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DATA GENERAL REPORTS THIRD QUARTER RESULTS

 WESTBORO, Mass., July 27 /PRNewswire/ -- Data General Corporation (NYSE: DGN) today reported a net loss of $16.4 million, or 47 cents per share, for its third quarter, which ended June 26, 1993. During its third quarter last year, the company reported a net loss of $11.7 million, or 35 cents per share.
 Revenues for the third quarter were $252.4 million, compared with revenues of $259.2 million for the third quarter of last year.
 Commenting on the quarter, Data General President and Chief Executive Officer Ronald L. Skates said, "The weak worldwide economy, particularly in the European marketplace, and industry-wide competitive pricing pressures continued to negatively impact both our revenues and overall results."
 Skates noted that, "Our AViiON open systems computer line, which is Data General's leading revenue producer, again posted strong revenue growth compared to the previous year's comparable quarter.
 "However, revenue declines in our proprietary ECLIPSE line and in our services business more than offset the strong AViiON performance," said Skates. "Our results also reflect the negative impact of changes in foreign exchange rates. Excluding the effects of foreign exchange, our revenues in the current quarter would have been higher that the level reported a year ago."
 According to the company, a customer base of more than 20,000 AViiON system installations, with a total value of $1 billion, has been established in just four years.
 The company further strengthened the AViiON line in June with the introduction of the AV 9500 family of servers. The new line ranges from a dual-processor version to a powerful 16-processor model that will be capable of processing 1600 million instructions per second (MIPS) and 1,000 transaction per second (TPS). Two- and four-processor models, which are board upgradeable to the 16-processor model, are available immediately. The 16-processor model, which is four-times faster than the company's previous high-end system, will be available next Spring.
 The company also introduced the mid-range AV 8500 server family, the AV 500 workstation and an enhanced version of its DG/UX Unix operating system.
 "Our intention is to be a leader in the multi-billion dollar open enterprise computer marketplace," said Skates. "The new AViiON servers in conjunction with our CLARiiON storage systems and the high- availability features of our DG/UX operating system provide mainframe- class power, reliability and features at a fraction of mainframe prices. This combination gives us the level of performance needed to be successful in the high-end of commercial computing."
 During the quarter, the company also signed several additional agreements with companies that will resell Data General's CLARiiON open storage systems.
 "We are continuing to build a solid worldwide base of long-term CLARiiON partners," said Skates. "As these relationships develop, we expect to see increasing revenue from our open systems storage line."
 Skates added, "Data General's financial position remains strong with cash and marketable securities of $192.6 million at the end of the quarter. We will continue to closely monitor all spending."
 For the first nine months of fiscal 1993, Data General reported a net loss of $23.2 million, or 67 cents per share. For the same period last year, the company reported a net loss of $63.0 million, or $1.93 per share. The 1992 loss included a restructuring charge of $48 million resulting from costs associated with a workforce reduction.
 Revenues for the three quarters totaled $799.5 million, compared with $827.8 million for the same period last year.
 "The continued success of the AViiON line strongly reinforces our belief that our open systems strategy is correct for the needs of the marketplace," Skates concluded. "However, in light of current worldwide economic conditions, we continue to be very cautious about the remainder of 1993."
 DATA GENERAL CORPORATION
 Condensed Consolidated Statements of Operations
 (In millions except per share amounts)
 Quarter Ended Nine Months Ended
 June 26, June 27, June 26, June 27,
 1993 1992 1993 1992
 Revenues:
 Product $151.9 $151.4 $494.9 $501.3
 Service 100.5 107.8 304.6 326.5
 Total revenues 252.4 259.2 799.5 827.8
 Costs and expenses:
 Cost of product
 revenues 96.7 92.9 302.6 289.8
 Cost of service
 revenues 60.0 63.7 177.8 195.3
 Research and
 development 24.1 27.4 76.0 83.6
 Selling, general,
 and
 administrative 85.3 85.1 257.4 269.8
 Restructuring charge --- --- --- 48.0
 Total cost and
 expenses 266.1 269.1 813.8 886.5
 Loss from
 operation (13.7) (9.9) (14.3) (58.7)
 Interest income 2.1 2.7 6.4 8.7
 Interest expense 3.6 3.6 10.9 10.9
 Loss before
 income taxes (15.2) (10.8) (18.8) (60.9)
 Income tax
 provision 1.2 .9 4.4 2.1
 Net loss $(16.4) $(11.7) $(23.2) $(63.0)
 Primary and fully
 diluted net loss
 per share (47 cents) (35 cents) (67 cents) $(1.93)
 Weighted average
 shares
 outstanding 34.8 33.1 34.8 32.6
 Condensed Consolidated Balance Sheets
 (In millions)
 June 26, Sept. 26,
 1993 1992
 Assets:
 Current assets:
 Cash and temporary cash investments $99.9 $139.5
 Marketable securities 92.7 76.9
 Receivables, net 260.8 298.5
 Inventories 111.3 121.8
 Other current assets 53.1 47.7
 Total current assets 617.8 684.4
 Property, plant, and equipment, net 187.1 196.3
 Other assets 63.3 59.8
 Total $868.2
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable $2.3 $3.9
 Accounts payable 89.2 85.1
 Other current liabilities 204.1 239.2
 Total current liabilities 295.6 328.2
 Long-term debt 162.3 162.3
 Stockholders' equity:
 Common stock and additional paid-in
 capital 418.6 407.8
 Retained earnings 8.0 31.2
 Cumulative translation adjustment (16.3) 11.0
 Total stockholders' equity 410.3 450.0
 Total $868.2 $940.5
 -0- 7/27/93
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN)


CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN

CM -- NE002 -- 6049 07/27/93 08:30 EDT
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Date:Jul 27, 1993
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