STEC, Inc.(Nasdaq:STEC)

20082008

2

Company HighlightsCompany 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

US Headquarters

Malaysia Campus

Europe Offices

Taiwan Office

Japan Office

Hong Kong /China Offices

4

Expertise Across the Full Range of SSD / Flash CompetenciesExpertise Across the Full Range of SSD / Flash Competencies

Flash ControllerData Integrity, High Density, High Performance

Flash Management Wear leveling, SLC/MLC support

Storage System DevHigh density, high reliability

ManufacturingTest, Temp screening

FieldSupport

Uniquely positioned to

add value across the full

range of competencies

6

Kiosk / Gaming

Wide Range of OEM Flash ApplicationsWide Range of OEM Flash Applications

DSLAM Router Switch Voicemail System

Telco

GPS System Barcode Reader Mobile phones

Handheld Electronics

Notebooks

PC Computing

Mission Data Recorder Field-wearable Computer

Defense

Robot Control

Factory Automation

Data Recorder In-flight Entertainment

Avionics

Defibrillator

Medical

Voting Machine Video Poker Machine Gaming Devices/Consoles

Enterprise Servers Enterprise Storage Routers Switches VOD and Media Servers

Networking & Enterprise

7

Capitalizing On the HDD-Replacement Trend in 3 Distinct MarketsCapitalizing On the HDD-Replacement Trend in 3 Distinct Markets

• Enterprise Storage• Enterprise Servers• Database storage• Video on Demand

• Processor and bandwidth capabilities outstrip storage

• Current infrastructure cannot scale to meet customer demands

Enterprise ComputingEnterprise Computing Notebook PC Notebook PC Telecom / IndustrialTelecom / Industrial

• Notebook PC• Portable computing

applications

• Long boot times and application loading times

• Short battery life

• Comm. equipment • Medical equipment• Casino gaming machines

• HDD failure results in loss of OS and system performance information

• Long product life cycles exceed duration of HDD

Specific applications:

Technological Challenge:

ZeusIOPS SSD, MACH8IOPS SSD

MACH8MLC SSDIndustrial-grade CF, PC

card and single chip drive

STEC Solution:

Common Thread: High Reliability

• Access times• Ultra-high throughput

• HDD-replacement• Cost effectiveness• Performance enhancing

• Low-capacity, • Small form factor

Key specifications:

ZeusIOPS

for the Enterprise Storage Market

9

ZEUSIOPS SSD Product DetailsCapacity

– 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.

MACH8IOPS

for the Enterprise Server Market

11

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

12

MACH8IOPS Provides a Compelling Value Proposition in the Enterprise Computing Environment

Needs of Enterprise Applications MACH8IOPS Benefits

Exceptional write IOps10x improvement in write IO performance relative to HDDs

Exceptional read IOps40x improvement in write IO performance relative to HDDs

High sustained throughputSustained read/write throughput of 100/100 MB/s

Data protection

Total drive wear leveling, full data path protection, and the most robust ECC protection available in an SSD today

Security Native hardware encryption

MACH8MLC

for the Notebook Market

14

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

15

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

Needs of Notebook PCs MACH8MLC Benefits

Cost effective storageDramatically improved cost/MB over SLC

Faster boot times Reduces boot time compared to HDD

Faster application loading timesReduces application loading times compared to HDD

Longer battery life Consumes less power than HDD

PortabilitySmall form factor, low weight and zero noise

Data protectionTotal drive wear leveling and full data path protection

ReliabilityThe most robust ECC protection available in a SSD Drive today

Reduced heat Produces less heat compared to HDD

16

The Growth of the Notebook Market is Compelling

Overall PC Overall PC Overall PC Overall PC Portable PCsPortable PCsPortable PCsPortable PCs

CAGR 23%CAGR 10%

Source: IDC, October 2007 Source: IDC, October 2007

0

50,000

100,000

150,000

200,000

2004 2007 2011

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100,000

200,000

300,000

400,000

2007 2008 2009 2010 2011

• 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)

Units in thousands Units in thousands

R&D Overview

18

# of Engineers# of Engineers# of Engineers# of Engineers R&D SpendR&D SpendR&D SpendR&D Spend

Patents (Pending and Issued)Patents (Pending and Issued)Patents (Pending and Issued)Patents (Pending and Issued) New Design WinsNew Design WinsNew Design WinsNew Design Wins

R&D Investment Indicators

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Malaysia Operation

20

STEC Malaysia: Foundation for Growth

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210,000 ft2 of Operating Capacity

Production Area Admin and R&D Offices

Production Area Warehouse