Dell Board Authorizes Increase in Company's Stock-repurchase Program.

Business Editors and High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--June 5, 2002

Dell's (Nasdaq:DELL) board of directors today authorized a 250-million-share increase in the company's stock-repurchase program.

The increase brings the total number of authorized shares to 1.25 billion, of which more than 950 million have been repurchased at an average cost of less than $11 each since the program's inception in 1996. Dell bought back an average of more than 15 million shares in each of the past two quarters, and expects to repurchase about the same number of shares in the current period.

Intended primarily to offset stock-based employee compensation plans, stock repurchase has been accretive to Dell's earnings per share, reducing weighted average shares outstanding by 16 percent during the past six years.

"Crisp execution of our customer-focused direct business model helps us consistently generate outstanding cash flow," Kevin Rollins, Dell's president and chief operating officer, said. "As a result, we've essentially self-funded our industry's fastest and most-profitable growth, while maintaining share buyback as a priority."

Size and timing of stock purchases under the program will continue to be based on factors including price, use of stock in employee compensation and market conditions.

About Dell

Dell Computer Corporation (Nasdaq:DELL), the world's most preferred computer systems company, is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. The company's revenue for the past four quarters totaled $31.2 billion. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained at www.dell.com.

Dell is a trademark of Dell Computer Corporation.

Dell disclaims any proprietary interest in the marks and names of others.

Special note: Statements in this press release that relate to future results and events are based on the company's current expectations. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including general economic and business conditions; the level of demand for the company's products and services; the level and intensity of competition in the technology industry and the pricing pressures that have resulted; the company's ability to timely and effectively manage periodic product transitions, as well as component availability and cost; the company's ability to develop new products based on new or evolving technology and the market's acceptance of those products; the company's ability to manage its inventory levels to minimize excess inventory, declining inventory values and obsolescence; the product, customer and geographic sales mix of any particular period; and the company's ability to effectively manage its operating costs. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission.