AST REPORTS RECORD YEAR-END REVENUES OF $l.4 BILLION; SHIPS RECORD 804,000
PCs

(Note - although financial reports are normally not distributed via our
news services, this release was included since it includes interesting
information on the recent acquisition of the Tandy PC manufacturing
operations--Editor)

IRVINE, Calif., August 5, 1993 -- Representing quarter over quarter growth
of 54 percent and annual growth of 50 percent for fiscal year 1993, AST
Research Inc. today announced record revenues of $409.2 million for the
fourth quarter ended July 3, 1993 and record fiscal year end revenues of
$1.412 billion. This compares to revenues of $266.3 million for the fourth
quarter of the prior year and $944.1 million for fiscal year 1992.

The acquisition of Tandy Corp.'s PC manufacturing operations resulted in a
fourth quarter $125 million pre-tax restructuring charge to realign the
company's existing operations and integrate the acquired businesses. The
net loss for the fourth quarter of fiscal year 1993 was $87.0 million,
compared to net income of $18.6 million for the prior year period. The net
loss per share was $2.76 for the fourth quarter of fiscal year 1993,
compared to prior year fourth quarter earnings per share of 59 cents.
Without the fourth quarter restructuring charge, pre-tax income would have
been $11 .3 million.

The fourth quarter restructuring charge also created a net loss for fiscal
year 1993 of $53.7 million, compared to net income of $68.5 million for
fiscal year 1992. The net loss per share was $1.72 for fiscal year 1993,
compared to earnings per share of $2.16 for fiscal year 1992. Without the
fourth quarter restructuring charge, pre-tax income would have been $59.8
million.

"Fiscal year 1993 was a period of significant accomplishment for AST,
demonstrated by strong revenue growth and high unit volume increases,"
said Safi Qureshey, AST president and chief executive officer. "With the
acquisition of Tandy's PC manufacturing operations and expansion of our
senior management team, AST is executing a high-volume/low-cost
manufacturing model that offers the industry's broadest range of products,
encompassing personal digital assistants to high-end superservers. We
believe the acquisition, an expanded senior management team and our
intense focus on customer satisfaction will continue to result in
increased worldwide market share."

Record Unit Shipments

The company also announced that it shipped a record 804,000 units
worldwide, representing a 69 percent volume increase for the year,
including a 73 percent increase in desktops and a 52 percent growth in
notebooks. Shipments of Intel-486-based PCs represented 58 percent of the
total year's volume.

AST shipped a record 241,000 PCs during the fourth quarter of fiscal year
1993, a 76 percent increase over the comparable prior year quarter.

Increased Worldwide Sales

Revenues for fiscal year 1993 increased in all geographic regions, with
particular strength recorded in the North American market place. Revenues
of $829.7 million for North America rose 56 percent over the prior year,
while international sales increased 42 percent to $582.5 million. Total
revenues for fiscal year 1993 rose 50 percent over fiscal year 1992.

"Following intense price competition over the past 12 months, our strong
revenue growth is testament to the viability of our business model in
achieving long-term domestic and international growth regardless of
prevailing market conditions," said Qureshey.

At the end of the quarter, AST realigned its sales organization into four
major geographical groups: The Americas, which includes the U.S., Canada
and Latin America; Europe; Asia/Pacific; and Rest of World.

Channel Expansion Activity. Product Introductions

AST further expanded its distribution channels during fiscal year 1993, in
addition to introducing new products across all product families. As the
only major personal computer manufacturer remaining loyal to the reseller
channel, AST has increased the number of its domestic authorized resellers
to more than 2,400.

AST fiscal year 1993 product development efforts resulted in the
introduction of numerous new products, including the Premmia line of
high-performance EISA systems, the energy-efficient Bravo LP, the
Manhattan SMP symmetric multiprocessor, and the upgradeable PowerExec line
of notebooks. These introductions resulted in 28 Product awards received
from the PC industry trade press, including the "Product of the Year"
honor by LAN Magazine for the Manhattan SMP.

Tandy/GRiD/Victor Acquisition Recap

At the end of the fourth quarter, AST purchased the PC manufacturing
operations of Tandy Corp., which included the GRiD North American and
GRiD/Victor European sales divisions (except for Tandy/GRiD France). The
purchase price is payable in $15 million cash, with the balance not
expected to exceed $160 million to be paid with a three-year promissory
note. The final price will be determined based upon an audit. The company
also intends to purchase certain assets of Tandy/GRiD France in a
transaction that is expected to close in September.

As part of the acquisition, AST added four manufacturing plants, new
multimedia and pen-based technologies -- including more than 110
computer-related patents--and the GRiD and Victor brand names. Also
included is a three-year sales agreement with Tandy Corp. to supply its
more than 6,500 Radio Shack, Computer City and Incredible Universe retail
operations. The acquisition creates significant purchasing leverage for
AST and doubles the company's current manufacturing capacity. The
acquisition also makes AST the No. 4 U.S. and No. 6 worldwide personal
computer company, according to calendar year 1992 unit volume shipment
data from International Data Corp. for the AST, Tandy, GRiD and Victor
brands.

AST has begun integrating the acquired operations into its business model
with a focus on realigning operations in order to achieve maximum
efficiencies and provide uninterrupted customer satisfaction.

Balance Sheet Information (Impact of Acquisition)

AST's acquisition of the Tandy/GRiD PC operations includes the purchase of
selected inventory, fixed assets, other assets and the assumption of
certain liabilities. However, as final asset and liability valuations have
not yet been completed, a July 3, 1993 AST consolidated balance sheet has
not been provided.

Balance Sheet Information (Pre-Acquisition AST Results)

The company's financial position has remained strong throughout both the
fourth quarter and fiscal year. Total cash and cash equivalents were
$121.6 million at July 3, 1993, as compared to $121.8 million at April 3,
1993, while short-term borrowings totaled $59.2 million and $49.4 million
for the same respective dates.

Accounts receivable totaled $236.0 million at July 3, 1993, which
represented 52 days sales outstanding.

Total inventory was $242.3 million on July 3, 1993, down $10.6 million from
the immediately preceding quarter ended April 3, 1993. The company's
inventory turnover ratios have improved from 4.1 on June 27, 1993 to 4.7
on April 3, 1993 and now are at 5.5 as of July 3, 1993.

"Throughout this period of high unit volume growth and significant product
transitioning, AST has remained committed to effectively managing its
worldwide inventory levels," said Qureshey.

Also during fiscal 1993, the Company has increased its credit line from
$100 million at June 27, 1992 to $175 million at July 3, 1993 in order to
provide additional financing flexibility.

Company Background

AST Research Inc., ranked No. 367 on the 1992 Fortune 500 list of America's
largest industrial companies, develops personal computer products with
technologies ranging from hand-held portable computers to superservers.

AST's award-winning product lines include desktop, file server, notebook
and pen-enabled computers, marketed under the Advantage!, Bravo, Premmia,
Manhattan SMP, PowerExec, GRiD and Victor product names.

The company is represented in 100 countries and operates 41 international
subsidiaries and sales offices. AST's corporate headquarters is located at
16215 Alton Parkway, P.O. Box 57005, IRVINE, Calif. 92619-7005. Telephone
(714) 727-4141, (800) 876-4278. Fax (714) 727-9355.

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