Needham Conference New York, NY

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Needham ConferenceNew York, NY
Driving Storage Innovation
January 2008
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Forward Looking Statement

• The following information contains, or may be
  deemed to contain, "forward-looking statements"
  (as defined in the U.S. Private Securities
  Litigation Reform Act of 1995) which reflect our
  current views with respect to future events and
  financial performance. We use words such as
  "anticipates," "believes," "plans," "expects,"
  "future,"' "intends," "may," "will," "should,"
  "estimates," "predicts," "potential," "continue"
  and similar expressions to identify these
  forward-looking statements. All forward-looking
  statements address matters that involve risks and
  uncertainties. Accordingly, you should not rely
  on forward-looking statements, as there are or
  will be important factors that could cause our
  actual results, as well as those of the markets
  we serve, levels of activity, performance,
  achievements and prospects to differ materially
  from the results predicted or implied by these
  forward-looking statements. These risks,
  uncertainties and other factors include, among
  others, those identified in "Risk Factors,"
  "Management's Discussion and Analysis of
  Financial Condition and Results of Operations''
  and elsewhere in the companys 20-F filed with
  the SEC. Xyratex Ltd. undertakes no obligation
  to publicly update or review any forward-looking
  statements, whether as a result of new
  information, future developments or otherwise.

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Unique and Deep Understanding of Storage Market
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Revenue Growth
(US millions)
983.7
931.6
679.6
459
333.8
252.5
174.9
Source Company

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Quarterly Revenue
(US millions)
289
248
263
241
236
234
213
190
204
169
164
143
119
117
115
108
99
86
76
74
Q1
Q2
Q4
Q3
2006
2003
2005
2007
2004
Source Company
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Strong Balance Sheet Cash Flow
(US dollars in millions)
Q4FY06
Q4FY07


Net cash (debt)
49.9
70.7
161.9
129.3
Working Capital
410.3
375.7
Total Assets
273.3
234.5
Shareholder Equity

• Clean capital structure with net cash position
• Operating cash flow of 41.3m in FY07 134.4m
  over last 3 years
• Low CapEx requirements 1.5-2.5 of revenues

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Xyratex Global Presence
OVER 1,600 EMPLOYEES WORLDWIDE
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Fueling the Explosive Demand

• Security
• Global Standards
• Data Relevance
• Power Efficiencies
• Data Management
• Virtualization
• Eco-Friendly

• Compliance
• Fixed Content
• Data Services
• Archiving
• Digital Content Creation
• Digital Images

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Global Customer Relationships
Strategic Relationships Established with both
Market Technology Leaders
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NETWORKED STORAGE SOLUTIONSDisk-based storage
solutions to OEMs worldwide
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IDCs Worldwide Disk Storage System Suppliers
Source IDC, August 2007
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IDCs Worldwide Disk Storage System Suppliers
Snapshot of Xyratex Customers Direct
IndirectNetAppIBMNECXiotechData Direct
NetworksEqualLogicGroupe BullSGIRackableDynam
ic Network FactoryLeftHand NetworksCompellentSt
oneFlyOthers
Source IDC, August 2007 and Internal Analysis
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ECO-nomics Customers increase the focus on Data
center Operational Costs
What is the single biggest issue you currently
face?
Courtesy Liebert
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Storage Systems Product Portfolio
Advanced Management Software
Common Management Software StorView
Storage Application Support
Application Enabled Systems ABOD
HS-1235
RAID Data Protection
RAID Data Protected Systems RBOD
F5404E
Power Packaging and Cooling Foundation

• High Performance Storage Connectivity
• JBOD, SBOD, EBOD

Rx-160x JBOD
Rx-4835
RS-1220X
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Introduction of our OneStor Family
The Xyratex OneStor Family

• One Product Family for all your Storage Needs
• Common FRUs allow each family member to be
  configured as storage expansion, RAID Protected
  Storage or an Application Platform
• Reduces qualification time and inventory costs
• Reduces Time to Market for price/performance
  optimized configurations
• Common Storage Management GUI

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Integrated System Test (IST)

• Xyratex patented IST delivers
• Most thorough and patented test process
• Lowest warranty claims costs-gt1/4 to 1/2 of
  industry standard
• Highest MTBF rates-up to twice the
  manufacturers rate
• Reduced infant mortality- the 1st 90 days are
  the most expensive!
• Xyratex IST will
• Shorten your test process- get tomarket faster
• Reduce your test, warranty costs
• Increase the reliability of your product for
  business-critical environments
• Increase customer satisfaction

IST
CERT
Source Xyratex
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STORAGE INFRASTRUCTURECapital Process Equipment
to the Disk Drive Industry
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New Capital Equipment Product Families
HDD - MEDIA Process
HDD - Assembly and test
Solar PV
Automation factory Logistics
Automation factory Logistics
Automated High volume Test
High throughput Cleaning
Precision Cleaning
Servo Track Writing Precision Mechanics High
frequency Electronics
.. more
Optical Inspection
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Why Solar?

• Based on very real Global issues
• Growing energy demand
• Carbon based fuels are a finite resource
• Increasing concerns on Carbon emissions
• Increased desire for energy independence
• Solar is a real solution
• No emissions
• Can be distributed or concentrated
• Can be scaled
• Technology demonstrated
• Result is Strong Solar PV market
• CAGR 20-30 overall, 30-60 Thin Film
• Equipment market 1.3 billion in 2006 with
  potential to be 4-6B in 2011
• VC community agrees 10 VC funding goes to
  renewable energy segment
• PV industry raised 4B in equity and debt funding
  in 2006 up more than 2x 2005
• PV related stocks at very high P/E, and doubled
  in first 6 months 2007.

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Corporate Summary

• We see continued growth in the overall storage
  market
• The business continued to be profitable and cash
  generative during a challenging period in line
  with company projections.
• We have sustained growth in the NSS business and
  strengthened customer relationships
• Our analysis and customer forecasts support a
  return to normalised demand from SI customers
  in 2H08.
• We continue to invest in the growth opportunities
  we see in both businesses, and continue to
  embrace our globalisation strategy

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Thank You