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Item 4C: Organization StructureXyratex Ltd is the parent company of the Xyratex Group. Xyratex Ltd directly wholly-owns all thesignificant subsidiaries in the group with the exception of Xyratex International Inc, which it ownsindirectly. In November 2005 we reorganized our group structure with Xyratex Technology Limited,Xyratex Holdings Inc and Xyratex (Malaysia) Sdn Bhd all becoming direct subsidiaries of Xyratex Ltdhaving previously been held indirectly through Xyratex Group Limited. The purpose of thereorganization was to align the legal group structure by geographic location. Immediately after thereorganization was completed we migrated the tax residence of Xyratex Ltd out of the UnitedKingdom. The combined effect of the group reorganization and the shift in tax residency ofXyratex Ltd is that income earned outside the United Kingdom can be distributed to Xyratex Ltdwithout being subject to U.K. taxation.The following table lists our significant subsidiaries:CompanyCountry of IncorporationXyratex Technology Limited .......... United KingdomXyratex Holdings Inc ............... United StatesXyratex International Inc. ........... United StatesXyratex (Malaysia) Sdn Bhd ......... MalaysiaItem 4D: PropertiesOur corporate offices and the center for our European research and development and productionoperations are located in Havant, United Kingdom, where we lease 89,000 square feet of office spaceand 17,000 square feet of manufacturing space.Our U.S. research and development operations occupy leased facilities in Lake Mary, Florida,Ithaca, New York and Chicago, Illinois. We maintain production operations in Sacramento, San Joseand Scotts Valley, California. In Lake Mary we lease 14,000 square feet of office space, in Ithaca welease 9,000 square feet of office space and in Chicago we lease 12,000 square feet of office space. InSan Jose, we lease 35,000 square feet of office space, in Scotts Valley we lease 50,000 square feet ofmanufacturing space and in Sacramento we lease 113,000 square feet of manufacturing space.In Asia, our production and research and development operations are located in a 118,000 squarefoot facility in Seremban, Malaysia, which we own. Approximately 25,000 square feet of this space isoffice space and the remaining 93,000 square feet is manufacturing space. We also lease 4,000 squarefeet of office space in Singapore, 1,500 square feet of office space in Shanghai, China, 4,000 square feetof office space in Wuxi, China, and 4,000 square feet of office space in Patumthani, Thailand, all forsales and customer support.ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS (MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS)You should read the following commentary together with the ‘‘Selected Historical ConsolidatedFinancial Data’’ set forth in Part I, Item 3A and our consolidated financial statements and the related notescontained elsewhere in this Annual Report. This discussion contains forward-looking statements that involverisks and uncertainties. Our actual results may differ materially from those anticipated in these forwardlookingstatements as a result of many factors, including but not limited to those set forth in ‘‘Part I,Item 3D—Risk Factors’’ and elsewhere in this Annual Report.38