AST reinforces commitment to channel with ground-breaking prices; recent competitor price slashings no match for AST's aggressively priced notebooks and desktops.

IRVINE, Calif.--(BUSINESS WIRE)--July 29, 1996--Reinforcing its commitment to the channel, AST Computer Monday announced that despite recent price slashing activities by several major PC vendors, the company's commercial desktops and notebooks remain as much as 25 percent below similarly-equipped models from other PC players.

"Our new streamlined business model gives us the flexibility to quickly align and readjust our pricing," stated AST's President and Chief Executive Officer, Ian Diery. "We are leveraging industry-wide component price reductions and passing this savings onto our customers.

"We are giving our VARS and resellers a competitive response to both the direct and indirect models from our competitors."

AST's new pricing announcement places desktop and notebook products above par with competitor offerings, and in some cases, well below major competitors with comparably-equipped systems.

"Some direct manufacturers would like resellers to believe that channel players cannot quickly pass along component cost reductions to their customers due to high levels of existing inventory," said Diery. "We are proving this theory to be dead wrong with our new Bravo and Ascentia systems.

"Our newest products allow resellers to deliver the fastest and most highly-configured desktop and notebook systems to their customers at super aggressive prices."

The recent price moves on AST's Bravo commercial desktops and Ascentia notebooks can represent hundreds of dollars of savings for reseller customers. Additionally, AST's award-winning commercial desktops and notebooks add tremendous value due to innovative software and hardware features.

AST-CommandCenter for example, available on Bravo commercial desktops, provides a level of system management virtually unmatched by any other PC manufacturer today.

Complete with hardware and software-based virus protection, stringent security, DMI asset management, as well as remote diagnostic capability, AST-CommandCenter adds up to reduced cost of ownership and increased business efficiency.

Standard on Bravo MS-T Pro 6180 and 6200 minitowers is a special AST-CommandCenter feature known as AST-IntraAccess, a first-of-a-kind software bundle with network browsing and Web authoring tools. AST-IntraAccess includes all of the software that one needs to make sharing data via a company Intranet a breeze.

"Our philosophy here at AST is quite simple -- to be the best friend to the reseller and VAR community -- and to provide them the utmost in price, performance and service," Diery noted. "Our very aggressively-priced, award-winning lines of commercial desktop and notebooks allow us to pass on these values to them."

Bravo Commercial Desktops

The new Bravo commercial desktops come in several flavors, the entry-level Bravo LC, a Pentium processor-based system, the mid-range Bravo MS, also a Pentium processor-based system and the Pentium Pro processor-based performance Bravo MS-T Pro minitower.

AST's recently introduced next generation of Bravo commercial desktops are propelled by the latest Intel Pentium and Pentium Pro processor technologies and range in price from $1,300 for an entry-level Bravo LC to $2,900 for a high-end, fully loaded Bravo MS Pentium Pro processor-based minitower.

AST's powerful Bravo MS-T Pro 6200, for example, comes with a 200MHz Pentium Pro processor, 2.5 GB hard drive, 32MB RAM, 8X CD-ROM drive and 2MB WRAM -- all for about $2,900.

Ascentia Notebooks

Featuring flexible, modular designs, superior battery life and large crisp displays, AST's Ascentia notebooks are in a class by themselves.

"Nowhere else will you find the feature set and level of support at the price points that we offer in our newest notebooks," Diery said.

"Today, you can get our high-end Ascentia P50 -- a 133MHz Pentium processor-based system with a 1.2GB hard drive, 16MB standard RAM, integrated modular 4X CD-ROM and a SmartPoint touch pad for $4,499 -- as much as 23 percent below comparably-equipped notebooks from competitors."

AST believes that users and resellers today are extremely savvy about what they want -- power and performance without compromising technology or value. They want a return on investment that doesn't sour in a year's time.

"Our new commercial desktop and notebook systems are designed to address these needs and also allow users to move toward the 21st century without worrying that their PCs will become obsolete," Diery noted.

Attachments I and II contain pricing information on the Bravo and Ascentia products.

In the Blink of An Eye

Information about AST's products can be found on the World Wide Web at http://www.ast.com. Recently given a face lift, AST products and company information are now easier than ever to find and explore. Just point and click on the Bravo eye or the Manhattan icon and a home page with all of the latest information on Bravo and Manhattan products will be at your fingertips.

Also available on AST's World Wide Web site is Web Support, a feature that allows users to e-mail questions from the Web site directly to AST's on-line support team.

Corporate Background

AST Research Inc., a member of the Fortune 500 list of America's largest industrial and service companies, is one of the world's leading personal computer manufacturers. The $2.468 billion company develops a broad spectrum of desktop, mobile and server PC products that are sold in more than 100 countries worldwide.

AST systems meet a wide range of customer needs, from corporate business applications to advanced home and home office use. Corporate headquarters is located at 16215 Alton Parkway, P.O. Box 57005, Irvine, 92619-7005. Telephone [phone] or 800/ 876-4278. Fax [phone]. -0- NOTE: AST is a registered trademark and Bravo is a trademark of AST Research Inc. Intel and Pentium are registered trademarks and Pentium Pro is a trademark of Intel Corp. All other products or services mentioned herein may be trademarks or registered trademarks of their respective owners. -0-

         AST COMMERCIAL DESKTOP SYSTEMS - EFFECTIVE 7/29/96

               Part     EIDE  RAM   Cache Graphics CD-ROM  New $  Old $
               Number   HD                 RAM
BRAVO MS-T PRO
==============
BravoMS-TPRO6200
 Model 2500C 503058-301 2.5GB 32MB  256KB 2MBWRAM Yes-8X  $2,993  $3,335
Bravo MS-T PRO 6180
 Model 1600C 503057-301 1.6GB 16MB  256KB 2MBWRAM Yes-8X  $2,375  $2,691

BRAVO MS-T
==========
Bravo MS-T 5200
 Model 2000C 503043-501 2.0GB 16MB  256KB 1MBSGRAM Yes-6X $2,283  $2,582
Bravo MS-T 5166
 Model 1200W 501972-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,955  $2,243
 Model 2000C 501972-501 2.0GB 16MB  256KB 1MBSGRAM Yes-6X $2,185  $2,473
Bravo MS-T 5133
 Model 1200W 501956-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,610  $1,898
 Model 2000W 501956-401 2.0GB 16MB  256KB 1MBSGRAM   No   $1,725  $2,013
Bravo MS-T 5100
 Model 1200W 501955-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,449  $1,783
 Model 2000W 501955-401 2.0GB 16MB  256KB 1MBSGRAM   No   $1,599  $1,898

BRAVO MS
========
Bravo MS 5166
 Model 1200W 501954-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,898  $2,185
 Model 2000C 501954-501 2.0GB 16MB  256KB 1MBSGRAM Yes-6X $2,128  $2,415
Bravo MS 5133
 Model 1200W 501952-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,553  $1,840
 Model 2000W 501952-401 2.0GB 16MB  256KB 1MBSGRAM   No   $1,668  $1,955
Bravo MS 5100
 Model 1200W 501951-301 1.2GB 16MB  256KB 1MBSGRAM   No   $1,426  $1,725
 Model 2000W 501951-401 2.0GB 16MB  256KB 1MBSGRAM   No   $1,541  $1,840

BRAVO LC
========
Bravo LC 5166
 Model 1200W 501961-301 1.2GB 16MBa 256KB 1 or 2MB   No   $1,783  $1,927
Bravo LC 5133
 Model 1200W 501959-301 1.2GB 16MBa 256KB 1 or 2MB   No   $1,438  $1,582
Bravo LC 5100
 Model 1200W 501958-301 1.2GB 16MBa 256KB 1 or 2MB   No   $1,311  $1,449

a: 1 or 2 MB dedicated to graphics
-0-

Ascentia Notebook Pricing

Effective July 29, 1996

Model Part# Proc- LCD LCD RAM HDD  Old $ New $

essor Type

P30P/100CSS11 501996-301 P/100 11.3"STN SVGA 8MB 800MB $3,499 $3,179 P30P/100CSS11 501996-401 P/100 11.3"STN SVGA 8MB 1.2GB $3,999 $3,499 P50P/133CTS11 501997-301 P/133 11.3"TFT SVGA 8MB 800MB $4,499 $4,179 P50P/133CTS11 501997-401 P/133 11.3"TFT SVGA 8MB 1.2GB $4,999 $4,499

CONTACT: Camerone Welch-Thorson, 714/727-8858

camerone.welch-thorson@com