OCZ Technology Group Updates Investors on Restatement Progress

OCZ Technology Group Updates Investors on Restatement Progress 
SAN JOSE, CA  -- (Marketwired) -- 07/02/13 --  OCZ Technology Group,
Inc. (NASDAQ: OCZ), a leading provider of high-performance
solid-state drives (SSDs) and power management solutions for
computing devices and systems, is updating investors on its
restatement process. 
"We know that our restatement efforts are top of mind for all
investors. This process has taken longer than we expected due to a
number of items. Complexity of the transactions, as well as resource
issues, were the main drivers for the additional time needed. Rafael
Torres, our new CFO, joined us in late March with significant
restatement experience and has filled key financial leadership
positions and improved the technical depth of the finance
organization," stated Ralph Schmitt, CEO of OCZ Technology. "Through
these improvements, we have implemented a more rigorous review
process that has also resulted in the identification of additional
restatement items that have taken some time to review, document and
conclude on. Taking these items into account, we believe that we are
on track to becoming current with our SEC filings before the end of
August." 
As previously disclosed, on December 17, 2012, the Audit Committee of
OCZ Technology Group, Inc. concluded that the Company should restate
its previously-issued consolidated financial statements for fiscal
year 2012 and the first quarter of fiscal 2013. In the course of its
restatement work for these periods, the Company identified two
misclassification items in its previously-issued consolidated
financial statements for fiscal years 2009, 2010 and 2011. These
items include: 1) the recording of certain previously-expensed
manufacturing and freight costs that should have been capitalized in
inventory and recorded in cost of goods sold upon shipment, and 2)
the classification of certain customer incentive program credits as
operating expenses that should have been recorded as an offset to
reported net revenue. The aggregate impact of these items on the
Company's previously-reported net income or loss for these periods is
expected to be de minimis, although gross profit levels will be
reduced from amounts previously-reported. We believe the impact to
periods prior to 2012 will be isolated to t
hese two items, though we
have not yet completed our restatement work.   
The impact of all adjustments made during the restatement process
will be disclosed in more detail in the Company's restated financial
statements, which will be provided as soon as practicable. Until the
restatements are released, in addition to the financial statements
for the periods referenced in the paragraph above, related press
releases and shareholder communications describing the results
reported in these financial statements should no longer be relied
upon.  
About OCZ Technology Group, Inc.  
Founded in 2002, San Jose, CA-based OCZ Technology Group, Inc. (OCZ)
is a global leader in the design, manufacturing, and distribution of
high-performance solid-state storage solutions and premium computer
components. Offering a complete spectrum of solid-state drives
(SSDs), OCZ provides SSDs in a variety of form factors and interfaces
(i.e. PCIe, SAS and SATA) to address a wide range of client and
enterprise applications. Having developed firmware and controller
platforms, to virtualization and endurance extending technologies,
the company delivers vertically integrated solutions enabling
transformational approaches to how digital data is captured, stored,
accessed, analyzed and leveraged by customers. For more information,
please visit: www.ocz.com. 
Forward Looking Statements
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements
involving known and unknown factors that may cause actual results of
OCZ Technology Group, Inc. to be different from those expressed or
implied in the forward-looking statements. In this context, words
such as "will," "would," "expect," "anticipate," "should" or other
similar words and phrases often identify forward-looking statements
made on behalf of OCZ. It is important to note that actual results of
OCZ may differ materially from those described or implied in such
forward-looking statements based on a number of factors and
uncertainties, including, but not limited to, the risk that the
process of preparing and auditing the financial statements or other
subsequent events would require OCZ to make additional adjustments;
the time and effort required to complete the restatement of the
financial reports; the ramifications of OCZ's potential inability to
timely file required reports; including potential delisting of OCZ's
common stock on NASDAQ; the risk of litigation or governmental
investigations or proceedings relating to such matters; market
acceptance of OCZ's products and OCZ's ability to continually develop
enhanced products; adverse changes both in the general macro-economic
environment as well as in the industries OCZ serves, including
computer manufacturing, traditional and online retailers, information
storage, internet search and content providers and computer system
integrators; OCZ's ability to efficiently manage material and
inventory, including integrated circuit chip costs and freight costs;
OCZ's ability to obtain sufficient NAND flash; and OCZ's ability to
generate cash from operations, secure external funding for its
operations and manage its liquidity needs. Other general economic,
business and financing conditions and factors are described in more
detail in "Item 1A -- Risk Factors" in Part I in OCZ's Annual Report
on Form 10-K filed with the SEC on May 14, 2012, and statements made
in other subsequent filings. The filing is available both at
www.sec.gov as well as via OCZ's website at www.ocz.com. OCZ does not
undertake to update its forward-looking statements.  
All trademarks or brand names referred to herein are the property of
their respective owners. 
Contact: 
OCZ Press 
Scott Harlin
Director of Marketing Communications
(408) 440-3484
sharlin@ocztechnology.com 
OCZ Investor Relations 
Bonnie Mott
Senior Manager of Investor Relations
(408) 440-3428
bmott@ocztechnology.com