$35 Million Loan for STEC

This is a Press Release edited by StorageNewsletter.com on Wed, July 2nd, 2008

Coming from Wachovia Bank

STEC, Inc. has accepted a loan commitment from Wachovia Bank, National Association for a $35 million senior unsecured revolving credit facility with a term of two years bearing interest at a floating rate equivalent to LIBOR plus 0.70% - 1.20%, depending on the Company's leverage ratio at each quarter-end. STEC intends to use the proceeds from the credit facility to fund its working capital requirements, including the increasing inventory and accounts receivables of its growing SSD business. The Company believes the new credit facility together with its existing cash-on-hand, which was approximately $74 million at the end of the first quarter of 2008, will provide adequate liquidity to support expected accelerated growth in future quarters.

"This credit facility serves as a flexible backstop for our increasing working capital needs that go hand-in-hand with growing our business," said Manouch Moshayedi, Chief Executive Officer. "After careful consideration, we determined that this was the most efficient and cost-effective form of capital that we have available to us which is non-dilutive to our shareholders, and we can use as much or as little of it as the need arises."

The entry into the credit facility is subject to the satisfaction of a number of customary conditions and the negotiation and execution of definitive agreements. The Company expects that it will enter into the credit facility on or prior to July 30, 2008.

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