Jul 27, 2004

Seagate and Linspire, Inc. Exclusively Bring Linspire Linux OS to Latin America

Seagate (NYSE:STX), the world's leading hard drive maker, and Linspire, Inc., today jointly announced an extension of their agreement to offer the LinspireEspanol desktop Linux operating system pre-loaded on Seagate Barracuda hard drives for emerging markets. This package will enable computer manufacturers to offer affordable Spanish language Linux desktop computers to their customers in Latin America.

In conjunction with Seagate, Linspire created a Spanish version of Linspire, an affordable and robust operating system that delivers the power, stability and cost-savings of Linux with an intuitive interface and instant installation process - even computer novices can enjoy this modern, next-generation operating system with just a few clicks of their mouse. Desktop users are offered web browsing, email, instant messaging and games, and for schools and businesses, a complete office suite including word processing, spreadsheet, and presentation program software are available. Visit www.linspire.com/espanol for a complete description and to view a demo of LinspireEspanol.

An English-language version of Linspire has previously been available pre-loaded on Seagate's Barracuda hard drives for the United States and Canada. Beginning in July 2004, Seagate will install LinspireEspanol 4.5 on select Barracuda hard drives for the entry-level PC market in Latin America. Seagate's authorized distributors Bell Microproducts and Intcomex, that target Mexico, Central and South America, can be contacted by computer manufacturers wishing to purchase the Barracuda hard drives pre-loaded with LinspireEspanol.

To offer and support affordable products to the whitebox market, which controls 60% of the desktop computer market in Latin America, LinspireEspanol offers a simplified licensing, cost-effective, complete, and fully supported Linux solution. LinspireEspanol avoids unnecessary licensing costs and requires no guaranteed minimums, which has traditionally been the case with other operating systems. To further expand on their mission to offer cost-effective and value added products to their channel partners worldwide, Seagate has initiated expanded manufacturing of the Linux pre-loaded hard drives at its manufacturing plants to meet the anticipated demand.

"By partnering with Linspire, Seagate continues to provide innovative and cost-effective Linux products to our channel partners, who are the driving force in providing affordable computers in emerging markets," said Brian Dexheimer, Seagate executive vice president of Sales, Marketing and Customer Service. "Seagate Barracuda hard drives pre-loaded with a Spanish-language version of Linux will enable system builders to offer a quality and affordable desktop computer to customers in a high-growth market segment."

"Our continuing relationship with Seagate and their extensive distribution channel will expand the reach of desktop Linux to emerging markets," said Michael Robertson, chief executive officer of Linspire Inc. "With Seagate's commitment to innovation and scalability, Linux users around the world will continue to have access to an affordable and easy-to-use operating system."

Computer manufacturers and VARs in Latin America who are interested in desktop computers with LinspireEspanol pre-loaded on Seagate Barracuda hard drives should visit http://www.socioseagate.com/linspire for distributor information. Those wanting to participate in the Linspire Mexico community forum webpage can visit http://www.linspire.com/linspireespanol.

About the Seagate Barracuda
The Seagate Barracuda disc drive is among the fastest and quietest PC hard drives ever. The drive's revolutionary SoftSonic Fluid Dynamic Bearing (FDB) motor makes the drive virtually silent, despite its high-performance 7,200-rpm spindle speed. The Barracuda disc drive family has earned more praise in the worldwide press than any other 7,200-rpm hard drive. Like all Seagate hard drives, it features the 3D Defense System, the industry's best disc, data and diagnostic protection, making it the most rugged hard drive available for personal computers.

About Seagate
Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives, providing products for a wide range of Enterprise, PC, Notebook and Consumer Electronics applications. The company is committed to delivering 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 and Seagate Technology are registered trademarks of Seagate Technology LLC. The WAVE logo, Barracuda and 3D Defense System are trademarks or registered trademarks of Seagate Technology LLC. All other trademarks or registered trademarks are the property of their respective owners. Specified storage capacities reflect standard configurations exclusive of operating system or other software formatting.

About Linspire
Linspire is an affordable Linux-based operating system, designed specifically for desktop and laptop computers in homes, schools and businesses. Linspire uses proprietary CNR technology that allows the installation, updating and management of hundreds of software programs usually with just one click. The Linspire operating system is also offered in Spanish (www.linspire.com/espanol), Italian (www.linspire.com/italiano) and Japanese (www.linspire.com/livedoor). Those who are interested in becoming authorized resellers of Linspire should visit, www.linspire.com/reseller, or www.linspire.com/builder if interested in selling computers pre-loaded with Linspire.

Linspire is located at 9333 Genesee Ave., 3rd floor, San Diego, CA, 92121. Linspire is a trademark. Copyright (c) 2004. All rights reserved.