Investor Notice: Investigation on Behalf of Investors in STEC, Inc. Announced by Former Attorney General of Louisiana and KSF Law Firm

On November 3, 2009, shares of STEC lost over thirty percent of their value after the company lowered its 2009 guidance below Wall Street's outlook, citing inventory surpluses at one of its largest customers, EMC (NYSE: EMC). STEC, which designs, develops, manufactures, and markets solid-state computer memory drive products, including the ZeusIOPS solid state drives, warned that EMC is carrying an inventory glut, suggesting that demand for STEC's solid state drives could be weaker than expected. While analysts expected some inventory build by the first quarter of 2010, the glut of inventory in the third quarter of 2009 came as a complete surprise to analysts and investors.

KSF is investigating whether the immediate decline in the price of STEC shares has been driven by the fact that as recently as August 3, 2009, STEC’s corporate insiders, including Manouch Moshayedi, the Company’s Chief Executive Officer and Chairman of the Board, and his son, Mark Moshayedi, its President, Chief Operating Officer, Chief Technical Officer and Secretary, sold off as many as 10.35 million shares of their privately held STEC shares in a registered Secondary Offering, to realize gross proceeds of approximately $320,850,000.00, prior to any disclosure regarding the severe inventory build up at EMC. According to media reports, EMC is responsible for as much as 90% of the Company’s Zeus solid state hard drive sales.

If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may e-mail or call KSF, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KSF direct, toll free 1-866-467-1400, ext. 100, or by email at lewis.kahn@ksfcounsel.com. KSF focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KSF, please visit www.ksfcounsel.com.

Kahn Swick & Foti, LLC
Lewis Kahn, 866-467-1400,ext.100
Lewis.kahn@ksfcounsel.com