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DATA GENERAL REPORTS THIRD QUARTER RESULTS

 DATA GENERAL REPORTS THIRD QUARTER RESULTS
 WESTBORO, Mass., July 22 /PRNewswire/ -- Data General Corporation


(NYSE: DGN) today reported a net loss of $11.7 million, or 35 cents per share for its third quarter ended June 27, 1992. During its third quarter last year, the company reported net income of $35.6 million, or $1.05 per share, including a one-time gain of $13 million from the sale of its Japanese subsidiary, Nippon-Data General.
 Revenues for the third quarter were $259.2 million compared with revenues of $301.2 million for the third quarter last year.
 Operating loss for the quarter was $9.9 million, compared with operating income of $26.2 million for the third quarter of 1991.
 Commenting on the quarter, Data General President and Chief Executive Officer Ronald L. Skates said, "Our overall revenues continue to be negatively impacted by the weak worldwide economy and industry- wide competitive pricing pressures."
 The company noted that while overall revenues were down, revenues for its AViiON family of open systems computers again increased during the quarter and now exceed the revenues for the proprietary ECLIPSE MV product line.
 The AViiON line was further strengthened last week with the introduction of the AV 6280 and the AV 8000-8 systems, Data General's most powerful AViiON servers to date. The new systems are capable of processing 235 million instructions per second (MIPS), twice the performance of previous high-end AViiON servers. The company also unveiled two new mid-range servers, the AV 4605 and AV 4625, which offer 40 percent more performance at the same price that the mid-range systems they replace.
 In addition to the new AViiON servers, the company also introduced its second generation of high availability disk storage subsystems, based on advanced RAID (Redundant Array of Inexpensive Disk) technology, as well as a series of enhancements to its DG/UX UNIX operating system.
 "These new products greatly enhance our open systems offerings to the commercial marketplace," said Skates. "Because of their high availability and outstanding price/performance, they are ideal for businesses which have large database requirements or want to downsize or offload their mainframe-based software applications."
 In addition to the new AViiONs, the company also introduced new high-end and mid-range ECLIPSE MV/Family systems during the quarter.
 The New ECLIPSE MV/60000, which will be shipping this quarter, can process 108 million instructions per second, double the performance of the company's former high-end MV. The new mid-range ECLIPSE MV/35000 offers 40 percent greater performance than previous mid-range systems.
 "Our corporate-wide program to reduce costs continues to show progress and our financial position remains strong with cash and marketable securities of $225.4 million at the end of the quarter," said Skates.
 "Data General's challenge is to increase revenues," added Skates. "The new products we recently introduced significantly strengthen both our AViiON and MV product families and are key elements in our efforts to resume revenue growth and return to sustainable profitability."
 For the nine months of fiscal 1992, Data General reported a net loss of $63.0 million, or $1.93 per share. The loss includes a restructuring charge of $48 million resulting from costs associated with a workforce reduction. For the same period last year, the company reported net income of $67.3 million, or $2.10 per share.
 Revenues for the three quarters totaled $827.8 million, compared with $933.3 million for the same period last year.
 Operating loss for the nine-month period was $58.7 million, including the $48 million restructuring charge, compared with operating income of $63.4 million in the prior year.
 Skates concluded, "While we are confident that our strategy is correct for the needs of the marketplace, we continue to be very cautious about the remainder of 1992 in light of current worldwide economic conditions."
 DATA GENERAL CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (in millions except per share amounts)
 Quarter ended Nine months ended
 6/27/92 6/29/91 6/27/92 6/27/91
 Revenues:
 Product $151.4 $198.2 $501.3 $605.3
 Service 107.8 103.0 326.5 328.0
 Total revenues 259.2 301.2 827.8 933.3
 Costs and expenses:
 Cost of product revenues 92.9 97.3 289.8 308.7
 Cost of service revenues 63.7 60.6 195.3 190.8
 Research and development 27.4 25.1 83.6 76.2
 Selling, general and
 administrative 85.1 92.0 269.8 294.2
 Restructuring charge -- -- 48.0 --
 Total costs and expenses 269.1 275.0 886.5 869.9
 Income (loss) from operations (9.9) 26.2 (58.7) 63.4
 Gain on sale of subsidiary -- 13.0 -- 13.0
 Interest income 2.7 2.2 8.7 4.6
 Interest expense 3.6 2.8 10.9 8.9
 Income (loss) before
 income taxes (10.8) 38.6 (60.9) 72.1
 Income tax provision .9 3.0 2.1 4.8
 Net income (loss) $(11.7) $35.6 $(63.0) $67.3
 Primary and fully diluted net
 income (loss) per share (35 cents) $1.05 $(1.93) $2.10
 Weighted average shares
 outstanding 33.1 33.8 32.6 32.1
 DATA GENERAL CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In millions)
 6/27/92 9/28/91
 Assets:
 Current assets:
 Cash and temporary cash investments $121.8 $149.1
 Marketable securities 103.6 92.0
 Receivables, net 300.6 276.9
 Inventories 127.2 136.4
 Other current assets 40.7 36.1
 Total current assets 693.9 690.5
 Property, plant and equipment, net 197.7 204.5
 Other assets 54.8 49.0
 $946.4 $944.0
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable $3.9 $5.7
 Accounts payable 88.5 72.4
 Other current liabilities 241.8 206.6
 Total current liabilities 334.2 284.7
 Long-term debt 163.7 164.9
 Stockholder's equity:
 Common stock and additional
 paid-in capital 403.2 391.8
 Retained earnings 30.8 93.8
 Cumulative translation adjustment 14.5 8.8
 Total stockholders' equity 448.5 494.4
 $946.4 $944.0
 -0- 7/22/92
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN) CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN


TM -- NE004 -- 1689 07/22/92 08:38 EDT
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Date:Jul 22, 1992
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