Business & Money Trail:

WESTERN DIGITAL TO SELL ASSETS OF SANavigator TO McDATA CORP

Western Digital Corp announced that it has agreed to sell the assets of its SANavigator Inc subsidiary, a leader in storage area network management (SAN) software, to McDATA Corp for $29.75 million in cash. Western Digital and McDATA have signed a definitive agreement and the transaction is expected to close in September, subject to customary closing conditions.

With the sale of SANavigator to McDATA, Western Digital is capturing return on one of its new venture investments and taking another step to sharpen focus and resources on its hard drive business. Western Digital has indicated it would minimize operating expenses associated with its new ventures through accretive performance, outside financing, or restructuring. Recently, it announced $5.5 million in external funding for its Keen Personal Media subsidiary and the sale of the assets of its Connex Inc subsidiary to Quantum Corp.

Matt Massengill, president and CEO of Western Digital, said, "While maintaining a lean operating model suited for the rigors of our core hard drive business, Western Digital remains committed to building business opportunities beyond the traditional desktop PC market by maximizing our core competencies. A good example of this would be our personal video recorder software expertise through Keen Personal Media. In the case of SANavigator, we were successful in developing a startup company with a strong set of SAN software capabilities, which McDATA is now best suited to nourish given its significant position in the SAN market and the rapid changes the SAN industry is undergoing."

About Western Digital

Western Digital, one of the storage industry's pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The Company's core business produces reliable, high-performance hard drives that keep users' data close-at-hand and secure from loss.

Applying its data storage core competencies to emerging markets, Western Digital's new ventures meet the increasing demand for innovative information management solutions arising from the proliferation of the Internet and broadband services. Keen Personal Media helps cable TV MSOs build their brand and revenue by providing personal video recording technology and services. Cameo provides personalized digital video entertainment for consumers. SageTree is a software company providing enterprise manufacturing and supply chain analytic applications.

Western Digital was founded in 1970. The Company's storage products are marketed to leading systems manufacturers and selected resellers under the Western Digital brand name. Visit the Investor section of the Company's Web site, www.westerndigital.com, to access a variety of financial and investor information.

Contact Steve Shattuck, Public Relations, 949-672-7817, steve.shattuck@wdc.com of Western Digital Corp.