1. Distribution Channel Dynamics Jeff Loebbaka Vice President, Global Marketing

2. IDEMA Conference November 4, 2004 Page 2 100% 1% 60% 70% 80% 90% 100% List PriceCashLogisticsPOSMDFNet Price Industry Pricing: List vs. Net/Street 2% – 5% Off Invoice discounts range between 11% & 21% 0% 1% – 2% 5% – 8% 1% – 3% 79% Distributor POS/Perf. Distributor Sell-in

3. IDEMA Conference November 4, 2004 Page 3 100% 1% 0% 1% 0% 60% 70% 80% 90% 100% List PriceCashLogisticsPOSMDF Distributor Sell-in Distributor POS/Perf. Net Price Seagate Pricing Model: Transparency 2% – 5% Off Invoice discounts range between 5% & 8% 0% 92%

4. IDEMA Conference November 4, 2004 Page 4 Pricing Transparency Predictability Distributor Business Proposition Demand/Pull Focus Visibility