DIGITAL INTRODUCES PENTIUM 150MHz and 166MHz PROCESSORS ACROSS DESKTOP,
RETAIL AND PC SERVER LINES

MAYNARD, Mass., January 4, 1996 -- Digital Equipment Corporation today
announced its plans to incorporate the new 150MHz and 166MHz Intel Pentium
processors across its desktop, retail and server PC families. Digital will
include the new processors in several models within its Celebris XL,
Celebris GL and Venturis commercial desktop families and is introducing
two new powerful home computers in its Starion retail line. The company
also announced that it will offer 166MHz Pentium-powered models of its
award-winning Prioris server line in single- and dual-processor
configurations.

Pricing and volume shipment availability for the commercial desktop and
server systems will be announced later this month. Digital's new Starion
950 and Starion 960 retail PCs are shipping now, at expected street prices
of $2,999 and $3,199, respectively. Intel announced availability of the
150MHz and 166MHz Pentium processors earlier today.

Digital's aggressive incorporation of the new Pentium 150MHz and 166MHz
processors is part of its strategy to offer a wide range of competitively
priced, highly reliable, feature-rich PCs with the latest technology
advances. Working with Intel, Microsoft and other technology partners
enhances Digital's engineering excellence, overall design and
best-of-breed componentry of its PCs. Digital has matched its own
motherboard designs with Intel's microprocessor engineering to allow easy,
streamlined integration of the new processors into its full PC family.

"Digital PC recognizes the importance of providing our customers the
state-of-the-art in power, design and reliability, and continues to
populate our PCs with the latest processors on the Intel Pentium power
curve," said Howard Elias, vice president, Desktop and Mobile Product
Lines for Digital's Personal Computer Business Unit. Digital offers one of
the broadest lines of Pentium PCs available -- designed for excellence and
long-term value."

Celebris XL Personal Workstations: "A Powerful 'Technical Workstation' in
PC Clothing"

Digital is adding the Celebris XL 5150 and Celebris XL 5166 models and a
dual-processor Celebris XL 5166 system to the industry's fastest personal
workstation family, which includes models based on Intel Pentium, Pentium
Pro and Digital Alpha processors, as well as certain components and
options that are interchangeable between the three platforms.

The Digital personal workstation's processor-independent architecture
enables fast, smooth and easy migration to the latest Intel Pentium,
Pentium Pro and Digital Alpha microprocessors, for long-term investment
protection as customer's business needs change. Digital is offering its
industry-leading PowerGrade program for 166MHz processor upgrades -- users
simply plug in the respective daughter cards.

Celebris XL models feature 16MB RAM, 256/512K cache, 1GB SCSI hard drive,
Matrox Millennium graphics card, 4X CD-ROM, and Digital's ClientWORKS
network and asset management software.

In addition, AccelGraphics AG300 Graphics Adapters are now available for
use on Pentium, Pentium Pro, and Alpha systems. Combined with Windows NT,
Digital's personal workstation family provides users of technical and
compute-intensive applications a combination of workstation-class
performance and shrink-wrapped applications, with the look, feel and
pricing of a PC.

Celebris GL PCs: Designed for Performance and Demanding Applications

Digital's award-winning Celebris GL PCs, designed from the start to be
performance desktop systems, offer advanced business users a potent
combination of performance, flexibility and ease-of-use, winning PC
Magazine's December 1995 editor's choice award.

The new Celebris GL 5150 and Celebris GL 5166 models will be available in
short-tower configurations. Celebris GL systems are ideal for
fast-response, demanding business and analytical applications, and feature
integrated, best-of-breed componentry, including: Pentium processors; EDO
memory; pipeline burst cache; Intel Triton FX chipset; PCI bus master
Enhanced-IDE and integrated, extended performance 64-bit graphics.
High-quality 16-bit stereo sound, quad-speed CD-ROM for fast response, and
Digitals ClientWORKS software are included on preconfigured models.

Venturis PCs: Feature-Rich and Reliable for Enterprise Computing

Digital brings the latest in Pentium power to its Venturis value line with
the addition of the new Venturis 5150 and Venturis 5166 systems, which
will be available in both slimline and full-profile models. Venturis
systems are designed to optimize productivity for enterprise computing
users while offering exceptional price/performance. Venturis systems are
easy to use, service, and manage and also support Digital's ClientWORKS
software.

Starion 950 and 960 PCs: Setting the Pace For Home Computing

Digital is one of the first computer makers to ship retail PCs based on
Intel's high-end processors for home and home-office computing. 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.

With their high-powered Pentium processors, the new Starion 950 and 960
have the muscle to run horsepower-hungry 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.

Starion 950 and 960 systems 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 come
equipped with 16MB of memory, a large 1.6GB hard drive, and 64-bit
graphics. They offer a choice of 15-inch (13.8-inch viewable) or 17-inch
(15.8-inch 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

Prioris PC Servers: Scalability and Expandability for Maximum Investment
Protection

The Pentium 166MHz-powered server will be the latest addition to Digital's
award-winning Prioris line of highly scalable, high-performance symmetric
multiprocessing application servers for medium to large workgroups. These
PC servers are ideal for LAN consolidation and in environments where the
highest degree of confidence in network integrity is mandatory. In single-
and dual-processor configurations, the Prioris HX family's balanced system
design incorporates performance and expandability features, such as 512KB
secondary level write-back cache, PCI Fast-Wide SCSI-2 controllers and
devices, and Digital's PCI-to-PCI bridge technology which provides a total
of six bus-master PCI slots and six bus-master EISA slots. As a result,
the Prioris family matches high-speed processor technology with an
enhanced throughput architecture to achieve maximum server performance.

As with all current Prioris PC servers, Digital will include with the new
systems -- at no extra cost -- Digital's ServerWORKS Manager, a software
package that extends the capabilities of traditional server management to
also provide critical network management functionality, and ServerWORKS
Quick Launch, a CD-ROM suite of utilities that automates network operating
system installation and the configuration of Digital Prioris PC servers.

Full pricing and availability information will be released later this
month.

World-Class Service and Support

Digital's products are backed by a three-year limited hardware warranty and
a worldwide service and support network. The warranty includes one year of
on-site service for desktop and retail PCs and three years for server
products. (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.
On-site service is available in most areas. For desktop and retail
products, some components in the first year of on-site service are covered
under a customer-replaceable unit program.
 
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