Maxtor and Microsoft Sign Deal To Feature Microsoft Software On New Maxtor NAS File Servers

MILPITAS, Calif., and REDMOND, Wash., March 5, 2001 — Maxtor® Corp. and Microsoft Corp. today announced a new class of network attached storage (NAS) file server products based on Microsoft® Windows® 2000 operating system technologies. By combining Maxtor’s unique enterprise ATA hard drives and NAS technology with Microsoft Windows Powered software, the new class of NAS file server products create broadly interoperable file serving, seamless integration and high manageability at an acquisition cost as low as 2 cents per megabyte.

“Strategically, Maxtor now has access to the world’s strongest NAS operating system, total control over all aspects of hardware — including our own uniquely configured hard disk technology — and the ability to add significant value for ease of use and performance through our own software core competencies and hard-drive firmware,”
said Mike Cannon, president and CEO of Maxtor.

“Microsoft is excited that Maxtor has chosen to base its new file server architecture on Windows 2000,”
said Bill Veghte, vice president of the Embedded and Appliance Platforms Group at Microsoft.
“By utilizing Windows 2000, Maxtor is able to provide its customers with an NAS solution that offers superior performance, scalability and manageability at a very attractive price point.”

“Our new NAS platform delivers superior value over other architectures based around alternative operating systems, including Linux,”
said Victor Jipson, president of the Network Systems Group at Maxtor.
“By utilizing the functionality and robustness of Windows 2000 technologies, we deliver the interoperability, manageability and ease of integration features that our customers value most.”

Maxtor’s first Windows Powered NAS file server was also announced today and is being shipped immediately. The MaxAttach™ NAS 4100 file server is compatible with industry-leading storage-management and data-backup tools from vendors such as VERITAS Software Corp., Legato Systems Inc. and Computer Associates International Inc., and enables centralized management through device-management tools such as HP Open View. The NAS file server integrates with directory services, including Microsoft Active Directory™

Unique Maxtor technology elements include system enhancements that double the performance of previous-generation MaxAttach file servers. Maxtor has introduced a high-performance gigabit Ethernet, up to 100 times faster than traditional Ethernet. A SCSI port enables local backup to tape drives and libraries. Dual 10/100 Ethernet ports add robustness and fault tolerance.

Maxtor MaxAttach NAS 4100 is available in 160GB and 320GB configurations from resellers such as Bell Microproducts Inc., Ingram Micro Inc. and Tech Data Corp. Suggested pricing starts at $3,299.

About Maxtor

Maxtor is a leading supplier of information storage solutions. The company’s current hard-drive products include the award-winning DiamondMax Òand DiamondMax Plus line of products for mainstream and high-performance personal computers and consumer electronics applications, as well as the DiamondMax VL line for entry-level PCs. Maxtor also offers a new 1394 External Storage™
solution and the MaxAttach family of network attached storage servers.

Maxtor’s leadership position has been built by consistently providing leadership products and by delivering high levels of quality and support for its customers. More information about Maxtor and its products can be found at or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on the Nasdaq under the

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

This announcement relating to Maxtor may contain forward-looking statements concerning future technology, products incorporating that technology and Maxtor’s execution. These statements are based on current expectations and are subject to risks and uncertainties that could materially affect the company’s results, including, but not limited to, market demand for hard-disk drives and server appliances, the company’s ability to execute future production ramps and utilize manufacturing assets efficiently, pricing, competition, and the significant uncertainty of market acceptance of new products. These and other risk factors are contained in periodic reports filed with the SEC, including, but not limited to, Maxtor’s most recent form 10-K for fiscal 1999 and its recent 10-Qs.

Microsoft, Windows and Active Directory are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Maxtor, the Maxtor logo and DiamondMax are registered trademarks of Maxtor Corp. MaxAttach and 1394 External Storage are trademarks of Maxtor Corp.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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