New AST Advantage! multimedia PCs focus on lifestyles of today's sophisticated home PC users; users who "want it all, get it all" with new Intel Video Phone and Intercast Technology designed to let users phone home and see home at the same time

Business Wire, August 19, 1996

IRVINE, Calif.--(BUSINESS WIRE)--Aug 19, 1996--Planning this year's family reunion will be as simple as logging on to your home computer.

For instance, a fun cruise through the Internet for location information, designing invitations and menu discussions face-to-face with Aunt Mary become reality -- thanks to Advantage! consumer PCs, packed with the latest hardware and software technologies.

Recognizing that today's home market is continually evolving, AST Computer (NASDAQ:ASTA) Monday announced its Advantage! family of consumer PCs that are targeted at four distinct lifestyle segments: individuals interested in communications, gaming, home office productivity and education.

These systems have been designed as solutions to meet the needs that consumers have identified as important to their lifestyle.

"Whether it is staying in touch with distant family members, starting a home business or educating your children, our new Advantage! PCs do it all," said Terry Baker, director of marketing, worldwide consumer products for AST.

"With these new Advantage! systems users that want it all get it all with the latest in PC technology plus special features that appeal to the consumer's individual lifestyles."

Understanding The Customer

The home market now includes small business and family users. Research projections indicate that by the end of the decade, there will be roughly 120 million PCs in U.S. homes. The consumer market arena is evolving as consumers become more computer literate and better understand how computers can compliment their specific interests. The largest growth areas are education, communications, home business and game playing.

According to Richard Zwetchkenbaum, director, Global New Media Consumer Research, IDC/LINK in Framingham, Mass., "Our research confirms the great potential of lifestyle segmentation to expand the consumer market globally, and build customer satisfaction and brand loyalty for vendors who do it best.

"AST has moved beyond a one-size-fits-all technology attribute approach to the home PC market, and delivered customized systems that are designed to fulfill a diverse set of consumer interests, orientations, and lifestyles."

AST believes that the driving force behind first-time home PC purchases is education. Market research has shown that children use PCs in 90 percent of all households that own a PC. This will continue to be an area of growth in the consumer marketplace as schools and educational institutions implement more computer-based learning tactics, and parents see the tangible benefits.

While education is driving first time purchases, research shows that the largest growth segment in the consumer PC market is anticipated to be in the communications area. Fueling this growth will be the increased installation of Plain Old Telephone Systems (POTS), which is expected to have an installed customer base of 2.5 million units by the year 2000.

Research has also shown that 50 percent of current purchases are being made by repeat buyers. This figure is expected to increase to 70 percent by 1999. This opens up the window of opportunity for more PCs that are aimed at diverging and segmenting consumers. Included in this realm will be the gaming market, which is expected to grow from current revenues of $185 million annually to $2 billion by the year 2000.

Lifestyles For Today and Tomorrow

The Advantage! fall line-up features systems designed for the family, home office, education, communications and gaming. Each system utilizes the latest technologies plus enhanced solutions that appeal to the consumer's individual lifestyle.

Intel Pentium processors lead the way on these systems designed for the entire family. Featuring 133MHz-200MHz Pentium processors coupled with 2.5-4.0 GB hard drives, 24MB RAM (minimum), 28.8 DSVD or 33.6 modem, 256KB pipeline-burst cache and 8-speed CD-ROMs, these new multimedia machines are sure to deliver plenty of power and performance to the consumer. Priced affordably at $1,699-$2,799, these systems are now shipping and will be hitting store shelves this week.

AST will be the first in the industry to offer a 4.0GB hard drive when the Advantage! 9314 hits the shelves September 9. Showcasing USB, 2MB graphics RAM and 3-D graphics, this system allows the consumer ample room and speed for an extensive array of computing needs.

LIFESTYLE SEGMENTS

Communications: Advantage! 9312

Now distant family members are only a keystroke away. Bridge that gap and keep in touch face-to-face with the Advantage! 9312 Communications PC. Featuring state-of-the-art communications technology, the Advantage! 9312 is the complete interactive communications PC with Intel Video Phone technology and an analog video camera that allows you to see family and friends up close and personal using a standard phone line.

The system also offers Intercast technology from Intel which combines the rich programming of television and the exciting world of the Internet on the PC. This feature will allow users watching CNN, for example, to download information on the topic that is being broadcast and learn on the spot or save to read later. Priced at $2,599, this system will be available early September.