Xyratex Expands Product Portfolio


Positions Xyratex for Growth in Media and Head Test Markets for Hard Disk Drives

HAVANT, England, Dec. 8, 2010 - Xyratex Ltd (Nasdaq: XRTX), a leading provider of enterprise class data storage subsystems and storage process technology, announced today that it has acquired the HDD component test related business and assets of Magnetic Recording Solutions, Inc. (MRS), including a 10 person development team. This acquisition expands Storage Infrastructure's portfolio in support of its growth and innovation strategy.

The acquisition immediately adds media burnish, glide and certify products to the Xyratex portfolio, and also adds significant expertise and technology related to media and head test systems and software. This expanded product portfolio coincides with the recent acquisition of the assets, as well as the development team, of Optical Systems Corporation (OSC). OSC is a respected provider of automated production technology to the disk drive industry.

A key element of Xyratex's business strategy is to expand its portfolio of test and process technology within the disk drive industry. The acquisition of MRS will combine Xyratex's industry-leading expertise in high volume disk drive test, servo writing, and media cleaning, handling and inspection technologies with MRS' extensive experience in complex media testing and head characterization.

"We are delighted to have the MRS team join our current business group," said Harold Lehon, executive vice president of the Storage Infrastructure business at Xyratex. "We are executing our growth and investment strategy within the Storage Infrastructure business, with a focus on broadening our customer base in our traditional product segments. In addition, we are aiming to penetrate into the areas of disk drive heads, media and substrate; expanding our product portfolio in the factories of HDD and component manufacturers. The acquisition of MRS and OSC is a key element of this strategy.

"Today's announcement gives us the opportunity to expand our activities within the storage market," added Vlad Pogrebinsky, president of MRS. "We believe moving forward with Xyratex will allow us to fully leverage our marketing and technology strategies."

About Xyratex

Xyratex is a leading provider of enterprise class data storage subsystems and storage process technology. The company designs and manufactures enabling technology that provides OEM and disk drive manufacturer customers with data storage products to support high-performance storage and data communication networks. Xyratex has over 25 years of experience in research and development relating to disk drives, storage systems and high-speed communication protocols.

Founded in 1994 in an MBO from IBM, and with headquarters in the UK, Xyratex has an established global base with R&D and operational facilities in Europe, the United States and South East Asia.

SOURCE Xyratex Ltd

CONTACT:

Brad Driver,

Investor Relations of Xyratex,

+1-510-687-5260,

bdriver@us.xyratex.com

Web Site: www.xyratex.com

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