Exhibit 99.1

Storage Technology Corporation
One StorageTek Drive
Louisville, CO 80028-4130
303.673.5020

NEWS RELEASE

Contact:	Joe Fuentes	Dana Johnson
	Manager, Global Public Relations	Investor Relations
	303.661.2523	303.661.2676
	joe_fuentes@storagetek.com	dana_johnson@storagetek.com

STORAGETEK ANNOUNCES FIRST QUARTER REVENUE AND EPS NUMBERS

LOUISVILLE, Colo. – Monday, April 25, 2005 – StorageTek^® (Storage Technology Corporation, NYSE: STK), today announced first quarter 2005 net income of $23.4 million, or $0.22 diluted earnings per share. These amounts compare to net income of $23.3 million, or $0.21 diluted earnings per share, for the first quarter of 2004. Revenue for the first quarter of 2005 was $499.3 million compared to $515.1 million for the first quarter of 2004.

“While we grew our profits on a year-over-year basis, this was not the quarter that we had expected to deliver,” said Patrick J. Martin, StorageTek chairman, president and chief executive officer. “However, as we enter the second quarter, our backlog and pipeline of business have improved and we anticipate delivering better results for the remainder of 2005.”

Tape automation products continue to show strong growth as evidenced by the 70 percent year-over-year increase in sales. “We are pleased to see that our SL8500 high-end library and the SL500 mid-range library are gaining widespread market acceptance. Customers are coming to truly value our automated tape solutions as the preferred choice for data protection and archiving,” continued Martin.

Financial highlights for the first quarter include a cash and investment balance of $1.15 billion, cash flow from operations of approximately $52 million, and share repurchases of approximately $57 million. “The balance sheet and financial strength of StorageTek continue to remain solid,” said Robert S. Kocol, StorageTek's chief financial officer. “We will continue to focus on operational disciplines in order to drive continuous improvement in our business.”

StorageTek will conduct the first quarter 2005 financial results conference call today at 5 p.m. EDT. Media and analysts may join StorageTek for a live audio Web cast at http://storagetek.shareholder.com/medialist.cfm. Media and analysts who prefer to join via telephone line may dial 1-800-818-5264 at least 5 minutes prior to the start of the conference call. International participants should dial +1-913-981-4910.

A replay of the conference call will be available on the Web and can be accessed through the StorageTek Web site. The replay will also be available via telephone beginning at 8 p.m. EDT today and run through midnight EDT April 30, by dialing 1-888-203-1112. If calling internationally, dial +1-719-457-0820. Both the domestic and international replay call-in numbers require pass code 4255206.

This press release contains certain statements, projections and forecasts regarding StorageTek’s future business plans, financial results, products and performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” and “believes.” There are a number of risks and uncertainties that could cause the company’s actual results to differ materially.

Some of these risks and uncertainties include, but are not limited to, StorageTek’s ability to develop, manufacture and market new products and services successfully; the effect of product mix and distribution channel mix on our gross margins; our ability to execute our Information Lifecycle Management strategy; competitive pricing pressures; rapid technological changes in the markets in which we compete; our ability to attract and retain highly skilled employees; changes in our management; our ability to protect and develop intellectual property rights; our reliance on certain sole source suppliers; our ability to obtain quality parts and components in a timely manner; general economic conditions in the United States and globally; and other risks described in StorageTek’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that are filed with the Securities and Exchange Commission and which are available on the SEC’s website.

About StorageTek

StorageTek is a $2.2 billion global company that enables businesses, through its information lifecycle management strategy, to align the cost of storage with the value of information. The company’s innovative storage solutions manage the complexity and growth of information, lower costs, improve efficiency and protect investments. For more information, see www.storagetek.com, or call 1.800.786.7835.

TRADEMARKS: StorageTek and the StorageTek logo are registered trademarks of Storage Technology Corporation. Other names mentioned may be trademarks of Storage Technology Corporation or other vendors/manufacturers.

STORAGE TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In Thousands, Except Per Share Amounts)

	Quarter Ended
		04/01/05			03/26/04
Revenue
Storage products	$	266,202		$	294,606
Gross profit margin		51	%		49	%
Storage services		233,054			220,466
Gross profit margin		43	%		42	%
Total revenue		499,256			515,072
Cost of revenue		264,680			276,869
Gross profit		234,576			238,203
Gross profit margin		47	%		46	%
Research and development costs		47,371			48,502
Selling, general, and administrative expense		164,645			162,685
Operating profit		22,560			27,016
Interest income		7,176			3,181
Interest expense		(219	)		(377	)
Income before income taxes		29,517			29,820
Provision for income taxes		(6,092	)		(6,471	)
Net income	$	23,425		$	23,349
EARNINGS PER COMMON SHARE
Earnings per share:
Basic	$	0.22		$	0.21
Diluted	$	0.22		$	0.21
Weighted average shares:
Basic		106,070			110,551
Diluted		108,532			113,353
SUPPLEMENTAL FINANCIAL DATA – STORAGE PRODUCTS REVENUE

Tape products	$	211,898	$	223,089
Disk products		32,491		44,218
Network products		12,798		17,014
Other		9,015		10,285
Total storage products	$	266,202	$	294,606

STORAGE TECHNOLOGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands)

	04/01/05			12/31/04
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,000,403	$	853,410
Short-term investments		105,117		281,028
Accounts receivable		432,027		519,273
Inventories		134,369		123,459
Deferred income tax assets		166,840		174,253
Other current assets		4,425		1,062
Total current assets		1,843,181		1,952,485
Long-term investments		45,591		48,408
Property, plant, and equipment		180,720		177,371
Spare parts for maintenance		50,309		49,048
Deferred income tax assets		46,475		46,569
Other assets		142,170		133,960
Total assets	$	2,308,446	$	2,407,841
LIABILITIES
Current liabilities:
Current portion of long-term debt	$	1,318	$	1,551
Accounts payable		105,950		121,019
Accrued liabilities		486,106		533,839
Income taxes payable		231,617		239,253
Other current liabilities		22,715		59,365
Total current liabilities		847,706		955,027
Long-term debt		10,263		11,006
Total liabilities		857,969		966,033
STOCKHOLDERS’ EQUITY

Common stock, $0.10 par value		11,462			11,288
Capital in excess of par value		1,065,479			1,019,101
Retained earnings		623,520			600,095
Accumulated other comprehensive loss		(27,374	)		(38,772	)
Treasury stock		(190,718	)		(134,148	)
Unearned compensation		(31,892	)		(15,756	)
Total stockholders’ equity		1,450,477			1,441,808
Total liabilities and stockholders’ equity	$	2,308,446		$	2,407,841

STORAGE TECHNOLOGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

	Quarter Ended
		04/01/05			03/26/04
OPERATING ACTIVITIES
Cash received from customers	$	576,374		$	569,589
Cash paid to suppliers and employees		(521,580	)		(493,952	)
Interest received		5,859			2,634
Interest paid		(194	)		(307	)
Income taxes paid		(8,609	)		(7,516	)
Net cash provided by operating activities		51,850			70,448
INVESTING ACTIVITIES
Purchases of investments		(27,050	)		(151,700	)
Proceeds from sale of investments		205,460			125,665
Purchases of property, plant, and equipment		(19,704	)		(14,738	)
Proceeds from sale of property, plant, and equipment		46			11
Other assets		(4,207	)		(25,602	)
Net cash provided by (used in) investing activities		154,545			(66,364	)
FINANCING ACTIVITIES
Repurchases of common stock		(56,570	)		(29,190	)
Proceeds from employee stock plans		23,915			27,788
Proceeds from other debt		647			416
Repayments of other debt		(978	)		(491	)
Net cash used in financing activities		(32,986	)		(1,477	)
Effect of exchange rate changes in cash		(26,416	)		(16,265	)
Increase (decrease) in cash and cash equivalents		146,993			(13,658	)
Cash and cash equivalents - beginning of the period		853,410			727,354
Cash and cash equivalents - end of the period	$	1,000,403		$	713,696
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net income	$	23,425		$	23,349
Depreciation and amortization expense		18,400			20,117
Inventory writedowns		4,814			2,862
Translation loss		8,028			8,981
Other non-cash adjustments to income		25,597			29,120
(Increase) decrease in assets:
Accounts receivable		77,118			54,517
Inventories		(12,445	)		7,144
Other current assets		(8,975	)		2,449
Spare parts		(6,589	)		(6,032	)
Deferred income tax assets		195			(384	)
Increase (decrease) in liabilities:
Accounts payable		(14,100	)		(27,191	)
Accrued liabilities		(37,925	)		(11,297	)
Other current liabilities		(17,865	)		(25,326	)
Income taxes payable		(7,828	)		(7,861	)
Net cash provided by operating activities	$	51,850		$	70,448