Maxtor to Restate First Quarter 2005 Results

(Auszug aus der Pressemitteilung)

MILPITAS, Calif., May 24 – Maxtor Corporation

(NYSE: MXO) today announced that it discovered a data entry error relating to
inventory and cost of goods sold in its previously issued unaudited interim
financial statements for the quarter ended April 2, 2005. As a result of the
data entry error, which is described in Maxtor’s Current Report on Form 8-K
dated May 24, 2005, inventory at April 2, 2005 was understated by $4 million,
cost of goods sold was overstated by $4 million, the net loss for the quarter
was overstated by $4 million and the net loss per share for the quarter was
overstated by $0.02 per share. Although the adjustment is not material to
inventory or cost of goods sold reported for the quarter, it is material to
the net loss and net loss per share previously reported for the quarter.
Accordingly, Maxtor will promptly file a Form 10-Q/A for the period ended
April 2, 2005 to restate its unaudited interim financial statements to reflect
these corrections.

The Company has implemented several additional measures, as described in
its Form 8-K, to minimize the risk of a repetition of the data entry error.
The Company is in the process of evaluating this data entry error to determine
whether it was the result of a material deficiency in the Company’s internal
control over financial reporting as of April 2, 2005. As part of this
evaluation process, the Company is also reviewing and analyzing the Securities
and Exchange Commission’s staff statement on Management’s Report on Internal
Control Over Financial Reporting released on May 16, 2005.

As reported in the Company’s Form 10-K/A for the fiscal year ended
December 25, 2004 filed with the Securities and Exchange Commission on May 13,
2005, management previously concluded that the Company did not maintain
effective internal control over financial reporting as of December 25, 2004
because of the material weakness in connection with the application of
generally accepted accounting principles in relation to complex, non-routine
transactions in the financial reporting process.

This data entry error will have no impact on the Company’s second quarter
financial results. There is no change from the Company’s previous guidance for
the second quarter reiterated in its Form 8-K dated May 18, 2005.