Dell Brings Consumer Electronics Home for the Holidays; Redesigned Dell.com to Offer Digital Music Players, LCD TVs, with Quality and Value Customers Expect from Dell.

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Business Editors/High-Tech Writers

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ROUND ROCK, Texas--(BUSINESS WIRE)--Sept. 25, 2003

Dell (Nasdaq:DELL) confirmed its entry into the consumer electronics category today, announcing the planned introduction of a series of Dell digital entertainment products including digital music players, an online music service and a multifunction LCD television and computer monitor that will be available in the United States for the holiday season.

Dell also previewed its redesign of Dell.com, a leading online retail store.

"We are revolutionizing technology for our customers -- again," said Michael Dell, chairman and chief executive officer. "By introducing high-performing consumer electronics products that closely integrate with the computer, we are delivering what is most important to consumers -- content and experience -- at a better value than they're currently getting.

"We want our customers to enjoy music, movies, home films and personal communications, when, where and how they want," Mr. Dell said. "We are expanding our product offerings and enhancing Dell.com, and doing it in time for the holiday buying period so important to consumers."

Mr. Dell said the company will roll out a series of Dell products in the fourth calendar quarter that will be easy to buy from Dell.com or over the telephone, and easy to incorporate into home computing platforms and networks. He said the Dell.com site, which will relaunch in October, has been revamped to greatly enhance the customer purchase, usage and service experience.

Through Dell's existing partnerships with leading manufacturers and service providers, customers can already buy thousands of software and computer accessories through Dell.com. What's more, many of these accessories and software applications are tested with Dell systems to help ensure interoperability and ease of use, as well as to discover and resolve issues before customers experience them.

Dell products that will be available for purchase in time for the holidays include a digital music player, online music service, multifunction LCD television and computer monitor, a home entertainment projector and a wireless handheld. Mr. Dell said the move into a broader consumer electronics category is a natural extension of the company's existing product portfolio and provides customers with a single resource for consumer technology needs.

To help customers get the most out of their PCs, Dell also announced today an exclusive software application for home digital media management. The Dell Media Experience converts the PC into a digital entertainment center that makes it easy to listen to digital music files, add music to photo slideshows, watch DVDs, and view video clips.

Dell pioneered use of the Internet as a sales channel beginning in 1996, becoming the first company to record $1 million in online sales in 1997. Dell's U.S. Home & Home Office division alone generated more than $2.8 billion, or roughly 50 percent of its revenues, online in fiscal year 2003, exceeding annual U.S. revenues of companies commonly cited as leading Internet retailers(a). It is the eighth most visited online retail Web site in the United States and the most visited among U.S.-based computer companies(b).

To debut in October, the updated Web site features back-end and visual improvements that simplify product category segmentation and effectively display the breadth of Dell's computer and consumer electronics products and services. The new features also ease navigation, provide enhanced imagery, and expand the amount of information available for consumers to make buying decisions.

Pricing and additional details of Dell's new consumer electronics and computers will be announced when the products become available.

About Dell

Dell Inc. (Nasdaq:DELL) is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Company revenue for the past four quarters totaled $38.2 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.

Editor's Note:

For preliminary information about the products Dell announced today, see the product fact sheet listed below.

Dell is a trademark of Dell, Inc.

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

(a) eMarketer, company reports, June 2003, showing annual revenues by total and then breakdown by operating segment for publicly traded Internet retailers, pp. 51-59.

(b) comScore Networks, summer 2003 survey, Aug. 13, 2003.

New Dell products previewed today include:

Dell Digital Jukebox (DJ)

The Dell DJ is a digital music player featuring a sleek design, with large storage capacity, excellent battery life and easy-to-use controls.

Dell Music Store

At the Dell Music Store, customers can learn about and purchase the Dell DJ digital music player and accessories and access the new music download service that offers thousands of music selections and allows seamless, legal downloading of songs to the Dell DJ. The service can also analyze customers' song play history to recommend specific artists and songs that can be purchased using the service.

Dell W1700 LCD TV 

The Dell W1700 LCD TV integrates an ultra-bright flat-panel monitor and a television tuner into one device, making it perfect for multimedia customers who want to watch TV and streaming video, play games, and utilize PC applications all on the same display device. The wide format 17-inch display can be used as either a television or as a computer monitor, is HDTV input ready and features integrated speakers for high audio performance.

Dell Media Experience

Dell Media Experience is an application that will soon ship standard on all new Dimension desktops. It enables consumers to use their PC to manage digital media such as photos, music, digital videos and DVDs. Dell Media Experience is designed to be an important tool for making the PC the nerve center of the digital home.

Dell Axim(tm) X3

The Dell Axim X3, Dell's newest handheld, is a thinner, lighter companion to the popular Dell Axim X5. The X3 features optional integrated 802.11b wireless connectivity in a clean, sophisticated design.

Dell Dimension(tm) XPS 

The Dell Dimension XPS provides optimal performance in 3-D gaming, high-end multimedia applications, and demanding productivity applications. System expansion is made simple through advanced configuration and peripheral options.

Dell 2200MP Projector

The Dell 2200MP Projector takes projection technology from the boardroom to the home. The affordable projector offers clear images, smooth, high-contrast video and flexible connectivity. It displays larger-than-life images of sporting events, video games or DVDs on a wall or screen in vivid color. When used in conjunction with Dell PCs and consumer electronics, the Dell 2200MP Projector makes home entertainment easy and fun.

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