Businesses Can Benefit From Latest PC Technology Now, While Reducing Risk of Technology Obsolescence in Future, With AST Computer's New Customized Leasing Program.

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 6, 1997--

AST Financial Services Enables Companies to Better Manage

PC Lifecycles

AST Computer is introducing AST Financial Services, a comprehensive customized leasing program for its complete line of commercial PC products, as part of its plan to provide a total computing solution for both the channel and end-users.

AST Financial Services delivers PC lifecycle management for business users through Leasing and PC Trade-In Programs designed to help manage today's rapid changes in technology and total cost of PC ownership while maximizing performance and productivity. Resellers benefit as well, because leasing provides an additional sales tool for them.

"Working through our channel resellers, we are offering end-users a chance to have the latest PC technology, manage and control PC lifecycles, and preserve financial resources," explained Mary Ann Burns, AST's programs manager, Major Accounts.

The rapid pace of technological advancement can make systems obsolete long before the traditional depreciation cycles end. New applications typically require more powerful PCs, so instead of a three- to five-year lifecycle, many businesses are finding the need to replace their new systems in as little as 24 to 36 months. This is complicated by the fact that growing companies -- looking to improve productivity and gain a competitive advantage -- typically end up purchasing next generation applications, and their old equipment may not be compatible with the new environment.

"Leasing through AST Financial Services helps prevent technological obsolescence by allowing end users to plan system upgrades and replacements as new processors, applications and other developments are introduced," said Burns. "For most companies, keeping on the cutting edge of technology is essential for maintaining a competitive edge in their industry."

PC leasing also helps control costs because businesses can plan ahead and forecast system upgrades and replacements, so they do not have to purchase entirely new systems with every new technological development.

AST Financial Services offers a lifecycle management option to address this: Technology Refresh. This leasing option allows businesses to replace systems at scheduled periods, ensuring that they will be equipped with the most advanced systems available to take advantage of the latest applications -- maximizing productivity and performance and eliminating the need to continually purchase new equipment.

Asset Management

One of the key factors in controlling total cost of PC ownership is managing technology assets from cradle to grave. To help address this, AST Financial Services provides detailed inventory reports with serial numbers, model numbers, locations, cost centers and lease expiration dates. These customized reports help companies track their leased assets, allocate costs appropriately, and forecast upgrades and system replacements.

In addition, AST's Trade-In Program even handles asset recovery, removing obsolete systems and, in most cases, generating cash that can be credited towards new system costs.

Perhaps one of the greatest advantages of leasing is better management of capital resources. Leasing helps companies control their cash flow, particularly with the flexible options available through AST Financial Services. For example, small businesses may qualify for a deferred-payment lease so their capital can be used for other purposes. Seasonal businesses may qualify for a cyclical lease, which lets them take advantage of seasonal variations in cash flow that might otherwise be a detriment to a traditional lease.

"Leasing is also more cost effective because it helps companies get more for their money," added Burns. "Instead of having to settle for what their immediate cash flow allows, businesses can invest in the high-end systems they need and spread the payments out over time."

Financing

To offer AST Financial Services, AST has made arrangements with Tokai Financial Services Inc. and MFP Technology Services Ltd., two of the leading leasing services companies. Tokai has considerable experience leasing business equipment through the dealer channel, and has a wide variety of leasing options designed to meet the needs of small, medium and large businesses.

As one of the top five leasing companies in North America, MFP will focus primarily on larger enterprise customers. The company will provide leasing and related asset management services such as procurement, leased asset tracking, refresh strategies and asset disposition.

Leasing Through the Channel

AST Financial Services also benefits the company's channel resellers. AST is working with Tokai to train resellers about the benefits of leasing and how to successfully market it. To help its resellers sell the leasing option, AST Financial Services has developed a special sales training kit with educational materials such as video and customer presentations on the benefits of leasing. AST will also be working closely with its VARs to help them take full advantage of this powerful selling tool, traditionally underutilized in the PC industry.

"AST remains dedicated to the channel, and AST Financial Services is an excellent new selling tool for them," said Burns. "Not only will it help them sell more AST equipment, but resellers can generate additional revenue by offering services and training on newly leased systems.

"In addition, 100 percent cost coverage allows all soft costs -- such as service, software, installation, and maintenance -- to be included in the lease."

AST and its leasing companies are willing to work with resellers to conduct joint sales calls. Both Tokai and MFP have a wealth of experience in selling the advantages of customized leasing programs and asset management.

"The key to the success of this leasing program is our service," Burns concluded. "We have designed AST Financial Services to have the flexibility necessary to meet demands of small, medium, and large business while still offering personalized service to each customer."

AST Computer

AST Computer develops and markets 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 business needs, from traditional corporate business applications to customized small business programs.

The company is a wholly owned subsidiary of Samsung Electronics, based in Seoul, South Korea. Worldwide corporate headquarters is located at 16215 Alton Parkway, P.O. Box 57005, Irvine, Calif., 92619-7005. Telephone: [phone]. Fax: [phone]. Information about AST and its products can be found on the World Wide Web at http://www.ast.com . -0-

NOTE: AST Research Inc. owns the AST registered trademark and the AST logo trademark.

CONTACT: AST

Camerone Welch-Thorson

714/727-8858

[e-mail]

or

Creamer Dickson Basford

Christopher Dobens, 714/724-5944

[e-mail]