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DIGITAL CELEBRATES GROUNDBREAKING OF WORLD-CLASS SEMICONDUCTOR MANUFACTURING FACILITY

 DIGITAL CELEBRATES GROUNDBREAKING OF WORLD-CLASS
 SEMICONDUCTOR MANUFACTURING FACILITY
 HUDSON, Mass. -- October 8 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) formally broke ground today for construction of one of the most advanced semiconductor manufacturing plants in the world. The new plant will produce future generations of Digital's recently announced Alpha family of semiconductors, the world's fastest 64-bit microprocessor.
 The 526,000 square foot facility is scheduled for completion in 1994 and is currently the largest privately funded construction project in Massachusetts. Marshall Contractors, Incorporated of Rumford, R.I. is managing the construction. Manufacturing of Alpha products will commence in 1996.
 A groundbreaking ceremony was hosted by Robert E. Caldwell, vice president, Semiconductor Operations. Caldwell, whose responsibilities encompass all aspects of Digital's semiconductor business including manufacturing, commented on the advanced technology represented by the Alpha product set. "Being part of the Alpha team gives me a glimpse into the future and what I see is very exciting." said Caldwell. "We will be able to open new markets to solve more complex business and scientific problems in a remarkably efficient manner, in ways we can only imagine today."
 Caldwell introduced Massachusetts Gov. William F. Weld, Lt. Gov.


Paul Cellucci, Mr. Joseph Durant, Chairman, Hudson Board of Selectmen and Digital President and Chief Executive Officer, Robert B. Palmer.
 In his remarks Palmer noted that Alpha's superior capabilities are the foundation of a sound business strategy into the next century. "This investment demonstrates Digital's commitment to leadership in price performance," noted Palmer. "Investments in semiconductor technology are a foundation for the strong leadership in open systems which we intend to have."
 Code named Fab-6, designating the sixth version of Digital's semiconductor fabrication operation, the project consists of a three story building of approximately 434,000 square feet, a separate utility building of 82,000 square feet and 8,800 square feet of underground tunnels. Fab-6 is adjacent to the current semiconductor facility which will produce the first two generations of Alpha products. The older facility will be converted for administrative purposes in support of the new building when construction is complete. Total integration of research and production will be maintained. This is a critical component in the development of semiconductor product design and manufacturing processes.
 The products produced in the new facility will be state-of-the-art. A high degree of flexibility was an important planning criterion to extend the life of the facility into the next century and accommodate the dynamics of technology. As a result of a "clean room" environment, water purification and recycling processes, precision manufacturing equipment and support for that equipment, Fab-6 will be an advanced world class semiconductor manufacturing facility.
 In a separate statement, Michael McNally, Director of Field


Operations for Marshall Contractors, Inc., noted that Industrial Design Corporation (IDC), of Portland, Oregon, Fab-6's engineer, is a leader in the industry and has designed some of the most significant semiconductor fabrication facilities in the world.
 "The Fab-6 project represents the most aggressive attempt by one company to advance semiconductor manufacturing process technology to the next century," he commented. "Facilities built by other companies have addressed current processes, but the Fab-6 facility will facilitate growth and advancement beyond today's technology."
 An undertaking of this complexity must undergo a substantial environmental review permit process under the Massachusetts Environmental Protection Act (MEPA), before construction can begin. There was a high degree of cooperation between state, local and Digital officials to insure the permit process was carried out in an efficient fashion.
 In his remarks Governor Weld noted that this construction exemplifies how public and private interests can work together. "Fab-6 is a wonderful example of what can come of the cooperation and hard work of both the private sector and the Commonwealth. By choosing to keep jobs and talent here in Hudson, Digital has once again shown its commitment to the men and women of Massachusetts. Together, we can look forward to a promising 21st century," Weld said.
 At the conclusion of the program, guided tours were conducted through Digital's existing semiconductor facility.
 Digital Equipment Corporation, headquartered in Maynard, Mass., is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions - from desktop to data center - in open information environments.
 -0- 10/8/92
 /CONTACT: Richard Price 508-493-2743 of Digital Equipment Corp.
 (DEC) CO: Digital Equipment Corp. ST: Massachusetts IN: CPR SU:


TM -- NE010 -- 7927 10/08/92 14:01 EDT
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Date:Oct 8, 1992
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