Press Release - Xyratex

HG Capital Trust PLC
24 June 2004


The following is the text of a press release issued by HgCapital, manager of the
investment portfolio of HgCapital Trust plc.  The trust participates in all of
HgCapital's investments.


             'Xyratex IPOs with a market cap of over $400 million
           HgCapital sees sharp uplift in its investment in Xyratex


London, 24 June 2004.   HgCapital, a leading investor in the European private
equity market, will today see its investment in Xyratex, a global provider of
enterprise-class storage subsystems and storage process technology, increase to
over $145 million based on the agreed price of $14 per share, when Xyratex makes
its initial public offering on NASDAQ. HgCapital's investment of approximately
£50 million ($90 million), made in September 2003, was valued at more than $145
million at the IPO price.  Xyratex opted for a US listing on NASDAQ, primarily
because most of its business is carried out with US-centric customers.

Xyratex will sell 4,000,000 shares of its common stock at $14 per share.
Existing shareholders will sell 2,956,522 shares at the time of the IPO and the
underwriters in the initial public offering have an option to purchase a maximum
of 1,043,478 shares from the selling shareholders, including HgCapital, to cover
over allotments, if any.  HgCapital will sell 1,367,391 of its shares at the
time of the IPO and up to a further 482,609 shares if the underwriters purchase
the maximum possible number of shares to cover over allotments.  HgCapital will
retain over 82% of its Xyratex shareholding after the IPO.

HgCapital Trust plc's holding in Xyratex, which cost £8 million, was valued at
£12.8 million at the IPO price.  The trust will sell shares for £1.6 million in
cash and will retain a stake today worth £11.2 million.  In accordance with BVCA
valuation guidelines, a discount of 25% will be applied to the price to reflect
the six-month lock-in period and stock liquidity levels.

HgCapital had been identifying opportunities in the data storage market because
of two favourable trends at play.  Firstly, a dramatic increase in the volume of
data that is being captured, processed and stored from critical business
applications such as e-mail communications and the Internet which have fuelled
an increase in demand for data storage capacity, and, secondly, the related
proliferation of technologies that has emerged to address the complex
requirements of network storage and the resulting increase in technology
outsourcing by leading OEMs. Xyratex was particularly appealing because it has a
leading position in specific sub-segments of the network storage market, which
is estimated to grow from $7.8 billion in 2003 to $12.5 billion by 2007.

HgCapital supports a strategy that has three key components:

•    Strong revenue growth from continuing businesses, driven by a leading
     reputation for technical innovation and product quality.

•    Capitalizing on and expanding Xyratex's technical expertise and
     continuing to introduce innovative products.

•    Expanding into complementary markets in data storage and networking,
     through, among other things, acquisitions such as the acquisition in 
     February 2004 of ZT Automation, which had revenues of $24 million in 2003.

A team of experienced managers led by Xyratex's Chief Executive, Steve Barber,
is charged with executing the strategy.

Nic Humphries, who heads HgCapital's technology team, led the investment and
remains on the Board.   Leo Dee, Alex Shivananda and a former HgCapital 'manager
in residence', Chris Hutchings, all worked on the original investment.
HgCapital was the most active investor in mid-market European technology
buy-outs in 2003.

Steve Barber, Chief Executive of Xyratex, said, 'The Xyratex management team
view the relationship with HgCapital very positively and value their continued
presence on our board. Nic and his team have consistently provided sound advice
and good counsel on a wide variety of investment areas.'

Nic Humphries said, 'Xyratex increased its revenues from $83.6 million in its
fiscal year ended November 30, 1999 to $333.8 million in its fiscal year ended
November 30, 2003.  It is a UK-founded company that has expanded globally over
the last decade and is now an established leader in key segments of the external
storage and networking markets with a presence in the United States, Asia and
Europe. We continue to remain a significant shareholder in the business because
we believe management's growth strategy will be successful.'  HgCapital has a
successful history of being a supportive long-term investor in its publicly
listed investments.

Immediately prior to the IPO Andy Sukawaty was invited to join the Board.  He
has over 23 years' experience of building significant shareholder value in the
telecoms sector in the UK and USA. He oversaw the successful privatisation of
NTL which was instigated and managed by HgCapital, and as CEO of Sprint PCS, led
a team that grew the company into the fastest growing wireless provider in the
United States.  Mr. Sukawaty is also chairman of the board of directors of
Inmarsat, the worldwide mobile satellite services provider, and the chief
executive officer of Cable Partners Europe LLC, which invests, operates and
manages cable television services throughout Europe.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities of Xyratex or
HgCapital Trust plc in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws of
any such state.


For further information contact:

Ian Armitage, CEO, HgCapital                                 [phone]
[e-mail]

Nic Humphries, Director, HgCapital                           [phone]
[e-mail]

David Bick/Trevor Phillips                                   [phone]
Holborn

Brad Driver, Xyratex Investor Relations                      [phone]
[e-mail]


Note to editors:

HgCapital invests in six sectors: consumer, healthcare, industrials, leisure,
media and technology.

HgCapital is a leading investor in the European private equity market and has
offices in the UK and Germany.  It focuses on companies with enterprise values
up to €400 million.

HgCapital's other technology investments include the public to private buy-out
of Rolfe & Nolan, which recently announced a trebling of profits, its most
successful trading period in its 30-year history, 12 months after its
acquisition by HgCapital, Watchmark-Comnitel, Axiom, Acuid and Bottomline Inc.

HgCapital's recent IPOs include Paddy Power, Luminar, Dechra Pharmaceuticals and
Patientline.

Details of these investments can be found on HgCapital's website:
www.hgcapital.net

HgCapital services over 200 institutional clients and manages HgCapital Trust
plc, an investment trust listed on the London Stock Exchange that participates
in all of HgCapital's investments.  HgCapital has funds under management of €1.3
billion.

HgCapital is the trading name of Hg Investment Managers Limited and Hg Pooled
Management Limited. Registered office: Third Floor, Minerva House, 3-5 Montague
Close, London SE1 9BB.  Authorised and regulated by the Financial Services
Authority.


About Xyratex

Xyratex is a leading provider of enterprise data storage subsystems and network
technology. It designs and manufactures enabling technology that provides OEM
and disk drive manufacturer customers with data storage products to support
high-performance storage and data communication networks. It has over 20 years
of experience in research and development relating to disk drives, storage
systems and high-speed communication protocols.

Founded in 1994 and with headquarters in the UK, the company employs over 800
people with around a third working in R&D. Xyratex has an established global
base with R&D and operational facilities in Europe, the United States and South
East Asia.

Visit Xyratex online at www.xyratex.com.'


24 June 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange