EMC Maps Out Next Step in Evolution of Leadership - Automated Information Storage.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Aug. 2, 2001

EMC Corporation (NYSE:EMC) today will outline the next major evolution for its second decade of technology and market leadership - automated information storage. At an annual gathering of more than 400 equity and industry analysts and journalists here, company executives will map out EMC's vision for delivering open, networked information storage solutions with increasingly automated management software that will create unprecedented simplicity and cost savings for organizations coping with massive volumes of data.

Mike Ruettgers, EMC Executive Chairman, said, "The most dramatic customer benefits from information storage lie just ahead, and EMC is paving the way. For the past decade EMC has brought continuous innovation and advancement to the storage, protection, sharing and management of information. Information storage is still very early in its evolution as an independent technology. We are expanding the role of information storage from a networked information repository to an active enabler of business. The next major step is automated information storage, which will enable organizations to set high-level IT policy and have all the needed changes to their information infrastructures happen almost automatically. EMC's goal is to help our customers do more with less, driving their costs down while driving their revenues up."

Joe Tucci, EMC President and CEO, said, "Organizations of all sizes must simplify their information infrastructures. Only EMC has the vision, capital and consistent strategy to truly fulfill this requirement. Storage automation will enable EMC to expand our market opportunity and extend our lead in both technology and market share. We believe this next phase of EMC's evolution should propel us to a business model with slightly over 30% of our revenue coming from software and approximately 20% from services in 2003, while we continue to enhance the world's most powerful, reliable and functional storage hardware platforms." During the most recent quarter, software and services represented 25% and 11%, respectively, of EMC's total revenue.

Jim Rothnie, EMC Senior Vice President and Chief Technology Officer, will detail EMC's technology foundation for automated information storage and its deep roots in the layers of software innovation established over a decade of leadership. "EMC is re-inventing the process of managing storage. One of the central elements in transforming the management of information storage is data mobility - the automated movement of data to raise performance while lowering management costs," Rothnie said.

"Like all advances in EMC information storage technology," Rothnie said, "this next major step is being created on the shoulders of giants. Thousands of person-years have gone into the continuous evolution of EMC solutions and led to new technologies like automated information storage." Automated information storage is an open strategy including all server and connectivity types, open APIs, cooperative support agreements, and connectivity to and management of heterogeneous storage platforms.

EMC senior executives also will describe the importance of consistent strategy; the rapid evolution of EMC's technological directions; openness, simplification and lower cost of ownership through the automation of information storage; a strong business model that fuels high levels of strategic investments; and the company's powerful sales and services infrastructure.

EMC Corporation (NYSE:EMC) is the world leader in information storage systems, software, networks and services, providing the information infrastructure for a connected world. Information about EMC's products and services can be found at http://www.emc.com.

EMC is a registered trademark of EMC Corporation.

This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in economic conditions in various geographic markets and fluctuating currency exchange rates; (ii) an unexpected decline in the revenue growth rate without a corresponding decline in costs; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage and server markets; (iv) component quality and availability; (v) rapid technological and market change and the transition to new products; (vi) the relative and varying rates of product price and component cost declines; (vii) the ability to attract and retain highly qualified employees; (viii) the uneven pattern of quarterly sales; (ix) risks associated with strategic investments and acquisitions; (x) the Company's ability to execute on its plans; and (xi) other one-time events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission.