Feb 13, 2008

Seagate Further Extends Retail Reach in India with Customer-Friendly Direct Access Outlets in Emerging Cities

NEW DELHI, India - Seagate Technology (NYSE:STX) announced today that it will collaborate with its channel partners to support a series of retail access points across several of India’s fast-emerging cities to address the country’s expanding market and customer needs.

The world’s leading manufacturer of hard drives and storage solutions aims to strengthen support for the digital storage needs of customers in cities such as Bhopal, Coimbatore, Dehradun, Jamshedpur, Kanpur, Ludhiana, Madurai, Mysore, Nagpur and Visakhapatnam, which are currently experiencing an economic boom.

These retail access points will now bring new availability for Seagate’s industry-leading storage products to a broader range of consumers in burgeoning areas of India.

At these outlets, customers may browse and reference detailed information on Seagate’s comprehensive suite of products, and avail themselves of trained service staff that provide the opportunity for customers to address their queries in person.

This effort will expand the number of retail outlets in India from 40 today to approximately 100 by the end of 2008.

According to market reports, the demand for technology products is growing at a much faster rate in the newer non-metro cities, which is now commonly known as ‘emerging India’.

A 2005 joint-study by Manufacturers’ Association of Information Technology (MAIT)1 and India Market Research Bureau (IMRB) projected desktop sales in the top four metro cities will grow by 15% from 2002 to 2007 as compared to 33% – representing more than twice the growth rate – which the rest of India (including smaller towns) will experience over the same period1.

The report also highlighted that since these emerging markets are dominated by small, medium enterprises (SMEs) and individual buyers, engaging them would require different approaches as well as a more complete brand experience.

“The retail access points in these emerging markets are meant to help first-time buyers who might be acquainted with the Seagate brand but have no access to our products or suite of services,” said Rajesh Khurana, Seagate country manager for India & SAARC countries.

“We found that most of these emerging cities do not have dedicated market areas such as Delhi’s Nehru Place or Mumbai’s Lamington Road to offer technology products,” added Khurana. “Often, customers from emerging cities have to travel great geographical distances in order to experience the Seagate brand and this has posed a deterrent to technology adoption in these areas. By encouraging our partners to progress in this direction, Seagate is enabling technological growth in emerging cities and helping our channel partners take on an expanded role by participating in the retail boom.”

The retail outreach program is driven by increasing consumer demand and is part of the company’s commitment to the Indian market, demonstrated through its innovative market solutions and support for channel partners under the company’s Seagate Partner Program (SPP).

Seagate first launched the web-enabled SPP two years ago to widen its reach to customers. Under this program, any channel member wishing to become a part of the Seagate network can simply register on the web to become an authorized channel partner. Today, there are over 680 members of the SPP in India. In addition, the four in-country distributors for Seagate’s range of storage products have a combined total of more than 100 offices and tier-two dealers throughout the country, addressing customer needs across geographies, industry segments and verticals.

Since then, Seagate introduced another innovative initiative, the Regional Customer Councils, as a forum for its country-wide channel members to provide valuable market feedback and address issues of common concern.

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.

Seagate, Seagate Technology and the Wave logo are U.S. registered trademarks of Seagate Technology LLC. 1MAIT, IT Industry Performance Annual Review: 2006-07, http://www.mait.com/Industry/industry-maitann2007.zip