-effective basis and with acceptable quality, particularly the new disk drive products with lower cost structures; the impact of competitive product announcements; and the Company’s ability to achieve projected cost savings. Information concerning risks, 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 19, 2009 and in the Company’s Quarterly Report on Form 10-Q as filed with the U.S. Securities and Exchange Commission on April 4, 2010, 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.

Seagate Technology Condensed Consolidated Balance Sheets
(In millions) (Unaudited)
					July 2, 2010				July 3, 2009 (a)
Assets
		Cash and cash equivalents		$	2,263			$	1,427
		Short-term investments			252				114
		Restricted cash and investments			114				508
		Accounts receivable, net			1,400				1,033
		Inventories			757				587
		Deferred income taxes			118				97
		Other current assets			514				528
			Total Current Assets		5,418				4,294
		Property, equipment and leasehold   improvements, net			2,263				2,229
		Deferred income taxes			395				372
		Other assets, net			171				192
			Total Assets	$	8,247			$	7,087
Liabilities and Shareholders' Equity
		Short-term borrowings		$				$	350
		Accounts payable			1,780				1,573
		Accrued employee compensation			263				144
		Accrued warranty			189				213
		Accrued expenses			422				483
		Accrued income taxes			14				10
		Current portion of long-term debt			329				421
			Total Current Liabilities		2,997				3,194
		Long-term accrued warranty			183				224
		Long-term accrued income taxes			59				69
		Other non-current liabilities			111				120
		Long-term debt, less current portion			2,173				1,926
			Total Liabilities		5,523				5,533
		Shareholders' Equity			2,724				1,554
			Total Liabilities and Shareholders'  Equity	$	8,247			$	7,087
	(a)	As adjusted due to changes to the accounting for convertible debt instruments implemented in the first quarter of fiscal year 2010.

Seagate Technology Condensed Consolidated Statements of Operations
(In millions, except per share data) (Unaudited)
							For the Three Months Ended						For the Nine Months Ended
							July 2, 2010			July 3, 2009(a)			July 2, 2010			July3, 2009(a)
Revenue							$	2,656		$	2,353		$	11,395		$	9,805
Cost of revenue								1,928			1,946			8,191			8,395
Product development								219			215			877			953
Marketing and administrative								115			114			437			537
Amortization of intangibles								4			14			27			55
Restructuring and other, net								16			84			66			210
Impairment of goodwill and other long-lived assets								(6)			_			57			2,320
	Total operating expenses							2,276			2,373			9,655			12,470
Income (loss) from operations								380			(20)			1,740			(2,665)
Interest income								2			2			6			17
Interest expense								(46)			(41)			(174)			(143)
Other, net								4			3			(3)			(23)
	Other income (expense), net							(40)			(36)			(171)			(149)
Income (loss) before income taxes								340			(56)			1,569			(2,814)
Provision for (benefit from) income   taxes								(39)			27			(40)			311
Net income (loss)							$	379		$	(83)		$	1,609		$	(3,125)
Net income (loss) per share:
	Basic						$	0.79		$	(0.17)		$	3.28		$	(6.40)
	Diluted							0.76			(0.17)			3.14			(6.40)
Number of shares used in per share calculations:
	Basic							479			491			491			488
	Diluted							500			491			514			488
Dividends declared per share							$			$			$			$	0.27
(a)	As adjusted due to changes to the accounting for convertible debt instruments implemented in the first quarter of fiscal year 2010.

Seagate Technology Condensed Consolidated Statements of Cash Flows
(In millions) (Unaudited)
				For the Nine Months Ended
				July 2, 2010				July 3, 2009 (a)
Operating Activities
Net income (loss)				$	1,609			$	(3,125)
Adjustments to reconcile net income to net  cash provided by (used in) operating activities:
	Depreciation and amortization				780				931
	Stock-based compensation				57				83
	Impairment of goodwill and other long-lived assets				57				2,320
	Deferred income taxes				(31)				306
	Other non-cash operating activities, net				34				8
	Changes in operating assets and liabilities:
		Accounts receivable			(367)				372
		Inventories			(170)				358
		Accounts payable			2				(296)
		Accrued employee compensation			119				(296)
		Accrued expenses and warranty			(161)				(117)
		Other assets and liabilities			3				62
			Net cash provided by (used in) operating  activities		1,932				823
Investing Activities
Acquisition of property, equipment and  leasehold   improvements					(639)				(633)
Purchases of short-term investments					(373)				(155)
Maturities and sales of short-term investments					233				192
Decrease (increase) in restricted cash and investments					15				(128)
Proceeds from liquidation of deferred compensation plan investments					_				85
Proceeds from sale of investment in equity securities					_				11
Other investing activities, net					12				10
	Net cash provided by (used in) investing activities				(752)				(618)
Financing Activities
Proceeds from short-term borrowings					15				350
Repayment of short-term borrowings					(365)				_
Net proceeds from issuance of long-term debt					587				399
Repayment of long-term debt					(462)				(55)
Decrease (increase) in restricted cash and investments					379				(380)
Proceeds from exercise of employee stock and employee stock purchase plan					86				54
Repurchase of common shares					(584)				_
Dividends to shareholders					_				(132)
Other financing activities, net					_				(4)
	Net cash provided by (used in) financing activities				(344)				232
	Increase (decrease) in cash and cash
	equivalents				836				437
Cash and cash equivalents at the beginning of the period					1,427				990
Cash and cash equivalents at the end of the period				$	2,263			$	1,427
(a)  As adjusted due to changes to the accounting for convertible debt instruments implemented in the first quarter of fiscal year 2010.