British-based disk and test system manufacturer targets global markets; establishes sales and support operation in Silicon Valley.

SAN JOSE, Calif.--(BUSINESS WIRE)--April 11, 1995--Xyratex, an independent company since accomplishing the largest management buy out in IBM history in December 1994, is targeting its growing international customer base by establishing its first U.S. operation.

The company, which specializes in the data storage and networking markets, is a major contract manufacturer of computer disk drives with unique skills and products in the areas of storage system testers and flexible circuits. Customers for these products and services include world leaders in computer systems design and storage technology, including Hewlett-Packard, IBM and Seagate.

Xyratex is on target for estimated first-year sales of $500 million. Commenting on the early move to establish a presence in the United States, chief executive Ken Wilkie said: ``We are competing in global markets with an international customer base, so we consider a presence in the Silicon Valley area an essential early move for Xyratex.

``Our purpose is to ensure that we can better support our customers in the U.S. and build sales in our key areas of specialization such as test systems and flexible circuits.''

The initial temporary office location is in San Jose, telephone [phone]. The company anticipates moving to a permanent location once its initial recruitment drive is completed. Xyratex is now recruiting to fill positions in sales, customer support and administration.

Xyratex's test systems are used when manufacturing and testing high precision disk drives. Drawing on the company's long experience in disk drive manufacturing, these test systems meet the requirements of the world's disk drive, controller and subsystem manufacturers, which together make up a $25-billion market.

Among the company's test systems is an SSA (Serial Storage Architecture) Test System. It is the only one available in the world from a team that has already accumulated more than 100 person- years of SSA experience. Other products include a Stress Test Rack for disk drive manufacturers and a Barkhausen Popcorn Noise Analyzer that measures and diagnoses noise-after-write instability in magnetic recording heads.

Xyratex was established as a new company in December 1994 following the management buy out of the former IBM Havant facility. Xyratex is a leading-edge information technology company that manufactures disk drives, storage systems, flexible circuits and networking equipment under its own name and under contract to other computer companies, including IBM.

In addition, Xyratex produces and markets test systems for disk drive manufacturers and provides network consultation and application software development services. More than 2,000 people work at the company's main location in Havant, United Kingdom, which was the recipient of a 1994 Queen's Award for Technological Achievement.

For further media information, contact in the United Kingdom, Richard Bailey, press officer, phone [phone]. In the United States, David or Bea Kaye at KPR Inc., 17057 Chatsworth St., Granada Hills, Calif. 91344, phone: [phone], fax: [phone], e-mail: dkayekpr("at-sign")aol.com.

For sales information, contact Xyratex in San Jose at 408/927-2700; in the United Kingdom, P.O. Box 6, Havant, Hampshire P09 1SA, United Kingdom; phone: [phone], fax: [phone].

CONTACT: Xyratex

Richard Bailey, 44 1705 443 181

or

KPR Inc.

David Kaye, 818/368-8212