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ZEOS ANNOUNCES SIGNIFICANT PC PRICE CUTS; NEW SYSTEM LINEUP INCORPORATES HIGH SPEED LOCAL BUS VIDEO AND HARD DISK DRIVE INTERFACE

 ST. PAUL, Minn., Jan. 6 /PRNewswire/ -- ZEOS International, Ltd. (NASDAQ-NMS: ZEOS) today made one of the boldest moves yet in the PC value wars with the introduction of 20 new i486-based PC system offerings. The new systems, which replace ZEOS's present line of desktops, are priced up to 18 percent less than their predecessors.
 The new offerings improve further on the company's previous introduction of systems incorporating VESA Standard local bus technology. New market leading video options plus the addition of a new high speed local bus hard disk drive interface promise to keep ZEOS ahead of the pack in terms of key performance features. The resulting improvements enable the company to offer Windows graphics video performance up to four times faster than its previous video offerings. IDE hard disk drive performance has also been significantly increased with data transfer rates up to 225 percent that of previous models.
 These new ZEOS announcements are in response to the company's belief that customers are becoming increasingly value conscious, looking not only for lower price points but increased levels of performance as well. Zeos' additional focus on video and disk drive performance is in part a result of the continued popularity of Microsoft Windows and the growing importance of extremely fast data retrieval from hard disk drive subsystems.
 The new PC's are based on the Intel 80486SX, 'DX and 80486DX2 microprocessor families; the 'SX-25, 'SX and 'DX-33, 'DX2-50 and 'DX2-66 Megahertz (MHz). Each processor is available in four standard model configurations ranging from an entry level 486SX-25MHz priced at $1,395 with 2 megabytes of RAM (Random Access Memory) and an 85-megabyte hard drive, to a 486DX2-66MHz system offered at $2,995 and featuring 16 megabytes of RAM and a 340-megabyte hard disk drive; these prices also include one and two floppy disk drives, monochrome and color video displays respectively and other differentiating features. With price reductions of up to $700 on the high-end 486DX2-66, Model 4, the average price reduction over the standard product line is $350. The reductions range from $125 on average for the four i486SX-25 models to an average of $525 on 486DX2-66MHz standard system packages.
 The highest speed video option is available for an additional $149 over the standard system price. In its most recent issue, dated Jan. 26, 1993, PC Magazine reviewed 74 Intel 486DX2-66MHz based computer systems. In a discussion of video performance PC Magazine noted: "The ZEOS 486DX2-66 is a Windows desktop machine that blew away our Windows graphics test routines (it doubled the score of its closest competitor and was nearly four-fold better than our previous best-ever score ..." The magazine also noted: " ... the ZEOS 486DX2-66's video system, which, at a Graphics Winmark score of 42.6 megapixels per second, shattered our previous record -- eclipsing the score of the Compaq QVision graphics adapter by nearly fourfold."
 In reference to the latest introductions, Greg Herrick, chairman and CEO of ZEOS International, noted "We've had our fair share of issues over the last few quarters, but one thing should be perfectly clear to all our competitors -- we've not been standing still. On the contrary, ZEOS is continuing to focus on both our product and operational areas. We are clearly positioning ourselves as a major player in the personal computer industry.
 "The performance and pricing of these new ZEOS systems clearly demonstrates that ZEOS' commitment to build on its reputation as a leader in advanced PC systems. In addition, this new product line-up with its significantly lower prices provides a value that is simply not available from anyone else.
 "We haven't stopped with a new product line either. We have recently completed the consolidation of PC operations from five buildings into one allowing us to streamline operations company wide.
 "We are continuing to develop and enhance our management information systems with our new Data General AViiON 6240. In addition to strengthening information systems, this is also allowing us to begin to extract maximum benefit from our customer databases. As an example we are presently in the process of our first-ever "mass mailing," sending promotional materials to over 350,000 customers and prospective customers.
 "In addition, we have dramatically enhanced our critical telecommunications systems with the installation of AT&T's new Definity G3I telephone system.
 "These and other improvements have been aided by a strengthening of our management team including the addition of Martyn Ratcliffe as president and COO, Charles Henderson as vice president of finance, and James Tickner as vice president of procurement and materials.
 The improvements in the company's operational efficiencies have also resulted in a reduction of lead times for the company's products. According to a company spokesperson, ZEOS is targeting one week as an average lead time on order shipments. In addition, the company intends to expand its "Computers Now!" program, a program which, subject to certain conditions, allows orders for selected system configurations to ship to customers the same day the order is placed.
 ZEOS International, Ltd., manufactures and markets, direct to end users, ISA and EISA (Industry and Extended Industry Standard Architecture) personal computer systems and workstations worldwide. The company also provides contract product design services through its PC Tech subsidiary.
 -0- 1/6/93
 /CONTACT: Rick Apple, vice president, marketing, 612-623-9614, or (customers) ZEOS Sales Department, 800-423-5891/
 (ZEOS)


CO: ZEOS International, Ltd. ST: Minnesota IN: CPR SU:

AL -- MN003 -- 2057 01/06/93 08:33 EST
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Date:Jan 6, 1993
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