EMC Outlines Strategy for Sustained Double-Digit Revenue Growth at Annual Analyst Day; EMC Reaffirms Second Quarter and Full-Year 2006 Business Outlook.

NEW YORK -- EMC Corporation (NYSE: EMC), the world leader in information management and storage, today presented its annual strategy update to investors, analysts and journalists. EMC executives reviewed the company's evolving business model and expanding portfolio of information infrastructure solutions for delivering information lifecycle management and virtual infrastructure.

Joe Tucci, EMC's Chairman, President and CEO, said, "EMC is leading what I believe has become one of the hottest and most dynamic areas of IT: information infrastructure. Over the next several years, we expect to continue to deliver double-digit revenue growth from information storage solutions, while growing five important emerging technologies into billion-dollar businesses."

"It is our belief that IT infrastructures are at the beginning of a significant transformation, from being static and platform centered to dynamic and service oriented," continued Tucci. "Customers are looking for a guide to help them understand and navigate this emerging world. EMC has the expertise, the partners and a terrific set of technologies and solutions to help organizations of all sizes turn service-oriented information infrastructure to their business advantage."

Tucci outlined five business areas within EMC's portfolio that could each reach the billion-dollar level within the next several years: content management, resource management, storage virtualization, security and VMware, the EMC subsidiary and global leader in virtual infrastructure software. These billion-dollar opportunities will be a result of both organic growth and new acquisitions, and, over the next several years, will help drive EMC's double-digit revenue growth.

Mark Lewis, EMC's Executive Vice President and Chief Development Officer, described the next generation of IT and detailed "game-changing" technology developments that will underpin future data centers, including information-centric IT and security, and services-oriented infrastructures.

Diane Greene, President of VMware, outlined where virtual infrastructure is going. With its technology, VMware is ushering in a new era by taking the complexity out of IT infrastructure, adding flexibility and offering customers significantly better returns on their investments. Greene described VMware Infrastructure 3. Shipping this month, the VMware Infrastructure 3 suite is the first truly distributed system, making the promise of utility computing real for customers around the world.

Bill Teuber, EMC's Vice Chairman and Chief Financial Officer, reviewed the ongoing efficiencies contained within EMC's business model and reaffirmed EMC's previously stated second quarter and full-year 2006 financial goals, including:

--Consolidated revenues for the second quarter of 2006 are expected to be at least $2.66 billion.

--GAAP diluted earnings per share for the second quarter are expected to be $0.13. Non-GAAP diluted earnings per share, excluding stock-based compensation and intangible amortization, are expected to be $0.17.

--Consolidated revenues for 2006 are expected to be between $11.1 billion and $11.3 billion. Current expectations are for revenues to be at the lower end of that range.

--GAAP diluted earnings per share for 2006 are expected to be between $0.54 and $0.57. Non-GAAP diluted earnings per share, excluding stock-based compensation and intangible amortization, are expected to be between $0.70 and $0.73.

A replay of EMC's Annual Analyst Day webcast will be available at www.emc.com/ir following the completion of the event.

About EMC

EMC Corporation (NYSE: EMC) is the world leader in products, services and solutions for information management and storage that help organizations extract the maximum value from their information, at the lowest total cost, across every point in the information lifecycle. Information about EMC's products and services can be found at www.EMC.com.

EMC is a registered trademark of EMC Corporation. VMware is a registered trademark of VMware, Inc. All other trademarks are the property of their respective owners.

This release contains "forward-looking statements" as defined under the Federal Securities Laws. These statements are based on current expectations and do not include the potential impact of any mergers, acquisitions, divestitures or business combinations that may be announced or closed on or after the date hereof. 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 general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) risks associated with acquisitions and investments, including the challenges and costs of integration, restructuring and achieving anticipated synergies; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (vi) component and product quality and availability; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) insufficient, excess or obsolete inventory; (ix) war or acts of terrorism; (x) the ability to attract and retain highly qualified employees; (xi) fluctuating currency exchange rates; and (xii) 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. EMC disclaims any obligation to update any such forward-looking statements after the date of this release.

This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of EMC's performance, should be considered in addition to, not as a substitute for, or superior to, measures of EMC's financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP financial measures to GAAP is provided in the text of this release. EMC's non-GAAP measures may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how EMC defines its non-GAAP financial measures.

Specifically, stock option expense, restricted stock expense and intangible amortization is excluded from each non-GAAP financial measure in this release. Management views these items as non-cash expenses that are reported internally as corporate expenses. For purposes of its internal budgets and each reporting segment's financial goals, EMC's management uses financial statements that do not include such items.

EMC's management uses these non-GAAP financial measures to gain an understanding of EMC's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects. These non-GAAP financial measures are also used by EMC's management in their financial and operating decision-making because management believes they reflect the underlying economics of EMC's ongoing business in a manner that allows meaningful period-to-period comparisons. Such comparisons may be more meaningful because operating results presented under GAAP may include, from time to time, items that are not necessarily relevant to understand EMC's business and may, in some cases, be difficult to forecast accurately for future periods. EMC's management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating EMC's current operating performance and future prospects in the same manner as management does if they so choose. These non-GAAP financial measures have limitations, however, because they do not include all items of income and expense that affect EMC's operations. One material limitation of a non-GAAP financial measure that excludes stock-based compensation and intangible amortization is that it does not reflect any benefit that such items may confer on EMC. Management compensates for this and other limitations by also considering EMC's financial results as determined in accordance with GAAP.