Exhibit 99.1

A Commitment to Make the Right Investments

• Head operation requires annual capital investment in the range of $70M to $90M and an annual R&D investment of ~$45M
• This investment plan provides capability to achieve near-term goals and to meet needs for foreseeable future

• Commitment to make R&D investments geared toward achieving competitive next-generation technologies

Head Integration Summary

• Execution of head integration is on plan
• Solidly accretive to December quarter financial performance
• Realizing unique advantages from co-location of manufacturing, R&D
• All OEM customers have qualified WD heads
• WD head operation currently focused on high-volume 80 GB per platter production
• Continue to work with merchant head suppliers on significant part of the business
• On target to have capability of producing up to 30M heads quarterly by June 2004

The WD Advantage - Focus and Discipline

Wafer Fab improvements

• 90% reduction of product configurations
  • 75% reduction in process recipes
  • 70% reduction in masks
  • 100% reduction in schedule changes
• Wafer fab metric improvements
  • Wafer capacity increased 80%
  • R&D wafer allocation increased 400%
  • FY'04Q2 wafer cost 25% below last meaningful RR baseline
  • Wafer scrap lowest ever achieved (December record setting)
  • Wafer yield in FY'04Q2 best ever for this fab under any management

The WD Advantage - Focus and Discipline

Slider/HGA/HSA Improvements in Thailand

• Space and asset utilization improvements through working pattern, work cell and process flow revisions
  • 42% increase in asset utilization (capacity / $ invested)
  • Units per person improvement: HGA 73%, HSA 104%
  • Units per sq ft improvement: HGA 50%, HSA 260%
• Labor cost savings through pay structure/benefits, and headcount revisions
  • Reduction of 25% on average direct labor $/hour
  • Exempt/non-exempt pay adjusted 16% from 'fixed' to 'variable'
  • Reduced exempt/non-exempt count by 11%

WD Head Technology Status

• Next generation (120+ GB/platter)
  • Based on solid current design platform
  • WD is well positioned to support next areal density point
  • Comparable with best-in-class merchant head vendor
• Competitive Assessment

Overall Technology Readiness	x
Performance	Ø	Ø	Ahead of Competition
Manufacturability	Ø	x	On par
Time-to-Market	x	¨	Behind Competition
Integration into Drive	x

• Overall assessment
  • In most key attributes superior or on par performance
  • Significant progress made since Aug. 2003

Perpendicular Recording Head Development

• Overcome writeability challenge by increasing write field at the disk
  • System level change
  • Synchronized development with the leading disk supplier
• Commercialization expected at 120/160 GB/platter and beyond
  • Extendable to 500 GB/platter - 1000 GB/platter
• Current head development focus is design for performance and manufacturability
• Focus on two design options
• Significant WD intellectual property on design and process
• Drive integration effort launched

Perpendicular Recording Head Development

• Competitive assessment
  • Perpendicular Recording Head competitive positioning

Performance	Ø
Manufacturability	x	Ø	Ahead of Competition
Time-to-Market	x	x	On par
Integration into Drive	¨	¨	Behind Competition

• Milestones
  • Drive system integration plan in place to close the gap
  • 80 GB/platter in drive read/write data function complete
  • 160 GB/platter head demonstrated at component level

FY'04Q3 Guidance Provided on January 22, 2004

• Revenue of between $715M and $750M
• Gross margin of approximately 16.5%
• Operating income of between $46M and $50M
• Net income of between $44M and $48M
• EPS of between $0.20 and $0.22

WD's New Business Model

	Old Model	New Model
Gross margins	14% - 18%	18% - 22%
Operating margins	4% - 8%	7% - 11%
Inventory turns	20 - 22	18 - 20
Cash conversion cycle	-7 days to -10 days	-4 days to -7 days