MAJORITY OF ALL HOME PCS NOW BEING SOLD HAVE CD-ROM DRIVES, SAYS CII

INCREASE IN PERIPHERALS CONSUMPTION UNDERSCORES INCREASED SOPHISTICATION OF
HOME PC USERS

LA JOLLA, Calif., Sept. 25, 1995 - New research from Computer Intelligence
InfoCorp (CII) reveals that 53 percent of all home PCs purchased in 1994
have CD-ROM drives.

CII's Consumer Technology Index (CTI), the largest, most comprehensive
survey of personal computer usage in the U.S., found the PC peripherals
market expanding to reach broader audiences and a greater number of
households. In addition to examining CD-ROM sales, the CTI study tracked
overall home penetration levels for modems, printers, monitors and
scanners.

"With only one-quarter of the installed base of home PCs currently
outfitted with a CD-ROM drive, there is tremendous potential for upgrades
in this market," said Matt Sargent, CII's Industry Analyst for PC
Hardware. "A majority of the PCs selling to the home market today have
CD-ROM drives as standard equipment, and this can only help CD-ROM vendors
increase their sales."

While CD-ROM-equipped machines account for the majority of new home PC
sales, the CTI study found that only 27 percent of existing home PCs have
CD-ROM capability. As for users who presently do not have CD-ROMs, 29
percent plan to add CD-ROM drives to their system in 1995.

In addition to calculating the number of CD-ROM drive purchases, the CTI
study examined purchase sources. Mail order channels - consisting of
direct PC vendors and mail order reseller houses - accounted for the
largest percentage of CD-ROM sales, with consumer electronics stores
making up the bulk of retail sales.

 SOURCE OF CD-ROM DRIVE PURCHASES FOR THE HOME PC MARKET IN 1994

 Channel                       Percentage of Sales

 Mail order                    23%
 Consumer electronics stores   21%
 Computer dealers              19%
 Mass merchant                 12%
 Computer superstore            7%
 Office supply store

 Source: Consumer Technology Index 1995

According to the CTI study, 42 percent of home PCs purchased in 1994
included modems, while overall modem penetration in the home market stands
at 31 percent. CII expects the growth in popularity of consumer online
services and the Internet to spur 27 percent of users who do not have a
modem currently to purchase a modem by the end of 1995.

Not surprisingly, printers continue to be the number one peripheral
purchased along with PCs. The CTI study found that printers accompanied 83
percent of all home PCs sold in 1994. More than half (54 percent) of all
printer sales go through the retail channel, indicating that home PC
owners consider printers a typical consumer purchase.

As home users become more technology savvy, the trend in monitors is toward
larger screens. While the CTI study showed that the majority (58 percent)
of monitors now in use in the home have screens 14" or smaller, this
category accounts for only 44 percent of current sales. CII expects 15"
monitors, now 38 percent of sales, to take the lead for 1995. Further
evidence of the trend toward larger screens is the increase in sales of
17" screens, which accounted for barely three percent of sales in 1990 and
comprised seven percent of purchases in 1994.

 SHARE OF MONITORS IN THE HOME PC MARKET BY SIZE

 Screen Size            Total Installed Base        1994 Sales

 14" and smaller        58%                         44%
 15"                    29%                         38%
 17"                     5%                          7%
 Larger than 19"

 Source: Consumer Technology Index 1995

Finally, though scanners may represent cutting edge technology, they are
still a niche purchase for the home market. According to the CTI study,
only 5 percent of home PCs purchased in 1994 included a scanner. As more
software applications for scanners come to market, CII expects to see an
increase in scanner purchases.

CII's annual Consumer Technology Index study is the largest, most
comprehensive survey of personal computer usage in the United States. The
annual 12-page survey polls more than 16,000 individuals throughout the
U.S. on the types and brands of equipment used at home and in the
workplace. The survey also gathers extensive demographic information from
respondents and ascertains their future PC purchase plans.

Computer Intelligence InfoCorp, a Ziff-Davis Publishing Company, is the
leading source of fact-based information for the computer and
communications industries. CII's extensive research capabilities provide a
wide variety of products and services that help computer and
communications companies sell and market more effectively. All of the
company's products and services are based on proprietary information
databases built and maintained by CII specialists. Headquartered in La
Jolla, Computer Intelligence InfoCorp has offices in Boston; Farmington,
Conn.; Mountain View, Calif.; and Europe. Samples of CII's extensive
market data and research results, timely commentary from industry
authorities and previews of upcoming technology events are available on
the company's Home Page on the World Wide Web (http://www.compint.com).
 
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