CII Predicts U.S. PC Market Will Grow 14% in 1996; Consumer Market Growth Will Continue to Outpace Business Market Growth.

LA JOLLA, Calif.--(BUSINESS WIRE)--May 6, 1996--Computer Intelligence InfoCorp (CII), the computer and communications industries' leading source of fact- based information, forecast today that the overall U.S. personal computer market will grow by 14 percent for 1996. This compares with 24 percent growth for the PC market in 1995.

The consumer market will continue to grow at a higher rate than the business market, with CII data predicting home PC market growth reaching 23 percent this year, down from last year's rate of 27 percent. Sales to businesses are expected to grow by 9.6 percent. First-time household purchases will help drive consumer sales, though the CII research showed that the home PC market is increasingly dependent on repeat buyers. More than half of the consumer PCs bought in 1995 were purchased as replacements for older machines or in addition to PCs already owned.

The findings detailing overall ebb and flow in the U.S. PC market emerged from CII's Market Model, Projected Market Monitor, and StoreBoard Channel Tracking databases, which provide an integrated view of past, present and future technology shipments in U.S. and international markets.

"Despite gloomy forecasts for PC market growth, there are few manufacturing industries in the world where a 14 percent growth rate would not be welcomed," said Dave Tremblay, CII's Senior Industry Analyst for PCs. "The U.S. PC market is simply maturing, and that's what's slowing growth."

U.S. Business Market

Among PC hardware vendors, many companies that have traditionally paced growth in the business market faltered in Q1 1996. Compaq, the leader in this market since 1994, posted a 23 percent unit sales decline in Q1 1996 over the same period in 1995. IBM, NEC, Apple, AST and Zenith all saw their sales to businesses drop over 10 percent in the first quarter of 1996, with Apple and AST posting sales declines in excess of 30 percent.

The findings detailing business market sales emerged from CII's Projected Market Monitor, which surveys the technology usage patterns and purchase plans of 3,000 workplace establishments each month.

"Our findings show that pockets of opportunity did exist, and those who positioned themselves properly prospered," said Tremblay. Vendors posting strong sales gains included relative newcomer Micron, which had unit sales growth of over 100 percent. This growth propelled it onto the Top Ten list of companies selling into the workplace market. Hewlett-Packard was second on the list of unit sales growth winners, as it continued the strong PC market push it began in 1995. Unit sales volumes at Acer, Dell, Toshiba and Gateway 2000 all grew more than 25 percent as well.

Channel Results

Results from CII's StoreBoard Channel Tracking database show that although purchases by corporations were down in the first quarter of 1996, other segments picked up the slack. The retail channel (including consumer electronics stores, PC superstores, office superstores and dealers) grew 23 percent in the first quarter of 1996, while unit sales among PC dealers increased 29 percent.

CII found the majority of vendors showing positive growth in retail channels in Q1 1996, with most experiencing a 25 percent increase. Toshiba's sales through the channel doubled over the same period one year ago, as demand for its portable computers remained strong. Alternatively, channel sales for Packard Bell, a vendor accustomed to high growth rates, were flat in the first quarter of 1996 over Q195. Apple and IBM both registered sales declines through the channel in the first quarter of 1996 from a year ago.

Growth in U.S. PC Units Sold Through Retail Channels

Manufacturer         Q1 Year-to-Year Growth

Hewlett-Packard               100%
Toshiba                       100%
NEC                            82%
Acer                           66%
Compaq                         45%
Packard Bell                 -0.2%
Apple                          -8%
IBM                           -21%

Total                          26%

Computer Intelligence InfoCorp, a Ziff-Davis Publishing Company, is the leading source of fact- based information for the computer and communications industries. CII's extensive research capabilities provide a wide variety of products and services that help computer and communications companies sell and market more effectively. All of the company's products and services are based on proprietary information databases built and maintained by CII specialists. Headquartered in La Jolla, Computer Intelligence InfoCorp has offices in Cambridge, Mass.; Farmington, Conn.; Mountain View, Calif.; and Europe. Samples of CII's extensive market data and research results, timely commentary from industry authorities and previews of upcoming technology events are available at the company's site on the World Wide Web (http://www.compint.com).

CONTACT: Judith Vanderkay or Stacy Karp Mosher

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Mark Fisher

Computer Intelligence InfoCorp, 619/535-6730