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STEC, Inc. (Nasdaq:STEC)

STEC, Inc. (Nasdaq:STEC). 2008. Company Highlights. Leading provider of customized Flash memory and DRAM solutions Proprietary technologies focused on the burgeoning SSD markets. Headquarters Orange County, CA Total Employees 665 NASDAQ Ticker STEC IPO Date September 2000 Date Founded

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STEC, Inc. (Nasdaq:STEC)

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  1. STEC, Inc.(Nasdaq:STEC) 2008

  2. Company Highlights • Leading provider of customized Flash memory and DRAM solutions • Proprietary technologies focused on the burgeoning SSD markets Headquarters Orange County, CA Total Employees 665 NASDAQ Ticker STEC IPO Date September 2000 Date Founded 1990

  3. Global Scale Japan Office Hong Kong /China Offices Europe Offices US Headquarters Taiwan Office Malaysia Campus

  4. Expertise Across the Full Range of SSD / Flash Competencies Field Support Uniquely positioned to add value across the full range of competencies Manufacturing Test, Temp screening Storage System Dev High density, high reliability Flash Management Wear leveling, SLC/MLC support Flash Controller Data Integrity, High Density, High Performance

  5. Avionics • Data Recorder • In-flight Entertainment Handheld Electronics • GPS System • Barcode Reader • Mobile phones Medical • Defibrillator Factory Automation • Robot Control Wide Range of OEM Flash Applications Networking & Enterprise • Enterprise Servers • Enterprise Storage • Routers • Switches • VOD and Media Servers PC Computing • Notebooks Telco • DSLAM • Router • Switch • Voicemail System Defense • Mission Data Recorder • Field-wearable Computer Kiosk / Gaming • Voting Machine • Video Poker Machine • Gaming Devices/Consoles

  6. Capitalizing On the HDD-Replacement Trend in 3 Distinct Markets Common Thread: High Reliability Enterprise Computing Notebook PC Telecom / Industrial • Access times • Ultra-high throughput • HDD-replacement • Cost effectiveness • Performance enhancing • Low-capacity, • Small form factor Key specifications: • Enterprise Storage • Enterprise Servers • Database storage • Video on Demand • Notebook PC • Portable computing applications • Comm. equipment • Medical equipment • Casino gaming machines Specific applications: • Long boot times and application loading times • Short battery life • HDD failure results in loss of OS and system performance information • Long product life cycles exceed duration of HDD • Processor and bandwidth capabilities outstrip storage • Current infrastructure cannot scale to meet customer demands Technological Challenge: MACH8MLC SSD Industrial-grade CF, PC card and single chip drive STEC Solution: ZeusIOPS SSD, MACH8IOPS SSD

  7. ZeusIOPSfor the Enterprise Storage Market

  8. ZEUSIOPS SSD Product Details • Capacity • 3.5-inch: 18 to 300 GB • Interfaces • Fibre Channel, SATA • Sustained Throughput • Read = 240 MB/s • Write = 115 MB/s • Random Operations • Read = 52,000 IOps • Write = 17,000 IOps • Applications • Enterprise-class storage systems, online transaction processing, video-on-demand, web serving/data caching, metadata logging, telecommunications, data mining/warehousing • Highlights • 200 times faster than enterprise-class HDDs • Significantly reduces customers T.C.O.

  9. MACH8IOPSfor the Enterprise Server Market

  10. MACH8IOPS SSD Product Details • Capacity • 2.5-inch: 16 to 128 GB • 1.8-inch: 8 to 64 GB • Interfaces • SATA, PATA • Sustained Throughput • Read = 100 MB/s • Write = 100 MB/s • Random Operations • Read = 10,000 IOps • Write = 800 IOps • Applications • Enterprise-class servers and storage systems

  11. MACH8IOPS Provides a Compelling Value Proposition in the Enterprise Computing Environment

  12. MACH8MLCfor the Notebook Market

  13. MACH8MLC SSD Product Details • Capacity • 2.5-inch: 64 to 512 GB • 1.8-inch: 32 to 128 GB • Interfaces • SATA, PATA • Sustained Throughput • Read = 90 MB/s • Write = 60 MB/s • Applications • Notebooks • Other portable computing applications

  14. MACH8MLC is a High-Capacity, Cost-Effective HDD Replacement for Notebook PCs

  15. The Growth of the Notebook Market is Compelling Portable PCs Overall PC Units in thousands CAGR 10% Units in thousands CAGR 23% Source: IDC, October 2007 Source: IDC, October 2007 • PC market is experiencing robust growth, particularly in the portable segment • According to DisplaySearch, notebook sales rose 41% in 2007 • Key drivers of portable PC growth include: • Falling prices • Narrowing the performance gap compared to desktops • Improving wireless connectivity • Expanded access through retail channels • Size of the portable segment increased 2X from 2004 to 2007 and is expected to double again by 2011 (and is expected to represent >50% of all PCs)

  16. R&D Overview

  17. R&D Investment Indicators R&D Spend # of Engineers New Design Wins Patents (Pending and Issued)

  18. Malaysia Operation

  19. STEC Malaysia: Foundation for Growth

  20. 210,000 ft2 of Operating Capacity Admin and R&D Offices Production Area Warehouse Production Area

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