Western Digital Predicts Sequential Revenue Growth Between 17% and 20%

At meetings with investors and analysts at an investment conference on Wednesday, December 5, 2007, Western Digital  executives will provide updates regarding current conditions in the hard drive industry and the Company’s outlook for the second quarter of fiscal 2008. Specifically, the Company expects to communicate the following:

• – Demand has remained strong and pricing has remained rational in the December quarter to date in all hard drive market categories and in all geographies.
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• – Hard drive industry assembly capacity remains constrained, with some products on allocation. Industry inventories are at significantly lower levels than at the same time last year.
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• –  As a result of these conditions — and the Company’s continued crisp execution and its flexible business model — WD now expects the following results in the December quarter:
• * Revenues in the range of $2.025 billion to $2.075 billion with earnings per share in the range of $1.02 to $1.06. The revenue estimate includes approximately $100 million of external media and substrate sales.
• * Gross margin at or above the high-end of its long-term model range of 15 to 20 percent.
• – Should these strong industry dynamics prevail for the balance of the December quarter, this condition potentially lays the groundwork for a better than traditional industry performance in the March quarter.
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• – The integration of WD’s new media operation continues to progress smoothly and on plan.

Western Digital Corp.