Xyratex Completes Acquisition of Key Assets From ARIO Data Networks.

Acquisition of Key Assets Will Drive Growth and Innovation

HAVANT, England -- Xyratex Ltd. (NASDAQ:XRTX) announced today that it has completed its acquisition of key assets from ARIO Data Networks. Under the terms of the agreement, Xyratex acquired intellectual property, capital assets and skilled resources.

"ARIO's technology and resources create further opportunities for us in the growing storage market and will greatly enhance our strong portfolio of storage offerings," said Todd Gresham, executive vice president, Networked Storage Solutions division, Xyratex. "This transaction further cements Xyratex's leadership position and growth in the RAID storage business."

With the completion of this acquisition, key assets and employees will be integrated into the Networked Storage Solutions division of Xyratex to enhance its capability to deliver even more software value-add technology for its customers.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding future results or financial performance of Xyratex, including statements relating to the acquisition of certain assets of ARIO Data Networks strengthening Xyratex's position in the storage market. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include successful integration of ARIO Data Networks' assets and employees into Xyratex. These risks and other factors include those listed under "Risk Factors" and elsewhere in our Annual Report on Form 20-F as filed with the Securities and Exchange Commission (File No. 000-50799). In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

About Xyratex

Xyratex is a leading provider of enterprise 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 an MBO from IBM, and with 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.