DIGITAL SETS THE PACE FOR HOME COMPUTING WITH NEW STARION PCS AND
HIGH-POWERED INTEL 150 AND 166MHz PROCESSORS

Introduces Top-of-the-Line Starion 950 and 960 PCs for Family and
Home-Office Consumers...

MAYNARD, Mass., January 4, 1996 -- Digital Equipment Corporation today
became one of the first computer makers to ship retail PCs based on
Intel's high-end processors for the home market, the Pentium 150 and 166
processors. Digital's new Starion 950 and 960 PCs combine the lightning
speed of Intel Pentium 150MHz or 166MHz processors, the market's premier
home-theater-quality sound, and top-of-the-line features aimed to please
the cutting-edge consumer.

"The Starion 950 and 960 PCs shatter the speed limit for home computing,"
said Howard Elias, vice president, Desktop and Mobile Product Lines for
Digital's Personal Computer Business Unit. "Digital has paired
state-of-the-art Pentium processors with Starion's state-of-the-art sound
for the consumer market. These new models are feature-packed multimedia
PCs for the home computing enthusiast or the home office entrepreneur --
anyone looking for a PC built to go the distance."

"Digital has consistently been out in front with features that matter to
consumers," said Rod Keller, the Personal Computer Business Unit's vice
president of consumer products for the Americas. "Our new Starion 950 and
960 models have plenty of muscle to run horsepower-hungry multimedia
titles and games."

Starion 950 and 960 PCs: Multimedia Powerhouses

Based on high-powered Pentium 150MHz or 166MHz processors, the new Starion
950 and 960 PCs pump up the speed and excitement of popular multimedia CDs
and games. They complete the multimedia experience with the Starion PC's
unmatched sound system, treating consumers to the same clear highs and
vibrant lows they experience in music and in movies. The sound system
features JBL satellite speakers, 16-bit audio with wavetable, and 3D
surround sound.

Both the Starion 950 and 960 models offer top-speed access to the Internet
and popular online services with a 28.8 Kbps data/fax modem. For managing
home office or family communications needs, these full-featured models
include a built-in answering machine with professional-quality voicemail
and full-duplex, hands-free speakerphone.

Like all current Starion PCs, these newest models sport a quad-speed CD-ROM
drive, pre-loaded Windows 95, and a suite of best-selling home software,
including popular Microsoft titles.

Both the 150MHz-based Starion 950 and the 166MHz-based Starion 960 PCs come
equipped with 16MB of memory, a large 1.6GB hard drive, and 64-bit
graphics. Expected street prices are $2,999 and $3,199, respectively. They
offer a choice of 15-inch (13.8 inches viewable) or 17-inch (15.8 inches
viewable) SVGA flat-screen, anti-glare monitors. Expected street prices
for the monitors are $399 and $749, respectively.

For the location of the nearest Starion retailer, call 1-800-216-8115, or
visit Digital on the World Wide Web at http://www.pc.digital.com

World-Class Service and Support

Digital's Starion products are backed by a three-year limited warranty and
a worldwide service and support network. The warranty includes one year of
on-site service. (Note 1)

Digital has more than 22,000 service professionals worldwide, including 800
Microsoft Certified professionals, and 5,000 support professionals trained
on Microsoft products, including Windows, Windows 95, Windows NT, and a
variety of other software products.

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.

Note 1: Digital monitors and Digital options are warranted separately. The
first-year on-site service is available in most areas. Some components in
the first year of on-site service are covered under a customer-replaceable
unit program.
 
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