Stec to Repurchase Up to $40 Million of Common Shares

STEC, Inc. announced that its Board of Directors has authorized the repurchase of up to $40 million of its common shares. To facilitate the repurchase of the shares, STEC adopted a written plan pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the ’10b5-1 Plan’).

"Our management and Board of Directors continue to believe in the long-term value of STEC," said Manouch Moshayedi, STEC’s Chairman and CEO. "This $40 million stock repurchase program is in addition to the $15 million of STEC’s common shares repurchased earlier this month and reflects our confidence in STEC’s long-term fundamentals, growth prospects and strategy, and demonstrates our commitment to delivering shareholder value and realizing the full potential of our business and operations."

The repurchases may occur over a period beginning on September 15, 2011, continuing until the earlier of the completion of the repurchase or March 30, 2012, under the prices, terms and limitations set forth in the 10b5-1 Plan, including compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Because the repurchases under the 10b5-1 Plan are subject to certain pricing parameters, there is no guarantee as to the exact number of shares, if any, that will be repurchased. A Rule 10b5-1 Plan allows companies and individuals to repurchase shares at times when they would ordinarily not be in the market because of company trading policies or the possession of material non-public information.

As of August 29, 2011, STEC had approximately 50.06 million shares of common stock outstanding.