Maxtor OneTouch II

FOR IMMEDIATE RELEASE
Monday, September 20, 2004 at 5 AM PDT

NEW MAXTOR ONETOUCH II DRIVE RAISES THE BAR IN CONSUMER BACKUP

Maxtor Brings Consumers the First External Backup Solution to Feature Simpler Backup, Added Security and More Powerful Restore Capabilities

MILPITAS, Calif., September 20, 2004?Simple, safe and powerful describe the new Maxtor OneTouch(TM) II drive, the next generation of Maxtor Corporation’s (NYSE:
MXO) award-winning external drive family that allows consumers to easily back up family photos, MP3 music collections, and other important personal and business data with a simple touch of a button. No high tech knowledge is required to set up the new drive, giving consumers no excuse to not backup their computers.

Leveraging the company’s first-to-market leadership and proven expertise in external storage and push button backup, the new Maxtor OneTouch II drive offers an exclusive version of Dantz(R) Retrospect(R) software for easy backup, a Maxtor DriveLock(TM) security feature for added data protection and more powerful restore capabilities, including historical backup recovery.

“Combine all this with a new, consumer-friendly user interface, and now the most difficult part of a backup solution may be choosing which capacity Maxtor OneTouch II drive to buy,” said Mike Williams, vice-president of marketing for Maxtor’s Branded Products.

“The new Maxtor OneTouch II drive is unequaled in its intuitive functionality,”
he said. “We listened to our customers and incorporated features and functions that improve upon our existing solution. The Maxtor OneTouch family continues to be the leading external hard drive for consumers, creative professionals, mobile warriors and small-business users.”

New features of the Maxtor OneTouch II external drive include:

— Simpler backup?No complex menus or commands or in-depth technical knowledge
are required to set up the Maxtor OneTouch II drive. The new click-through installation asks a few simple questions such as the user’s name and preferred language, while configuring the software in the background to automatically back up all locally connected drives and files on the computer every day. This powerful, yet simple, default setting backs up virtually everything on the local drives including all Microsoft Outlook emails, address books, Internet favorites, My Documents folder, operating system, applications and more. Once installed, the Maxtor OneTouch II drive runs quietly and automatically. Users do not even have to close an application or a file for the drive to back up the saved versions.

— DriveLock security?The Maxtor OneTouch II also offers Maxtor’s new DriveLock
feature for added data protection. This feature allows users to password-protect the contents of the drive, keeping important data safe from unauthorized users.
Once a consumer powers down the computer, or the drive is removed from the system, access to the drive will be automatically locked until the correct user defined password is provided.
— More powerful restore?If data is lost, restoring a backed up copy from the
Maxtor OneTouch II drive to the source system is simple. With historical backup copies, users can restore their entire system to its backed up status from yesterday, two days ago or even two weeks ago. The user is simply guided though a three-step process that includes clicking on the desired point in time, selecting the files or folders to restore and then choosing the destination for the restore. The drive also self-manages its storage space and deletes older backup versions as the drive fills up.
— New user interface?Maxtor has redesigned the graphical user interface from
the ground up so that installation and setup are easier than ever. The wizard has an exclusive design that combines storage, security and backup in a single solution, in contrast to other offerings that only drop in software without integration

— Mac® bootability function*? Mac users have the option to create a fully
bootable backup copy of their main system drive. Once a bootable backup copy is made, users can restart their system quickly using their Maxtor OneTouch II drive as if it were their system drive. Nothing needs to be moved or disconnected.
— New look?The Maxtor OneTouch II drive sports a new, sophisticated, contemporary
look that suits a home or office setting and distinguishes it from competing products.

“Maxtor has helped make external storage and backup solutions a popular and growing consumer market category,” said Larry Zulch, CEO and president of Dantz. “It’s been a pleasure working with Maxtor to develop Retrospect Express HD backup software for their next generation Maxtor OneTouch II drive. The Maxtor OneTouch II is a significant achievement in consumer data protection, combining true backup power and honest ease of use.”

Pricing and Availability
The new Maxtor OneTouch II external drive comes with a 7200RPM 300GB or 250GB hard drive with a 16MB buffer. Both feature a combo FireWire®/USB 2.0 interface for easy connection to a Mac or PC. The drives are available through Maxtor’s network of leading retailers, distributors and online stores. They are also available at www.maxstore.com . Suggested retail price is $379.95 for 300GB and $329.95 for 250GB. Additional capacities will be rolled out later this year. For more detailed information on the Maxtor OneTouch II drive and its new features, please visit www.maxtor.com.

About Maxtor
Maxtor Corporation (www.maxtor.com ) is one of the world’s leading suppliers of hard disk drives and data storage solutions. The company has an expansive line of storage products for desktop computers, storage systems, high-performance Intel-based servers, and consumer electronics. Maxtor has a reputation as a proven market leader, built by consistently providing high-quality products and service and support for its customers. Maxtor and its products can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on the New York Stock Exchange under the symbol MXO.

Note: Maxtor and the stylized Maxtor logo are registered trademarks and Maxtor OneTouch is a trademark of Maxtor Corporation. Dantz and Retrospect are registered trademarks of Dantz Development Corporation. Mac and FireWire are registered trademarks of Apple Computer. All other trademarks are property of their respective owners.

The Maxtor OneTouch drive is an element of a user’s overall backup solution and protection plan. For purposes of measuring disk drive storage capacity, one gigabyte
(GB) represents one billion bytes. The number of historical backup versions depends on the backup file size and total available capacity of the Maxtor OneTouch II drive. *The Mac bootability feature is available using Mac OS X with the FireWire interface only.

This announcement relating to Maxtor may contain forward-looking statements concerning future technology, products incorporating that technology, and Maxtor’s execution.
These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company’s results, including, but not limited to, market demand for hard disk drives, integration of the company’s products with products produced by others, the company’s ability to execute future production ramps and utilize manufacturing assets efficiently, pricing, competition, and the significant uncertainty of market acceptance of new products and technologies.
These and other risk factors are contained in documents that the company files with the SEC, including the Form 10-K for fiscal 2003 and its recent 10-Qs.
Maxtor is under no obligation to, and expressly disclaims any responsibility to update or alter, its forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Media Relations:
Erin Hartin
Maxtor Corporation
(303) 678-2022
erin_hartin@maxtor.com

Investor Relations:
Jenifer Kirtland
Maxtor Investor Relations
(408) 324-7056
jenifer_kirtland@maxtor.com