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DATA GENERAL ANNOUNCES WORKFORCE REDUCTION; RESTRUCTURING CHARGE OF $46 MILLION

 DATA GENERAL ANNOUNCES WORKFORCE REDUCTION;
 RESTRUCTURING CHARGE OF $46 MILLION
 WESTBORO, Mass., April 1 /PRNewswire/ -- Data General Corporation (NYSE: DGN) announced today that it will record a charge of approximately $46 million against its second quarter, which ended March 28, as a result of costs associated with a worldwide workforce reduction of approximately 1,000.
 The company also said that while revenues for its AViiON family of computer systems continue to be strong, preliminary indications are that total second quarter revenues will be lower than what most industry analysts have projected. This is due to weakness in the company's other product lines, competitive pricing pressures and a weak worldwide economy. While the results are not yet determined, the company said it may report an operating loss for the quarter, prior to the restructuring charge.
 The company said that the workforce reduction will be worldwide with a significant number of administrative positions being eliminated within the company's international operations.
 According to the company, approximately half of the employees who are affected by the workforce reduction have been notified and the remainder will be informed in the near future.
 Many of the reductions will be possible because of the increased use of technology to handle administrative functions. The reductions will not impact Data General's sales force or its research and development organizations.
 "Data General is positioned both organizationally and strategically to succeed," said Data General President and Chief Executive Officer, Ronald L. Skates. "Our product strategy is correct. We have an aggressive product development schedule that includes major new additions to our AViiON family and important new ECLIPSE products that meet the needs of our customers. In addition, our financial position continues to be strong." At the end of the first quarter, the company had cash and marketable securities of $249 million.
 "This is a painful, but necessary, step. Competitive and economic factors are accelerating the need for companies both within and outside the computer industry to become more efficient," said Skates. "This action will make Data General an even more efficient producer of high-quality products and will not impact our ability to provide service to our customers."
 The company, which reported net income of $4.0 million for its first quarter of fiscal 1992, employed 8,100 at the end of that quarter, which ended Dec. 28, 1991.
 -0- 4/1/92
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN) CO: Data General ST: Massachusetts IN: CPR SU: PER


TM -- NE001 -- 3725 04/01/92 08:30 EST
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Publication:PR Newswire
Date:Apr 1, 1992
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