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DELL COMPUTER ANNOUNCES DISTRIBUTION AGREEMENT WITH PRICE CLUB; TARGETING NEW CUSTOMERS WITH PRECISION PRODUCT LINE

 DELL COMPUTER ANNOUNCES DISTRIBUTION AGREEMENT WITH PRICE CLUB;
 TARGETING NEW CUSTOMERS WITH PRECISION PRODUCT LINE
 AUSTIN, Texas, March 5 /PRNewswire/ -- In a move to extend its reach within the growing small business and home office markets, Dell Computer Corporation (NASDAQ: DELL) today announced a distribution agreement with warehouse-club giant, Price Club. Under the agreement, Dell Computer will launch a new line of computer systems, called Dell Precision(TM), that will be available beginning in April through Price Club. Financial terms were not disclosed.
 Dell's new Precision line was developed specifically for small business and home office buyers and will be made in the U.S.A. The Dell Precision line will initially offer Price Club members several choices of richly-configured systems with powerful PC performance, pre-loaded software, and a tailored program of service and support.
 "This agreement expands the market segmentation strategy that we began several years ago," said Joel J. Kocher, senior vice president of U.S. sales and operations. "We brought this strategy to the mass merchant market in the fall of 1990 and since then, we have developed a large presence in computer superstores and office superstores. We've made these aggressive moves because we recognize the mass market outlets are very well suited to certain price-sensitive segments of the small business/home office market."
 Mass merchant channels continue to log personal computer sales at a record pace. A recent Dataquest study reported that warehouse and mass merchants will account for 35 percent of business sales and 47 percent of all home sales by 1995.
 The agreement with Price Club is a natural complement to agreements with Dell's current mass market partners -- CompUSA and Staples, according to Dell.
 "While the typical customers for all our mass market outlets are sensitive to price and value, they have different buying intentions and needs based on the focus of the outlets," added Kocher. "This agreement is an incremental expansion of our overall mass market strategy, but does not in any way detract from our focus and emphasis on our rapidly growing direct-sales business."
 "Our company philosophies and focus on customer satisfaction parallel each other, which makes this partnership a natural," said Kocher.
 Precision Line Provides Range of Features.
 To accommodate the self-service style of the Price Club warehouses, the Dell Precision systems will each be packaged as one ready to use unit. The Precision line of personal computers initially will consist of four office systems: the Dell Precision 386SX/25, Dell Precision 386DX/33, Dell Precision 486SX/25, and Dell Precision 486DX/33. The Dell Precision NB25, a 25MHz-Intel 386SL based notebook, will also be offered.
 The price for each system will include a CPU with hard disk drive and two floppy disk drives (3.5-inch and 5.25-inch), a high resolution 1024 x 768, 14-inch color monitor; a keyboard, mouse and a modem. Each system will come bundled with selected business software applications.
 Included in the purchase price will be a specially designed program of Dell's service and support that will include an automated, 24-hour technical support hotline. On-site service through BSC, Dell's national service provider, will be included for the office systems.
 Final prices will be established by Price Club.
 Dell Computer Corporation designs, develops, manufacturers, markets, services and supports a complete line of personal computers compatible with industry standards. Dell pioneered the direct marketing of personal computers in 1984 and was the first company in the PC industry to offer manufacturer-direct technical support. In the company's latest financial results (third fiscal quarter ended Nov. 3, 1991) per-share earnings increased 53 percent to $.52 on a sales gain of 68 percent to $229.3 million.
 Price Company is a $6.5 billion company operating in the U.S., Mexico and Canada and were the originator of the warehouse club industry.
 NOTE: Dell is a registered trademark and Precision is a trademark of Dell Computer Corporation.
 Other trademarks and trade names are used to identify the entities claiming the marks and names of their products. Dell Computer Corporation disclaims any proprietary interest in trademarks and trade names other than its own.
 -0- 3/5/92
 /CONTACT: Michele Moore, 512-343-3535, or Lisa Rohlf, 512-343-3782, or Don Collis (investor), 512-338-8671, all of Dell Computer/
 (DELL) CO: Dell Computer Corporation; Price Club ST: Texas IN: CPR SU:


SH -- NY058 -- 5515 03/05/92 14:06 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Date:Mar 5, 1992
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