NEW ALPHASERVER OFFERS LARGE SYSTEM FEATURES AT SMALL SYSTEM PRICES

MAYNARD, Mass. -- February 23, 1995 -- Digital Equipment Corporation today
announced the AlphaServer 400 4/166 -- a new entry-level, 64-bit server.
The new server, with prices starting under $10,000, is ideal for small- to
medium-sized businesses, and for franchise operations needing low-cost
servers in many different locations.

The server supports three operating systems -- DEC OSF/1 (Digital's version
of UNIX), Windows NT, and OpenVMS -- so thousands of applications are
available to help customers run their businesses. The system also
incorporates the high-performance PCI bus--a standard in the PC industry
that enables customers to purchase a wide range of peripherals from the
thousands of vendors that service the PC market.

"With this new server, Digital expects to replicate the success of the
low-cost and highly reliable MicroVAX 3100 systems which were extremely
popular with thousands of installations," said Philippe Ribeyre, vice
president of the Workstations and Low-End Server Business Segment. "The
new AlphaServer 400 4/166 server features the benefits of the MicroVAX
3100 system plus openness through the use of industry standards such as
the PCI bus, and a powerful Alpha microprocessor."

Volume Sales through Channels Partners

Digital will sell the systems directly, and in volume through a its
channels partners. Digital's channels partners are enthusiastic about
selling the product. For example, Shari Chassen, manager of strategic
marketing at MTI Systems, said, "Our Digital sales have certainly gained
momentum, and in fact, they are at an all-time high. This resulted from
MTI being a distributor that specializes in system integration, and the
marketing campaigns that we have recently conducted with Digital. The new
products featured in this announcement further strengthen Digital's market
position as a price/performance leader."

A Reliable, Low-Cost Server

The new server offers large-system features -- high reliability,
sophisticated security, and system management features -- at an attractive
price. Running at 166 MHz, the AlphaServer 400 4/166 operates up to four
times faster than comparable competitive servers. It is ideal for
customers who need a local area network (LAN) server for file, print, and
e-mail applications, or it can function as an application server or a file
backup system.

Outstanding Investment Protection

With the new server, customers' computing investments in Digital's systems
are protected. Digital will offer inexpensive upgrades as new and more
powerful CPU chips are introduced to meet customers' growing computer
requirements.

The system also comes with an industry leading, three-year, warranty
featuring next-day response.

Pricing and Availability

The AlphaServer 400 4/166 server is priced at $9,980 for a system running
the DEC OSF/1 or OpenVMS operating systems and a 1.05 GByte disk, 32
MBytes of memory, a CD-ROM drive, and a PCI Ethernet adapter. A system
with the Windows NT Server operating system and a 1.05 GByte drive, 32
MBytes of memory, a CD-ROM drive, a PCI Ethernet adapter, and a PCI
graphics adapter is priced at $9,315. The AlphaServer 400 4/166 is
currently available and shipping.

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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