1. PVR/DVR Market November 4 th, 2004 Brendan Collins VP, Core Products Marketing Maxtor Corporation

2. Maxtor Confidential2Nov 4, 2004 Total CE Market 173% Portable Video 430% Cell Phone 59% Camera 72% Audio/MP3 ’02-06 CAGR 59% Overall Units (millions) CE HDDs by Application 0 10 20 30 40 50 60 70 80 90 200120022003200420052006 104% Auto 13% Game Box 133% PVR/DVR Source: TrendFOCUS

3. Maxtor Confidential3Nov 4, 2004 3.5” Form Factor 0 50 100 150 200 250 300 200120022003200420052006 97% Personal Storage 44% Enterprise 50% CE 11% Channel Inventory 5% Home PC 5% Business PC ’02-06 CAGR Units (millions) 3.5” HDD Unit Growth 13% Overall The CE market is by far the fastest growing segment of the 3.5” space, but is still a long way off from approaching the size of the PC market Source: TrendFOCUS

4. Maxtor Confidential4Nov 4, 2004 Size, Growth, and Penetration of DE Markets -40% -20% 40% 60% 80% 100% HDD Penetration CAGR Size of the bubbles is proportional to the size of the corresponding market (in units) Mobile Phones Desktops Laptops PVR/DVR/STB MP3 Players Game Box Automotive Digital Photo PDAs Handheld Games Portable Video Full year 2003 actuals PVR, Laptops, and Desktops all have 100% HDD penetration. All other applications but game box have less than 10%. All would require small form factor drives

5. Maxtor Confidential5Nov 4, 2004 0 100 200 300 400 500 600 DesktopsPVR/DVR/ STB MP3 Players Portable Video PDAsMobile Phones Units, Millions Notebooks Game boxAutomotive Digital Photo Handheld games Devices with HDDs Devices without HDDs 100% 28% 8% 6% 5% 1% 0% All potential markets are dwarfed by the cell phone market. Applications with a PC-architecture (PVR, Game box) show high penetration Size and Penetration of DE Markets - 2004

6. Maxtor Confidential6Nov 4, 2004 PVR/DVR Market Segmentation Stand Alone DVRs Pay TV Set Top Boxes Converged Devices & Media Centers DVD-R/HDD Recorders 40 - 80 GB 2 Streams 1 tuner (40 Mbps) $ 600 - 1200 ASP Acoustics 40 GB 2 Streams 1 tuner (40 Mbps) $ 400 - 600 ASP Acoustics Power/Heat “Best in Class” 80 GB 2 Streams 1 tuner (40 Mbps) $100-200 ASP Acoustics Power/Heat “Best in Class” 40 GB 2 Streams, 1 tuner (40 Mbps) $100-200 ASP Acoustics Reliability 80 - 300 GB 2 - 4 Streams, 2 tuners (80 Mbps) $ 700 - 1800 ASP Acoustics 80 - 300 GB 2 - 4 Streams, 2 tuners (80 Mbps) $ 700 - 2000 ASP Acoustics Power/Heat “Best in Class” 80 - 300 GB 2 - 4 Streams, 2 tuners (80 Mbps) $ 250 - 400 ASP Acoustics Power/Heat “Best in Class” 80 - 300 GB 2 - 3 Streams, 2 tuners (60 Mbps) $ 250 - 400 ASP Acoustics 400 - 500 GB 2 - 4 Streams 4 tuners (80 Mbps) $ 1000 - 2500 ASP Acoustics 400 - 500 GB 2 - 4 Streams 4 tuners (80 Mbps) $ 850 - 2000 ASP Acoustics Power/Heat “Best in Class” 300 - 500 GB 4 - 7 Streams 4 tuners (140 Mbps) $ 250 – 2,000 ASP Acoustics Power/Heat “Best in Class” 300 - 500 GB 3 - 4 Streams, 4 tuners (80 Mbps) $ 250 - 400 ASP Acoustics Entry Mid Range High End

7. Maxtor Confidential7Nov 4, 2004 Editing Broadcasting On Demand PVR/DVR Creation Delivery Playback Multiple AV Content Storage Systems Maxtor has participated mostly in the Playback segment Distributed VOD systems are potential SCSI/SATA opportunity that is being opportunistically supported Edit and Broadcast area are unknown opportunities and are small but profitable

8. Maxtor Confidential8Nov 4, 2004 Digital Entertainment Landscape Audio Video Games Creation Delivery Playback

9. Maxtor Confidential9Nov 4, 2004 Why Maxtor? Maxtor is the early mover in the DVR market An original investor in TiVo Market share leader First HDD in a cable STB Large number of design wins with ~50 different customers

10. Maxtor Confidential10Nov 4, 2004 Mechanical design consulting, testing and integration support –Thermal –Acoustics –EMI –Shock and Vibration –Packaging –Power Qualification –Joint qualification –Support Performance –AV Throughput –AV profiling, modeling, testing –STB system optimization AV HDD feature development –QuickVIEW (Advanced) –Industry standard (T13) –Custom (Proprietary) Host-based software technology –Core Linux DVR functionality –Content encryption/security Manufacturing support services –Factory integration consulting, training Quality systems –Process assistance –AFR Monitoring and Reporting –Failure Analysis Systems solutions co- development –Reference designs –Chipset/middleware compatibility –Open Standards influence (T13, SATA, 1394 TA, USB2, etc.)

11. PVR/DVR Market November 4 th, 2004 Brendan Collins VP, Core Products Marketing Maxtor Corporation