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Pat Martin, President & CEO, StorageTek: Page 8 of 12

Martin: Well, clearly, we're building an awful lot of future on the whole ATA subsystems. But, like I said, if you step back, what we are really building is the ability to offer customers a hierarchy of storage solutions. So, my view is, and I think this is the conventional view, that there is an awful lot of disk sitting in the marketplace today that is not used very well... We're all about going into customers that have already made huge investments in their storage areas, and complementing those investments with our own technology, both hardware and software, to allow them to more productively use their current storage environments.

NEXT: Storage Overseas

Byte and Switch: What about sales geographically? You mentioned that North America was doing better, but how bad is StorageTek being hurt by the whole lag in the economy in Europe, and especially in Germany?

Martin: We're pleased with the progress we're making in North America. We're very pleased with the progress we're making in Asia, but clearly, the challenge that everyone in this industry has right now is Europe, led by Germany. It has certainly been challenging for us to make many inroads there above where we were last year, so we're basically flat, is the best way to characterize it with last year. And I don't see those economies recovering in the short term. Certainly, I'm going to go over to Germany in September, when I'll have a better view, but right now we see the economies there still struggling.

Byte and Switch: Are you shifting your focus more toward Asia then?