Company Update Bank of America 36th Annual Investment Conference

1
Company UpdateBank of America 36th Annual
Investment Conference
September 2006
2
Forward Looking Statement

• The following information contains, or may be
  deemed to contain, "forward-looking statements"
  (as defined in the U.S. Private Securities
  Litigation Reform Act of 1995) which reflect our
  current views with respect to future events and
  financial performance. We use words such as
  "anticipates," "believes," "plans," "expects,"
  "future,"' "intends," "may," "will," "should,"
  "estimates," "predicts," "potential," "continue"
  and similar expressions to identify these
  forward-looking statements. All forward-looking
  statements address matters that involve risks and
  uncertainties. Accordingly, you should not rely
  on forward-looking statements, as there are or
  will be important factors that could cause our
  actual results, as well as those of the markets
  we serve, levels of activity, performance,
  achievements and prospects to differ materially
  from the results predicted or implied by these
  forward-looking statements. These risks,
  uncertainties and other factors include, among
  others, those identified in "Risk Factors,"
  "Management's Discussion and Analysis of
  Financial Condition and Results of Operations''
  and elsewhere in the companys 20-F filed with
  the SEC. Xyratex Ltd. undertakes no obligation
  to publicly update or review any forward-looking
  statements, whether as a result of new
  information, future developments or otherwise.

3
Company Highlights

• Ongoing growth in customer base
• 9 of worldwide external storage capacity shipped
  by Xyratex in 2005 and 13.6 in 2Q06
• Over 50 of the worlds hard drives are tested on
  Xyratex equipment
• Strong financial record over 25 consecutive
  quarters of positive growth
• Over 40 revenue CAGR since 1999

4
Quarterly Revenue Growth
289
263
(US millions)
204
190
169
164
143
117
115
119
108
99
86
77
76
74
61
60
66
49
43
36
36
Q1
Q2
Q3
Q4
2001
2002
2003
2004
2005
2006
25 periods of Year over Year Revenue Growth
Source Company
5
Why Xyratex

• Unique and deep perspective of data storage
• HDD technology to networked storage
• We enable you to focus on your core business
• Let us be the experts on building storage
  fundamentals
• We understand our customers and their customers
• HDD manufacturing to enterprise storage
  applications

• Sell Storage Systems only to OEMs and System
  Integrators
• Wont compete with you
• Key Enabler to HDD Production process
• We save you time and money
• Excellence in technology innovation
• Significant, wide-ranging intellectual property
• Long range storage technology view

6
Fueling the Explosive Demand

• Compliance
• Fixed Content
• Digital Imaging
• Archiving
• Digital Content Creation

• VTL
• D2D Backup
• Virtualization
• iSCSI
• Disaster Recovery

Source IDC

• 2/3rds of 2010 shipments will be on HC/LC disks

7

Xyratex Accessible External Storage Markets

Revenue Forecast (B)
Source IDC November 2005
8
Worldwide iSCSI External Storage Growth
Petabytes
Revenue (M)
Xyratex storage behind two of the top three iSCSI
SAN suppliers over 50 market share!
Source Company
9
RAID, SBOD EBOD Systems

• 5402-E
• 4Gb FC SAS/SATA RAID
• High capacity, high performance solution
• Mix up to 60 SAS and SATA drives
• Perfect for intensive applications from video
  streaming and medical imaging to data mining and
  online transactions
• Tiered storage in a single box!

• RS-1600/2-F4-SBD
• High performance 4Gb Fibre Channel SBOD
• Video editing and high bandwidth applications
• High-availability design
• RS-1603-E3-EBD
• High performance SAS EBOD
• The ultimate expansion enclosure for todays
  rapidly expanding storage market
• High-availability design

Flexible, Cost-Effective, High Performance
10
4835 Near-Line Storage System

• 48 SATA drives in a 4U enclosure
• Scale to 144TB in a single rack
• Innovative, high-availability design
• Ease of deployment and serviceability
• StorView - configuration and monitoring -
  anytime, anywhere
• 4835 is smaller, faster and more cost effective
  than tape!

Industry Leader in Near-line Storage Density
11
New customer wins 2006 YTD (Announced)

• 3PAR
• AutoDesk Inc.
• Disk Array and Systems Design, Inc. (DASDI)
• EqualLogic
• Globalstor Data Corporation
• Hitachi Global Storage Technologies
• Huawei-3Com
• Intel
• Nimbus Data Systems
• RAID Inc.
• Storage Engine, Inc.
• Terrascale Technologies

12
Xyratex Drive Integration and Test - CERT
Enhanced System Reliability

• Demonstrated to increase the reliability of
  product in the field by up to 300.
• Proven to remove the early life failures in a
  product life cycle.
• On average 3 of enterprise class SATA drives
  were returned to our suppliers before ever
  reaching the customer as potentially early life
  failures.
• After 6 months a non-CERT drive is 50 more
  likely to fail than a CERT tested drive.

Xyratex confidential
13
Storage Infrastructure Division
Key Enabler to HDD Production Process
14
3.5" HDD Desktop Market Share by GB/Disk
Source TrendFocus Storage Demand Analysis System
- Annual Studies '99 through '05
15
Significant Opportunities

• Seagate / Maxtor consolidation
• HDD Perpendicular Recording Technology deployment
• New HDD customer and process technology potential
  
• New Storage System customers volume growth
• High Density (SATA) Storage System growth
• Entry Level RAID growth
• gt 60 growth in Data Storage

16
Thank You