Michael Dell Says Internet-Driven Growth Puts Technology Industry in Early Days of `Most Exciting' Period; Internet-Infrastructure Build-Out Plays to Dell's Strengths, He Says

Business Wire, June 27, 2000

Business Editors & High-Tech Writers

PC Expo 2000

NEW YORK--(BUSINESS WIRE)--June 27, 2000

The chairman and chief executive officer of Dell (Nasdaq:DELL) said today that the view from the leading edge of the build-out of the global Internet-infrastructure is "incredible," and that his company is playing a primary role in the continuing development of that landscape.

Michael Dell, whose company has consistently been the fastest-growing and most-profitable provider of computer systems and services, made his comments this morning to a group of business reporters on the first day of PC Expo, an annual technology trade show here.

"Even in an industry accustomed to rapid growth, the type of predicted near-term market expansion driven by the Internet is incredible," said Mr. Dell. "In my view, these are the earliest days in the most exciting period yet in the evolution of computing technology. And I wouldn't trade Dell's competitive position for any other company's."

As evidence of the broad opportunity, Mr. Dell pointed to industry-analyst forecasts of Internet users.

"The number of people buying and selling goods and services over the Web will reach nearly 330 million this year, on the way to more than 600 million in 2003," he said. "By the end of the decade, it will exceed 1 billion people."

According to Mr. Dell, current and anticipated online traffic is fueling a massive expansion of the global Internet infrastructure.

"Businesses and other organizations will spend $370 billion annually on that build-out by 2003," said Mr. Dell. "The resulting opportunity plays directly to the strengths of our company."

Web-related technology spending, he said, is growing not only at the core of the Internet, where companies are installing servers and data-storage systems that power online commerce, but at its edge, where users are purchasing advanced personal computers and other devices to maximize the Internet experience. Dell already is the No. 2 supplier of servers worldwide and in the United States.

Industrywide demand for services to help companies, especially small businesses, harness the power of the Internet is also soaring, and could surpass $70 billion a year in 2003. Such services include consulting, productivity tools and Web hosting.

Separately, Dell today announced the latest in its expanding portfolio of Internet services: for consumers, Dellnet by MSN, in conjunction with Microsoft Corp.; and capabilities for small businesses, including DellEPro, an Internet-access program offered in collaboration with AT&T.

"What distinguishes Dell as a leading provider of technology and services at the core and edge of the Internet is the massive credibility we've built by applying Web-based tools throughout our own business," said Mr. Dell. The company's sales via www.dell.com top $40 million per day.

That knowledge, combined with information gleaned from its direct customer relationships, he added, gives the company considerable authority as those customers move to exploit the power of the Internet themselves, leading them to Dell's broad and growing range of Internet-related products, services and partnerships. (Additional information about the company's Internet-infrastructure strategy is available online, at www.dell.com/howeworks.)

About Dell

Dell Computer Corporation (Nasdaq:DELL) is the world's leading direct computer systems company, based on revenues of $27 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 210 on the Fortune Global 500 and No. 3 on the Fortune "most admired" lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com.

Dell is a registered trademark of Dell Computer Corporation.

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Dell disclaims any proprietary interest in the marks and names of others.