DIGITAL SUSTAINS POSITION AMONG INDUSTRY PRICE/PERFORMANCE LEADERS WITH
PRICE CUTS AND NEW MODELS IN COMMERCIAL DESKTOP LINES

Continues to Help Customers Transition to Pentium Technology with New
Levels of Price/Performance

MAYNARD, Mass. -- Aug. 23, 1995 -- Digital Equipment Corporation moved
quickly to sustain its position among PC industry leaders yesterday by
notifying its resellers in the United States that it would make
competitive price reductions on Pentium-based models in its commercial
desktop lines. The price reductions range from 6 to 17 percent and are
applicable to selected models in the company's Venturis and Celebris GL
product families. This is on top of price cuts of up to 12 percent the
company notified resellers of three weeks ago for selected models in
Digital's Venturis line. As the company continued its support of corporate
customers transitioning to Pentium technology, Digital also announced its
newest desktop PC for general business users -- the Venturis 5133 -- and
said it has begun volume shipments of its recently introduced Venturis
5120 models. This is in addition to the 19 new Celebris GL Pentium models
announced earlier this week.

"This week's price moves mark the second step in a pricing action we began
a few weeks ago when we took dramatic price reductions on our entry-level
Pentium commercial desktops,' said Skip Gladfelter, vice president of
marketing, Americas, for Digital's Personal Computer Business Unit.
"Because of this aggressive price position, competition has had farther to
go recently in maintaining competitive price points. Today's announcements
build on our widely recognized leadership in transitioning customers from
486 to Pentium processing."

Pentium Power at 486-Based Prices

The company reduced prices on most Pentium models in its Venturis desktop
line, designed for general business users, and on a few 16MB models in the
new Celebris GL family of high-performance desktops announced earlier this
week. Following is an overall summary of Digital's price actions taken in
the U.S. since late July:

VENTURIS SLIMLINE MODELS

Model Processor      Memory/Hard Drives    Old MSRP      New MSRP

575   Pentium 75MHz  8MB/420MB/845MB/1.2GB $1,899-$2,249 $1,679-$2,029
590   Pentium 90MHz  8MB/420MB/845MB/1.2GB $2,249-$2,599 $1,899-$2,249
5100  Pentium 100MHz 8MB/420MB/845MB/1.2GB $2,499-$2,849 $1,999-$2,349
5120  Pentium 120MHz 8MB/420MB/845MB/1.2GB $2,659-$3,009 $2,199-$2,549

VENTURIS FULL PROFILE MODELS

Model Processor      Memory/Hard Drives    Old MSRP      New MSRP

575   Pentium 75MHz  8MB/420MB/845MB/1.2GB $1,949-$2,299 $1,729-$2,079
590   Pentium 90MHz  8MB/420MB/845MB/1.2GB $2,299-$2,649 $1,949-$2,299
5100  Pentium 100MHz 8MB/420MB/845MB/1.2GB $2,549-$2,899 $2,049-$2,399
5120  Pentium 100MHz 8MB/420MB/845MB/1.2GB $2,709-$3,059 $2,249-$2,599

CELEBRIS GL LOW PROFILE MODELS

Model Processor      Memory/Hard Drive     Old MSRP      New MSRP

5100  Pentium 100MHz 16MB/845MB            $3,449        $3,249
5120  Pentium 120MHz 16MB/845MB/1.2GB      $3,799-$3,899 $3,499-$3,599
5133  Pentium 133MHz 16MB/845MB/1.2GB      $4,099-$4,199 $3,749-$3,849

CELEBRIS GL SHORT TOWER MODELS

Model Processor      Memory/Hard Drives    Old MSRP      New MSRP

5100  Pentium 100MHz 16MB/845MB            $3,549        $3,349
5120  Pentium 120MHz 16MB/845MB/1.2GB      $3,899-$3,999 $3,599-$3,699
5133  Pentium 133MHz 16MB/845MB/1.2GB      $4,199-$4,299 $3,849-$3,949

Digital Broadens Range of Pentium Solutions for General Business Users

Digital's Venturis line, designed for today's personal computing business
needs, offers ease of installation and use for general business
environments. The company noted that it has begun volume shipments of the
Venturis 5120, announced earlier this summer, and introduced new models to
the line based on Intel's fastest chip to date -- the Pentium 133MHz
processor. The new Venturis 5133 brings a higher level of power and
performance to the Venturis family, utilizing high-performance, 64-bit
accelerated PCI local bus graphics and a dual-channel Enhanced-IDE
interface. Graphics-intensive applications benefit from the system's 1MB
of standard graphics memory, upgradeable to 2MB. The Venturis 5120 is
priced from U.S. $2,199,-$2,599 and the new Venturis 5133 models range
from U.S. $2,449 to $2,849.

Digital's Entire Notebook and Desktop Product Lines to Sport Windows 95
Logo

Digital said that all currently shipping notebooks and commercial and
retail desktops, which number more than 50 models, have been fully tested
by Microsoft and are certified to wear the Windows 95 logo. According to
Microsoft no other company has as many models currently certified to run
with Windows 95.

Earlier this week, Digital also cut prices on its industry- leading HiNote
and HiNote Ultra notebook products, with reductions ranging from 14 to 30
percent. Today's pricing actions do not impact the company's new Starion
retail desktop products, announced earlier this week, that optimize
Windows 95 for the general consumer market and include the industry's
first PC models with "home-theater-quality" sound.

Digital Equipment Corporation is the world's leader in open client/server
solutions from personal computers to integrated worldwide information
systems. Digital's Intel and Alpha platforms, storage, networking,
software and services, together with industry-focused solutions from
business partners, help organizations compete and win in today's global
marketplace.
 
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