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New Xyratex third-generation storage system wins Intel Server & Storage Innovation Award

Company recognized for its innovation and leadership role in the server and storage industry at 2007 Spring Intel Developer Forum

Havant, United Kingdom, April 17, 2007—Xyratex Ltd. (NASDAQ: XRTX), a leading provider of enterprise class data storage subsystems and storage process technology, today announced that its new HS-1235E storage system was honored with the annual Intel® Server & Storage Innovation Award.  The Intel Server & Storage Innovation Award is presented each year at the semi-annual Intel Developer Forum (IDF) to recognize technological advancements and innovation.

Xyratex’s HS-1235E storage system is based on a third-generation Xyratex design and tightly couples the latest in storage, server and processing technologies.  Intel will offer the HS-1235E as part of their next generation SSR212MC2 and SSR212MC2R Storage Servers.  Recently introduced to Intel resellers, distributors and independent software vendors (ISV) worldwide, the SSR212MC2 and SSR212MC2R couple latest generation Intel® Xeon® processor technology with Xyratex’s world-class power, package and cooling technology. The resulting solution is a high performance, high availability, scaleable storage platform that seamlessly integrates with storage or networking intensive applications.

"Winning this award validates Xyratex’s commitment to driving storage platform innovation, integration and performance that meet the increased processing and storage requirements of today’s storage-centric applications," said Todd Gresham, executive vice president, Networked Storage Solutions division, Xyratex.  "At the same time, this award recognizes and highlights our successful relationship with Intel. Through that relationship, we are able to deliver standards-based, best-in-class storage value and processing technology to Intel customers worldwide.”

“Xyratex was selected for this award for their unique approach to product design on the HS-1235E,” said Mike Wall, Intel Storage Group general manager.  “Xyratex’s achievement highlights the company’s ability to deliver best-in-class functionality that can be easily integrated with and support a variety of high-performance applications.”

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 manufacturers with data storage products to support high-performance storage and data communication networks. Xyratex has over 20 years of experience in research and development relating to disk drives, storage systems and high-speed communication protocols.

Founded in 1994 in a management buy-out from IBM, and with its 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. For more information, visit www.xyratex.com.

Contacts:

Brad Driver
Xyratex Investor Relations
Tel: +1 (408) 325-7260
Email: investor_relations@xyratex.com

Nate Hermes
Schwartz Communications
Xyratex Public Relations
Tel: +1 (415) 512-0770
Email: xyratex@schwartz-pr.com


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