Leading Industry Analyst Firm Confirms Xyratex as a Global Leader in Worldwide Disk Storage Systems

Xyratex Ltd. (Nasdaq:XRTX), a leading provider of enterprise class data storage subsystems and storage process technology, announced today that it has been named one of the top three leaders in the storage systems OEM market by a leading industry analyst firm. According to a new market study by IDC that included a comprehensive and independent review of the worldwide disk storage market, Xyratex was the world’s third largest storage system original equipment manufacturer (OEM) in 2006 by revenue, an advance from its number four position on the list in 2005. In its competitive analysis report "Worldwide Disk Storage Systems 2006 Vendor Shares: Year in Review,” (IDC #207789, August 2007), IDC researched various segments of the disk storage systems market for 2006 and the two preceding years, and outlined the market share data of the top 32 disk storage system suppliers that sell storage systems under their own respective brands. In this report, IDC also published an assessment of OEM revenues for selected suppliers1. According to this OEM market view, Xyratex ranks third after HDS and EMC in 2006 in terms of revenue. Xyratex’s 42.5 percent revenue growth over the previous year was the highest among the top five suppliers selling storage systems to the OEM market. "Last year was a strong period for the disk storage systems market and Xyratex capitalized on the market opportunity by delivering a broad range of disk based storage solutions, partnering with industry leading customers, and gaining key technology assets through its targeted acquisitions,” said Natalya Yezhkova, research manager, IDC. "IDC predicts that the worldwide disk storage systems market will grow to $31.4 billion by 20112. As one of the world’s largest providers of network storage solutions for OEMs and solution integrators, Xyratex is well positioned to continue to increase its market penetration.” According to the report, Xyratex’s storage system business grew to $584.1 million in calendar year 2006, which represents roughly 60 percent of Xyratex’s overall revenue. Xyratex continues to demonstrate its leadership position in the market, delivering a broad range of scalable and flexible storage solutions that OEMs can customize for a range of applications and markets. These customizable solutions include a portfolio of enterprise class RAID subsystems, JBOD enclosures, application enabled systems and a management console designed for ease-of-use. Xyratex’s innovative storage technology, operational services, integration and customization offerings, enable OEMs to more quickly and efficiently meet performance and strategic business goals. "IDC’s recognition of Xyratex as a leader in worldwide disk storage systems is a testament to our continued dedication to broadening and enhancing our storage solutions,” said Todd Gresham, executive vice president for Networked Storage Solutions, Xyratex. "Xyratex is also unique among the top three ranked companies on IDC’s list as the only company operating with a comprehensive OEM model. This IDC report underscores the ongoing success of our innovative business and technology approaches for networked storage solutions.” About Xyratex Xyratex is a leading provider of enterprise class data storage subsystems and storage process technology. The company designs and manufactures enabling technology that provides OEM and disk drive manufacturer customers with data storage products to support high-performance storage and data communication networks. Xyratex has over 20 years of experience in research and development relating to disk drives, storage systems and high-speed communication protocols. Founded in 1994 in a management buy-out from IBM, and with its headquarters in the UK, Xyratex has an established global base with R&D and operational facilities in Europe, the United States and South East Asia. For more information, visit www.xyratex.com. 1 The assessed list of storage companies is not intended to represent an exhaustive view of OEM sales. Rather, it shows the OEM revenue of suppliers that have, at least, one of the following: (i) Additional branded storage systems sales and a ranking in the report; (ii) OEM revenue that exceeded $100 million in 2006. 2 IDC’s Worldwide Disk Storage Systems 2007–2011 Forecast: Mature, But Still Growing and Changing, IDC #206662, May 2007.