Packard Bell Sets New Industry Standard With the Introduction of $699 Consumer PC

Business Wire, May 28, 1998

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 28, 1998--Packard Bell establishes a new category with the introduction of the first $699, full-featured, brand-name consumer PC available in stores nationwide Thursday.

Packard Bell NEC, a company that has always prided itself on its "firsts," created the sub-$1,000 category in January 1997 by being the first major manufacturer to offer a computer with the latest technology priced at $999. Now, Packard Bell is once again setting a new industry standard by offering a feature-packed system that in essence creates a new sub-$700 consumer PC category.

"We believe we are once again setting the standard by being the first major manufacturer to offer a complete, robust consumer PC at a new, precedent-setting price, $699," said Mal Ransom, senior vice president of marketing for Packard Bell NEC. "We're paving the way for further penetration into the home PC market."

According to International Data Corporation, sub-$1,000 systems will account for 35 percent of U.S. consumer desktop shipments in 1998. "We believe that the low-cost consumer PC market will continue to expand due to even lower price points," said Kevin Hause, an analyst with IDC. "The increasingly lower system prices should appeal to both first time and experienced buyers."

Packard Bell's new systems are feature-rich, value-packed PCs available for less than half the cost of comparable systems just a year ago. Focusing on the applications and features that customers use most, the Packard Bell 550 features a Cyrix 233 MHz MMX(tm) Enhanced MediaGX(tm) processor with 24MB of memory and 2.1GB hard drive for a suggested retail price of $699.

Packard Bell is also introducing its 750 model which features a Cyrix M II(tm) - 266 MMX(tm) Enhanced processor, 48 MB of memory and 4.3 GB hard drive for a suggested retail price of $999. Both systems are housed in full-size, minitower chassis to provide strong upgrade and expansion potential.

Consumers also receive the benefits of Packard Bell's Starter Pack to help novice users get productive immediately and Support Pack for virtual tech support and to protect kids' access to the Internet.

In addition, the Packard Bell system offers the best integrated software package available including Microsoft Word 97, Works 4.5, Encarta 98 Encyclopedia, plus other brand name edutainment, entertainment, finance, graphics, telecommunications and Internet tools.

All systems are backed by a one-year limited warranty for free technical support for hardware defects. Premier support, a pay-as-you-go service, is also available for in-depth "how-to" questions, software training and other assistance.

Packard Bell's service and support warranty is designed to provide customers with the support they want and need, along with the option to purchase on-site service upgrades, service extensions, and hardware and software technical support.

"Packard Bell has always been on the forefront of technology, and we're excited to raise the bar once again," Ransom added. "We're proud to deliver systems that fulfill our vision -- enabling all people to realize their full potential through the power of computing."

Packard Bell Configurations and Pricing Packard Bell 550 Estimated Retail Price: $699 Cyrix 233 MHz MMX(tm)Enhanced MediaGX(tm)processor, 24 MB memory, 2.1 GB hard drive, 24X CD-ROM and 56 Kbps modem; housed in minitower chassis.

Packard Bell 750 Estimated Retail Price: $999 Cyrix MII(tm)- 266 MMX(tm) Enhanced processor, 48 MB memory, 4.3 GB hard drive, 24X CD-ROM and 56 Kbps modem; housed in minitower chassis.

Company Background

Based in Sacramento, Calif., privately held Packard Bell NEC, Inc. is the number-three supplier of personal computers in the United States and the number-five supplier worldwide. The company designs, manufactures and markets a broad range of desktop, notebook and mobile computers and network servers under the Packard Bell, NEC and Zenith Data Systems brands.

Packard Bell NEC's major manufacturing operations are in Sacramento; Fife, Washington; Angers, France; Sao Paolo, Brazil; and Penang, Malaysia. For more information on Packard Bell NEC, visit www.packardbell.com.

    CONTACT:  Ketchum Public Relations, Los Angeles
               Yunsun Wee, 310/444-1310
               yunsun.wee@ketchum.com