DIGITAL MOVES TO LEAD HIGH-SPEED PCI NETWORK ADAPTER MARKET

Offers top price/performance for customers seeking easy migration...

MAYNARD, Mass. -- February 27, 1995 -- Digital Equipment Corporation today
moved to take the lead in the emerging market for high-speed PCI
(Peripheral Component Interconnect) network adapters by introducing an
aggressively priced scalable Fast Ethernet PCI adapter. Operating at
either 10 or 100 Mb/s, the Fast EtherWORKS PCI 10/100 adapter provides a
simple, cost-effective migration path from the 10 Mb/s networks most
customers have today to faster 100 Mb/s networks. Also, the Company
solidified its lead in the 10 Mb/s portion of the PCI market by reducing
prices up to 28% on its current offerings and releasing compelling test
results.

"Digital intends to be the market share leader in PCI network adapters,"
said Bill Maro, vice president of product marketing and engineering for
Digital's Network Product Business. "We offer PCI adapters with excellent
price/performance across a number of technologies, helping customers
leverage their existing networks to compete more effectively." Digital
currently offers Ethernet, Fast Ethernet, and FDDI adapters.

"Digital is set to be a major player in the PCI adapter market," said
Michael Howard, president of Infonetics Research, a network industry
research and consulting firm. "The new PCI Fast Ethernet adapter is very
fast and competitively priced."

Fast EtherWORKS PCI 10/100 Adapter

The Fast EtherWORKS PCI 10/100 adapter is designed to offer high data
throughput with low CPU utilization. Key for compute- intensive
applications, this design also provides potential cost savings by allowing
more client connections per server. The adapter operates at 10 or 100
Mb/s, automatically sensing the correct operating speed. It operates at up
to 200 Mb/s in full duplex mode.

The new adapter, like all of Digital's PCI adapters, is supported by major
network operating systems, including NetWare, Windows, and UNIX systems.
The adapter offers "plug-and-play" installation and a lifetime warranty.

The Fast EtherWORKS PCI 10/100 adapter is priced at $249 and will ship in
the second quarter of calendar year 1995.

EtherWORKS Turbo PCI Adapters Lead Market in Price and Performance

Digital has taken the price/performance lead in the 10 Mb/s Ethernet PCI
adapter market by cutting the prices of its EtherWORKS Turbo PCI adapters
by up to 28%. The EtherWORKS Turbo PCI Combo, which includes twisted-pair,
AUI, and ThinWire connections, now lists for $179. The twisted-pair-only
version, the EtherWORKS Turbo PCI TP, is now $149.

The Company also reported NetBench 3.0 performance results showing that the
EtherWORKS Turbo PCI adapters have better CPU utilization than competitive
products shipping today. In one instance, this meant that a server using
an EtherWORKS Turbo PCI adapter served more than twice the number of
client stations than the same server using a competitor's adapter.

Customer Cites Excellent Performance and Price

"We've found the PCI adapters to be excellent performers," said Wayne
Church, network manager for ITT Hartford Insurance Group's Personal Lines
Insurance Center, a division that sells directly to older Americans. "The
price is very attractive as well -- especially since we buy direct and
have the adapter bundled with the PC." The division uses EtherWORKS PCI
Turbo PCI adapters in PCs running Windows and a terminal emulation package
to run a mainframe insurance policy-writing application. The Ethernet
adapters connect Digital PCs to a mainframe gateway, which in turn
connects to the mainframe.

Building on a strong tradition of technological excellence, Digital is
leading the way in the networking industry today. According to revenue
figures from the International Data Corporation (IDC), Dataquest, and
Rising Star Research, Digital holds the number three market position in
routers, hubs and LAN switching markets, and holds the number two position
in FDDI technology. Digital's Network Product Business has pioneered a
new, converged model for networking in which hubs, routers and switches
are deployed on an integrated platform. In addition, Digital's expertise
in network integration services has connected more than 13 million users
worldwide.

Digital Equipment Corporation is the world's leader in open client/server
solutions from personal computing to integrated worldwide information
systems. Digital's scalable 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.

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