MAXTOR LAUNCHES NEXT GENERATION ONETOUCH DRIVE WORLDWIDE

Backup and Restore Your Digital World with the Touch of a Button

MILPITAS, CA, AUGUST 26, 2003 -- Maxtor Corporation (NYSE: MXO), a
worldwide leader in hard disk drives, today announced that the next
evolution of its external storage hard drives branded Maxtor OneTouch are
now available. Leveraging the successes of the preceding family (Personal
Storage 5000 with the OneTouch feature), Maxtor=92s new line of external har=
d
drives incorporates the award winning OneTouch button, Dantz Retrospect=D2
Express software and introduces a sleek new industrial design. Maxtor
OneTouch is the first push button backup and restore hard drive based
solution in the market today.

"Maxtor simplified external storage for the consumer with OneTouch," stated
Dave Reinsel, research manager with IDC. "Consumers today need features
like OneTouch backup, that are easy to use and seamless for storing and
protecting their digital world."

Maxtor OneTouch drives make it easy to store and make backup copies of
personal, business and family files, pictures, music, and digital video
clips, with the sophistication and style demanded of today=92s consumer. Wit=
h
capacities ranging from 120GB to 300GB, Maxtor marries speed, storage,
backup, and ease of use, in one streamlined package that outperforms any
external offering on the market. Whether a home user, graphic artist or
business professional -- storing, organizing, expanding or editing, the
Maxtor OneTouch drive can store your most treasured experiences, capture
your most precious moments, and keep them safe.

New Industrial Design
Maxtor introduces a new look and feel to external storage with the next
generation OneTouch. Featuring an anodized aluminum casing with illuminated
OneTouch button, the drive can sit vertically or horizontally, with
convenient plug and play capabilities.

New and Improved OneTouch Backup Button
Besides making instant backup copies of files, and/or automated backup
copies, the OneTouch button can be customized to auto-launch applications.
In essence, you can easily transform your Maxtor OneTouch drive into a
digital photo album, music jukebox or digital video player.

New User Features -- Including Desktop Disaster Recovery In combination
with the integrated Dantz Retrospect Express software, the Maxtor OneTouch
drive supports a complete system restore capability (operating system,
drivers, applications, settings and user files) for PCs and Macs back to
the original computer system that the backup copy was made from. So in the
event of a catastrophic event, the OneTouch drive can run a system recovery
to restore the computer=92s operating systems, programs and files. The Maxto=
r
OneTouch drive also features an on/off switch, and automatic power
management or drive "spin down" option to conserve energy.

High Capacity Storage -- Up to 300GB
Imagine -- with 300GB of storage you could store up to 300,000
high-resolution digital photos, 75,000 4-minute MP3 tunes, or 462 games.*

Mac-Formatted Version
As part of this new hard drive family, Maxtor is introducing a
Mac-formatted version specifically designed to bring those operating on a
Mac, an easy install experience coupled with the speed and performance Mac
drivers crave. Powered by an Oxford 911 chip, the drive comes pre-formatted
HFS+ and is ready for use right out of the box. The Mac formatted version
of Maxtor OneTouch comes in exclusive packaging and will be stocked in the
Apple sections of computer resellers and available through Mac direct
marketers and catalogs.

"Performance, versatility, value and ease are of highest importance to the
consumer," said Mike Williams, vice president of product marketing at
Maxtor. "By integrating in one external solution, a backup button, powerful
software technology, and a sleek design, Maxtor delivers what the market
demands," commented Williams. "Users can maximize their experience and
manage their digital life with simplicity, and have the assurance of
knowing their data is backed up."

"Having the opportunity to work with Maxtor again on the next generation of
the product was an exciting proposition for us," said Tony Barbagallo, vice
president of worldwide marketing at Dantz Development Corporation. "The
Maxtor OneTouch drive expands storage options for the consumer and business
professional in a dynamic way - and we are glad to be a part of it."

The Maxtor OneTouch products are compatible with both Macs and PCs and come
integrated with Dantz Retrospect Express software to easily customize data
backup and restore options.

Availability and Pricing
The Maxtor OneTouch family of products are shipping now and available
through Maxtor=92s network of global retailers, as well as the company=92s
on-line store, www.maxstore.com. The suggested retail price for the
120GB/7200RPM (USB 2.0) is $199.95, the 200GB/7200RPM (USB 2.0/FireWire
combo) is $299.95, the 250GB/7200RPM (USB 2.0/FireWire combo) is $349.95,
the 250GB/7200RPM Mac-formatted version is $349.95 and the 300GB/5400RPM
(USB 2.0/FireWire combo) is $399.95.

About Maxtor Corporation
Maxtor Corporation (www.maxtor.com) is one of the world=92s leading supplier=
s
of information storage solutions. The company has an expansive line of
storage products for desktop computers, storage systems, high-performance
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.maxstore.com or by calling toll-free (800) 2-MAXTOR. Maxtor is
traded on the NYSE under the MXO symbol.

Note: Maxtor is a registered trademark, 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 feature includes patent pending technology.

* Storage estimates are based on the following assumptions: each game is
650MB, each digital photo is a 1MB compressed file, each MP3 file is
4-minutes long, and one hour of DV video is 13GB. A gigabyte (GB) means 1
billion bytes. A megabyte (MB) means 1 million bytes. Total accessible
capacity varies depending on operating environment. The Maxtor OneTouch
serves as an element of an overall backup process and solution.