1. Expanding Storage in the New World of Consumer Electronics Patrick O’Malley SVP, Consumer Electronics Seagate Technology

2. Storage Remains Expansive and Ubiquitous Based on a global population of over 6B people, almost 800MB of information is produced per person each year The typical American consumer will generate 100GB of information during their lifetime Over 100 million hours of original programming of broadcast and television each year – That’s 75PB’s Email generates 400PB’s of data each year In 2002, 5 Exabytes of data were recorded magnetically, yet that was only ¼ of the electronic information flows in the same year Source: UC Berkeley Study 2003

3. Technology Enables Lifestyle Removable “flash card” size storage for music, still and motion video (phones, camcorders, “personal” PVR’s… Multimedia in mobile computing... Wireless storage of photos, music, HDTV quality video recording and archive, gaming… A Terabyte In Your Den A Terabyte In Your Den 200 GB’s In Your Lap 10 GB’s In Your Palm 1-2 Years from Now… for less than $200 for less than $150 for less than $100

4. “I want to take it with me” Picture is clear that mass storage will pervade many applications Many different Technical and Business Models are evolving/converging STB with HDD MP3 HDD based devices The end consumer will have storage in many places Consumer will want to manage this and take much of it with them ALL OF THE TIME Consumer will want options to expand storage needs easily and from multiple devices As market evolves in HDD Consumer Electronics, expansion and the ability to remove will become a “necessary” option on many devices Understanding applications will be paramount to design engineers

5. Consumer Storage Categories

6. Estimated External HDD Market Size

7. External Market Projections by Interface

8. Customer Sets US Cable TV Satellite TV Game consoles Retail Handheld All market players PC Crossover

9. Expected form factors required for Digital CE applications in next 3 years PVR/DVR/STB Fat 3.5”, 2.5”, External, Removable Home audio, video archive Low Cost 3.5, 2.5”, Fat 3.5”, Removable Gaming Low Cost 3.5”, 2.5”, 1”, Removable MP3 2.5”, 1.8”, 1”,.85” Mobile Video Players 2.5”, 1.8”, 1” Cell Phones.85”, 1”, External Multi function devices 1.8”, 1”,.85”, Removable & Embedded Digital Cameras 1”, &.85”, Removable & Embedded Digital Camcorders 1.8”, 1” Removable & Embedded Auto Navigation 2.5”, 1.8”, 1”, Removable & Embedded Auto Entertainment 2.5”, 1.8”, 1”, Removable & Embedded

10. External Products-Today

11. ST1 2.5 and 5 GB Primarily targeted at digital music players at launch 5 GB = –2500 songs (Windows Media) –74 minutes MP4 video RunOn Technology G-Force Protection –1500 Gs robustness non-op Future applications will be PDA’s, DSC,DVC,others

12. Test Mapping through Field Study (Handheld Storage): Shock and Vibration Profile Shock Random Vibration

13. Barriers to Portability 1)Legal-(Digital Rights Management) Content owners will dictate accepted solutions 2)Technological- 1)Interfaces will evolve and multiply- USB,SATA, CE-ATA 2)Evolving Form factors 3)Wireless communication capability of devices 3)Business Models- many models will compete in this space. Many variables to determine success on any given one 4)Social- Consumer may want an easy/expandable storage solution to their devices, but will we overload them with “option-itis” 5)Lack of tools to manage vast storage/content across the consumers world 6)Cost,cost,cost 1)Price points dictate volumes and volumes dictate cost