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CHANNEL MARKETING RAISES COMPUTER HOUSEHOLD PENETRATION ESTIMATES TO 2.5 COMPUTERS BY 1999

 DALLAS, July 1 /PRNewswire/ -- Channel Marketing Corp.(TM), located here, just released its 1993 edition of "Changing Trends in the Distribution of PCs in the 90s." The report said that by the end of the decade, there will be an average of 2.5 personal computers installed in each of America's households. This compares to last year's estimate of 2.2 per household.
 "Changing Trends in the Distribution of PCs in the 90s" is a comprehensive report that addresses many issues the personal computer industry will face throughout the remainder of the decade. Certain channels of distribution, such as those included in the Power Channel, are on the rise and are rapidly stealing market share; and the customers making purchases through this channel have dramatically altered their buying habits. Some of the data included in the report comes from the statistical pages which break out yearly sales of personal computers by customer type and percentage that will be sold through each channel of distribution.
 Channel Marketing is predicting an incredible increase in PC penetration, which confirms the explosive growth now taking place in the home market. At the end of 1992, Channel Marketing estimates there were over 30 million PCs being used in more than 28 million households. Continued lower prices combined with increased mass market retail availability will contribute to the projected household penetration of 2.5 computers by 1999.
 Several additional factors are contributing to the purchase of computers for the home. At the forefront is the increasing growth of home-based businesses and telecommuting. As many companies, large and small, continue to downsize in both space and personnel, more employees are working at home. Whether they work for themselves or for someone else, daily business can now be conducted from any location.
 Children are also affecting home computer sales. As the "Baby Boomer's" children become more proficient in the use of computers at school, many parents want to provide their children an advantage by giving each child his or her own computer. Families also want to have access to the on-line information utilities such as America Online, CompuServe and Prodigy. Additionally, many colleges and universities now require students to own their own computer. Channel Marketing projects that by the end of the decade, the notebook computer will be as common in schools across America as the pocket calculator is today.
 The manner in which these computer purchases are taking place is rapidly changing. Channel Marketing believes virtually 100 percent of these home computer shoppers frequent consumer electronics stores, warehouse clubs or other mass merchandiser retailers. With availability of brand name computers in many more outlets such as consumer electronics stores and warehouse clubs, brands such as IBM, Compaq, Apple and Dell have now garnered market share in retailers such as Best Buy, Circuit City, Sam's Club and Price Club. The report forecasts more than 50 percent of all computers sold in 1995 will go through the doors of these retailers. Buying a computer will be no different than buying a VCR or microwave oven, particularly since most computers come with all software installed.
 Channel Marketing, headquartered in Dallas, is an international market research and consulting firm that specializes in developing sales and marketing strategies and programs for companies that desire to increase market share. Channel Marketing is the leading expert in assisting PC companies expand their distribution into the mass market, both domestically and internationally.
 -0- 7/1/93
 /CONTACT: David M. Goldstein of Channel Marketing, 214-239-3305, Ext. 214/


CO: Channel Marketing Corp. ST: Texas IN: CPR SU:

MC -- DV001 -- 7482 07/01/93 07:01 EDT
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Date:Jul 1, 1993
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