SCOTTS VALLEY, Calif. - January 20, 2010 - Seagate Technology (NASDAQ: STX) today reported financial results for the quarter ended January 1, 2010 of 49.9 million disk drive unit shipments, revenue of $3.03 billion, gross margin of 30.5%, net income of $533 million and diluted earnings per share of $1.03. The financial results for the quarter include $10 million of purchased intangibles amortization expense or approximately $0.02 per diluted share.

For the six months ended January 1, 2010 the company reported 96.2 million disk drive unit shipments, revenue of $5.69 billion, gross margin of 27.7%, net income of $712 million and diluted earnings per share of $1.38. The financial results for the six months ended January 1, 2010 include $20 million of purchased intangibles amortization expense, $46 million of restructuring costs and a write down of long-lived assets of $64 million. The aggregate impact of these expense items is $130 million or approximately $0.25 per diluted share.

“Our strong financial performance in the December quarter was the result of our ongoing progress in driving operational efficiencies, our leadership position in high capacity, high performance products, an improved product mix and the overall strength of demand for digital storage,” said Steve Luczo, Seagate CEO.

Additional information relating to the financial results for the fiscal second quarter of 2010 can be found online at seagate.com.

Conference Call
Seagate will hold a conference call to review the fiscal second quarter results at 2:00 p.m. Pacific Time today. During today’s conference call, the company will provide an outlook for its third fiscal quarter of 2010, including key underlying assumptions.

The conference call can be accessed online at seagate.com or by phone as follows:
USA: (866) 713-8562
International: (617) 597-5310
Participant Passcode: 79349419

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 March 2010 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, the present global economic environment conditions may pose a risk to the Company’s operating and financial performance as consumers and businesses defer purchases in response to financial conditions. Such risks and uncertainties also include the impact of the variable demand, particularly in view of current business and economic conditions; 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 Quarterly 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 November 4, 2009, 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)
					January 1, 2010				July 3, 2009 (a)
Assets
		Cash and cash equivalents		$	1,891			$	1,427
		Short-term investments			201				114
		Restricted cash and investments			118				508
		Accounts receivable, net			1,333				1,033
		Inventories			645				587
		Deferred income taxes			99				97
		Other current assets			594				528
			Total Current Assets		4,881				4,294
		Property, equipment and leasehold   improvements, net			1,983				2,229
		Deferred income taxes			364				372
		Other assets, net			160				192
			Total Assets	$	7,388			$	7,087
Liabilities and Shareholders' Equity
		Short-term borrowings		$	15			$	350
		Accounts payable			1,810				1,573
		Accrued employee compensation			207				144
		Accrued warranty			200				213
		Accrued expenses			467				483
		Accrued income taxes			13				10
		Current portion of long-term debt			81				421
			Total Current Liabilities		2,793				3,194
		Long-term accrued warranty			201				224
		Long-term accrued income taxes			63				69
		Other non-current liabilities			101				120
		Long-term debt, less current portion			1,895				1,926
			Total Liabilities		5,053				5,533
		Shareholders' Equity			2,335				1,554
			Total Liabilities and Shareholders'  Equity	$	7,388			$	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 3 Months Ended						For the 6 Months Ended
							January 1, 2010			January 2, 2009(a)			January 1, 2010			January 2, 2009(a)
Revenue							$	3,027		$	2,270		$	5,690		$	5,302
Cost of revenue								2,104			1,954			4,114			4,460
Product development								227			235			434			495
Marketing and administrative								110			142			217			290
Amortization of intangibles								8			14			16			28
Restructuring and other, net											78			46			101
Impairment of goodwill and other long-lived assets											2,320			64			2,320
	Total operating expenses							2,449			4,743			4,891			7,694
Income (loss) from operations								578			(2,473)			799			(2,392)
Interest income								1			5			2			12
Interest expense								(41)			(32)			(87)			(65)
Other, net								(11)			(8)			(7)			22)
	Other income (expense), net							(51)			(35)			(92)			(75)
Income (loss) before income taxes								527			(2,508)			707			(2,467)
Provision for (benefit from) income   taxes								(6)			316			(5)			300
Net income (loss)							$	533		$	(2,824)		$	712		$	(2,767)
Net income (loss) per share:
	Basic						$	1.07		$	(5.80)		$	1.43		$	(5.69)
	Diluted							1.03			(5.80)			1.38			(5.69)
Number of shares used in per share calculations:
	Basic							498			487			496			486
	Diluted							520			487			518			486
(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 6 Months Ended
				January 1, 2010				January 2, 2009 (a)
Operating Activities
Net income (loss)				$	712			$	(2,767)
Adjustments to reconcile net income to net  cash provided by (used in) operating activities:
	Depreciation and amortization				396				481
	Stock-based compensation				25				53
	Impairment of goodwill and other long-lived assets				64				2,320
	Deferred income taxes				6				305
	Other non-cash operating activities, net				22				(8)
	Changes in operating assets and liabilities:
		Accounts receivable			(300)				368
		Inventories			(58)				149
		Accounts payable			229				(282)
		Accrued employee compensation			63				(284)
		Accrued expenses and warranty			(90)				(105)
		Other assets and liabilities			(38)				162
			Net cash provided by (used in) operating  activities		1,031				392
Investing Activities
Acquisition of property, equipment and  leasehold   improvements					(192)				(494)
Purchases of short-term investments					(190)				(116)
Maturities and sales of short-term investments					101				120
Decrease in restricted cash and investments					11
Proceeds from sale of investment in equity securities									11
Other investing activities, net					(3)				4
	Net cash provided by (used in) investing activities				(273)				(475)
Financing Activities
Proceeds from short-term borrowings					15				350
Repayment of short-term borrowings					(350)
Repayment of long-term debt					(380)				(15)
Decrease in restricted cash and investments					379
Proceeds from exercise of employee stock
options and employee stock purchase plan					42				36
Dividends to shareholders									(117)
	Net cash provided by (used in) financing activities				(294)				254
	Increase (decrease) in cash and cash
	equivalents				464				171
Cash and cash equivalents at the beginning of the period					1,427				990
Cash and cash equivalents at the end of the period				$	1,891			$	1,161
(a)  As adjusted due to changes to the accounting for convertible debt instruments implemented in the first quarter of fiscal year 2010.