Digital Chairman Robert B. Palmer Outlines Company's Strategy At Annual Meeting Of Shareholders

Digital's Momentum Fueled by Strengthened Financial Position, Unified Sales

and Marketing Structure and Early Lead in High-Growth Markets

Internet Business Solutions and Internet-based Enterprise Computing Are

among the Key Elements of Digital's Growth Strategy

Nov 13, 1997, 00:00 ET from Digital Equipment Corporation

    BOSTON, Nov. 13 /PRNewswire/ -- At the company's Annual Meeting of
 Stockholders held today at the World Trade Center, Digital Equipment
 Corporation (NYSE:   DEC) Chairman Robert B. Palmer outlined the company's
 strategy, which is built on Digital's strengths and is designed to capitalize
 on opportunities in the marketplace.  Palmer cited how key developments this
 year -- including the establishment of a single worldwide sales and marketing
 organization, a single products division, a stronger balance sheet, and
 settlement of a lawsuit with Intel Corporation -- significantly bolster
 Digital's future prospects.
     "I am confident that this is the year that Digital will begin to grow
 again," said Palmer.  "I am confident because of the talent and dedication of
 our employees, our commitment to customer and partner satisfaction, and our
 ability to increase shareholder value through the execution of a sound
 business strategy.
     "Based on the extremely positive response to our agreement with Intel,
 many independent analysts agree with this outlook," he added.
     Palmer emphasized the important role the Internet is already playing in
 enterprise computing, predicting that the Internet will become the universal
 computing platform of  choice.  "Digital's mission," he said, "is to deliver,
 with our partners, Internet business solutions based on high-performance
 platforms and services.
     "Our objective is very simple -- we want customers and partners to view
 Digital as the most trusted provider of Internet-based solutions for the
 enterprise," stated Palmer.  "This is a natural extension of the company's
 historic strengths in providing networked and distributed computing
 architectures for the enterprise; takes advantage of our leadership in
 delivering high-performance 64-bit platforms and operating systems; builds on
 our history as an Internet innovator; and relies on our ability to provide
 systems integration, services and support on a worldwide basis.  Digital is
 only one of a few companies that can deliver the systems, software, storage,
 services, and partnerships that make up an Internet-based enterprise."
     These new solutions are now marketed more aggressively -- and with greater
 global reach and coordination -- under Digital's single worldwide sales and
 marketing organization -- which already has improved customer service and
 re-energized the Digital brand, said Palmer. Digital's industry-leading 64-bit
 Alpha technology will remain a critical element of the company's future
 strategy and a key enabler for both enterprise and Internet business
 solutions, which are by their nature high-performance business solutions.
     "We believe that one of the preferred platforms for Internet solutions
 will be Digital's 64-bit Alpha systems," said Palmer.  "With our agreement
 with Intel, Digital is in a stronger position than ever to assure customers
 and partners that the Alpha architecture is something that they can depend on
 for the long-term."
     Intel-based systems will remain critical to Digital's platform strategy --
 with x86 systems today and IA-64 in the future -- and will further extend
 Digital's growth this year.
     Plans to port 64-bit Digital UNIX to IA-64, and to work with Microsoft as
 it develops a common programming model for 64-bit Windows NT on Alpha and IA-
 64, will allow Digital to increase its leadership in enterprise-strength
 Windows NT and Digital UNIX, according to Palmer.
     "Digital works with its customers to find the best solution to meet their
 computing needs_we propose the operating system most appropriate for the
 specific problem the customer is trying to solve," he said.
     Already one of the top service providers in the industry, Digital's
 Worldwide Services organization will  be a primary driver of the company's
 growth this year.
     "Today, customers spend 47 percent of their IT budgets on services, and
 industry projections indicate that spending will be closer to 60 percent  by
 the year 2000.  We are in a strong position to take advantage of this growth,"
 said Palmer.
     During the Annual Meeting proceedings, Vernon R. Alden, Thomas L. Phillips
 and Delbert C. Staley were re-elected to the Board of Directors.  In addition,
 advisory stockholder proposals relating to declassification of the Board of
 Directors and to redemption of the Corporation's Stockholder Rights Plan were
 passed.  Proposals relating to the hiring of an investment banker and to
 separating the offices of chairman and president were rejected.
     Digital Equipment Corporation, recognized for product and service
 excellence, is a leading supplier of high-performance, Web-based computing
 solutions which help enterprises compete in the global marketplace.  Digital
 gives its customers a winning Internet advantage through a comprehensive
 portfolio of Internet solutions based on award-winning systems, advanced
 networking infrastructure, innovative software, and industry applications -
 including those from its business partners.  The expertise and experience of
 Digital employees help customers plan, design, implement, manage and support
 Internet solutions in countries around the world.  For the latest company
 information, visit Digital on the World Wide Web at
     Note: All company or product names may be trademarks or registered
 trademarks of the companies with which they are associated.

SOURCE Digital Equipment Corporation