Digital, MCI AND Microsoft ALLY TO OFFER INTEGRATED BUSINESS SOLUTIONS

Companies Expand Relationships to Deliver Intranet, Messaging and Groupware
Solutions From MCI

BELLEVUE, Wash. -- April 9, 1996 -- Digital Equipment Corp., MCI
Communications Corp. and Microsoft Corp. today announced they are
delivering integrated intranet, electronic mail and messaging, and
groupware business communications services. Digital Chairman Bob Palmer,
MCI Chairman Bert Roberts, and Microsoft Chairman Bill Gates stated that
this alliance builds on existing agreements and leverages MCI's
communications expertise and integration capabilities, Digital's
technology and support services, and Microsoft software products and
technology.

Incorporating the combined expertise of the three companies, MCI will
package and deliver local and wide area end-to-end managed network
services. Initially targeting the U.S. business market, the solutions will
be marketed by MCI under its recently announced Enterprise Network
Solutions initiative and supported by the company's networking, Internet
and communications technologies and the consulting and implementation
expertise of its systems integrations subsidiary SHL Systemhouse. The
underlying components of the service's first offerings will include
Digital's client-server computing and support strengths and components of
the Microsoft BackOffice(tm) family of integrated server software --
Microsoft Exchange Server, Internet Information Server and the Windows
NT(tm) Server network operating system.

"Large corporate customers and small businesses alike will benefit from the
leading-edge turnkey communications solutions that enable them to better
serve their customers through gains in efficiency and enhanced
communications capabilities," Roberts said. "MCI will leverage the world's
leading hardware, software and network services to deliver the next
generation of enhanced intranet and messaging applications for its
business customers."

Electronic Mail, Messaging and Groupware

Working together, the three companies intend to develop a fully integrated
suite of managed electronic mail and messaging solutions, which will be
marketed and licensed by MCI. These solutions combine MCI's robust
messaging network; Digital's Alpha server systems; and the Microsoft
Exchange server software, the first messaging platform with integrated
groupware and Internet connectivity. The suite will provide customers with
a "single source" managed environment for enterprise electronic mail and
groupware. The service also provides systems management, operations,
administration and help-desk services to provide customers a turnkey
managed electronic mail environment.

Because of the dramatic increase in Internet use, electronic mail and
enhanced messaging services have become critical to business productivity.
As a result, the business is expected to grow to $62 billion by the year
2000.

Following are benefits of this powerful combination of products and
technology:

    o   Installation and management.  Seamless delivery, installation
        and management of hardware and communications services -- from
        a single point of contact and with one high standard of
        network performance and reliability.  This will allow
        businesses to achieve enterprisewide messaging and
        interoperability.

    o   Messaging services.  A comprehensive package of messaging
        services ranging from basic electronic mail services, such as
        Internet electronic mail, to premium electronic mail and
        messaging services that integrate directory functionality,
        message storage and gateway services with reliable, secure
        delivery.

    o   Network and applications management.  Around-the-clock network
        and applications management, which takes advantage of the
        global network management capabilities of MCI and the
        client-server telecommunications management information
        platform (TeMIP) management software from Digital to ensure
        reliable message delivery.

    o   Systems integration.  Systems integration and services
        expertise will be delivered by MCI's SHL Systemhouse with
        support from Digital.

    o   Groupware services.  A comprehensive package of groupware
        services ranging from simple bulletin boards and discussion
        databases to more sophisticated sales-tracking applications
        will be developed on Microsoft Exchange Server public folders.
        Public folders are replicated databases that can be used to
        distribute and share information both inside and outside an
        organization.

MCI has also announced it will use Microsoft Exchange Server for its
internal messaging platform. MCI will integrate Microsoft Exchange Server
with the MCI Mail infrastructure to provide enhanced messaging and
groupware capabilities to its employees and customers.

"Microsoft Exchange was created to meet the messaging, groupware and
Internet electronic mail requirements of companies today and in the
future," Gates said. "Providing a reliable and high-performance solution
to today's distributed workplace, Microsoft Exchange enables work teams
spread across an enterprise to share information and collaborate as if
they were across the hall. The combined services of Microsoft Exchange
Server and the communications, network management and computing
capabilities of MCI and Digital offer customers a complete infrastructure
for deploying mission-critical business solutions."

Intranet Networking Services

The three companies will work together to develop solutions that will
enable MCI to help businesses increase workplace collaboration and
productivity by offering a package of managed intranet solutions. Included
in the initial offerings will be MCI WebSite Services and MCI Enterprise
Connect. Intranets, private web-based Internet networks accessible only
within an enterprise, are used to connect employees and business partners
to critical corporate information. Intranets are also used for file
sharing, document transfers and establishing interactive bulletin boards
within an enterprise.

"This alliance combines all of the technologies and services required for
businesses to gain the enormous productivity benefits of a corporate
intranet," Palmer said. "Digital, MCI and Microsoft will bring to the
intranet market the same innovations they have already delivered to the
Internet."

Industry analysts estimate the current $400 million market for intranet
services, software and hardware will reach $8 billion by 1998. It is also
projected that by the end of the decade, 90 percent of all Web servers and
software sold will be for intranet applications.

The end-to-end managed network solution combines the world's leading
Internet technologies to provide the following products and services:

    o   MCI WebSite Services.  Provides Web site content creation,
        hosting, access and Internet security and management.

    o   MCI Enterprise Connect.  A component of MCI's new Enterprise
        Networking Solution initiative, MCI Enterprise Connect offers
        a range of intranet and Internet connectivity options over
        MCI's Internet backbone, including dedicated, frame relay,
        SMDS, ISDN and remote dial-up access.

    o   Search engine and interactive tools.  A suite of technologies
        from Digital that provide Internet search and indexing
        capabilities, workgroup collaboration software for online
        audio, and document conferencing with remote access and
        security.

    o   Web site and browsing software.  MCI will package leading
        Internet software with its intranet solution, including the
        following:

        -  Microsoft Internet Information Server.  These new services
           will be built upon Internet Information Server (IIS), the
           only Web server integrated into Windows NT Server.  IIS is
           an easy-to-use yet powerful platform for Web applications.

        -  Customized versions of Microsoft Internet Explorer.  MCI
           will offer privately branded versions of Microsoft Internet
           Explorer to businesses both for their own internal use and
           to provide to their customers.  Microsoft Internet Explorer
           is the first cross-platform Internet client to integrate
           ActiveX(tm) technologies, which enables businesses to
           create, view and share highly interactive applications and
           content.

MCI will adopt Windows NT Server and Microsoft Internet Information Server
for its Internet and Intranet Web Hosting Services.

Digital Equipment Corporation is the world's leader in open client/server
solutions from personal computing 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.

MCI (NASDAQ "MCIC") is one of the world's largest and fastest-growing
diversified communications companies. With annual revenue of more than $15
billion, MCI offers consumers and businesses a broad portfolio of services
including long distance, wireless, local access, paging, Internet software
and access, information services, outsourcing, business software, advanced
global telecommunications services, and music distribution and
merchandising. An MCI company, SHL is a leader in client-server computing
and offers a wide range of consulting and systems integration services as
well as customized software solutions.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

For more information, press only:

For Digital:    Tom Madden, (508) 264-6675

For MCI:        Jim Monroe, MCI, (800) 644-NEWS

For Microsoft:  Megan McKenzie, Waggener Edstrom, (503) 245-0905
                Helene Love, Waggener Edstrom, (206) 637-9097

For product information, customers may call: (888) 200-7002
 
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