Dell Takes Home PC Customers to the Net With New ISP, Online Storage and a Dell-Branded Consumer Portal - Company Business and Marketing

Edge: Work-Group Computing Report, August 2, 1999

Capitalizing on its strong momentum in the PC consumer market, Dell Computer Corporation (Nasdaq:DELL) Tuesday unveiled a new online initiative that leads with its own Internet access service program, Dellnet, and connects home PC customers with personalized services, products and news through a Dell-branded Internet portal.

The online consumer initiative begins Dell's third year of focus in the consumer arena. In the past year, Dell's share of the consumer market has grown from No. 7 to No. 4 (Q1 '99) according to Ziff Davis InfoBeads. For the last two years, Dell's consumer units have grown 80 percent year-over-year and the company has its crosshairs firmly set on the No. 1 position.

"Dell's advantage in the consumer market is its ability to maintain a direct relationship with the customer," said Paul Bell, senior vice-president and general manager of Dell's home and small business group. "With Dellnet (www.dellnet.com) we provide a single point of contact for personalized products and services to build a lifelong customer relationship."

Dellnet will provide Dell home PC customers with one-year of Internet access(1) with the purchase of a Dell Dimension desktop or Inspiron notebook PC. Prices for Dell's Dimension PCs with Dellnet service begin at $959 or $29 a month(2).

In addition to Internet access, Dellnet features 20MBs of online backup service(3) from AtBackup to help protect customers against data loss. The service also provides remote access to their information from other computers.

The Dellnet Web site, located at www.dellnet.com offers a personalized portal, or start page, created for Dell by Snap.com. The Dellnet portal features free Web-based e-mail, discounts on non-Dell products and services, Internet directory and search capabilities, shopping services, portfolio tracking applications, customized news, sports information, communications and chat functionality. Snap.com is the fast-growing Internet portal service currently slated to be merged with XOOM.com Inc. (Nasdaq:XMCM) and select NBC Internet properties to form a new company, NBC Internet.

The www.dellnet.com also offers programs to help customers develop personal Web pages through Homestead.com, software from MusicMatch(4) that turns PCs into digital jukeboxes and tutorials on digital photography developed by Kodak.

"The integration of exciting programs over the Internet like Homestead.com, MusicMatch, and Online Backup by AtBackup represents Dell's strategy to make it easy for our customers to discover new ways to make their computers more productive and useful," said Bell.

Also featured on www.dellnet.com are previously announced Web-based features including:

* Dell Auctions, where customers can buy and sell previously owned PCs online and qualify for promotions when purchasing a new Dell PC;

* Advanced online service and support including "Ask Dudley," an online natural language support tool that provides answers to customers' technical questions in understandable terms;

* Personalized service and support pages;

* Easy access to more than 30,000 hardware and software products and computer-related accessories through Gigabuys.com, Dell's online superstore.

Ranked No. 78 among the Fortune 500 companies and No. 210 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $19.9 billion for the past four quarters. 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 through its toll-free number 800/388-8542 or by accessing the Dell World Wide Web site at www.dell.com.

1. Dellnet includes 150 hours Internet access per month, with $1.50 per hour charge for each hour (or fraction thereof) over 150 hours. Remote subscribers subject to an additional charge of $4.95 for each hour of Dellnet service. Additional surcharge of $1.00/hour for Dellnet service in HI and AK. Excludes applicable taxes and local/long distance telephone access fees or charges.

2. Dell Dimension PC at $959 or $29 a month includes a Dimension L400c, Dellnet Internet access, 400MHz Intel Celeron processor, 32MB memory, 6.4GB hard drive, 15-inch (13.8 viewable) monitor, 40X CD ROM, 56K modem, sound, video, speakers, Windows 98, MS Works Suite 99 with Money 99 Basic, 3-year limited warranty, 1-year next-business-day onsite service and support. Price of $29 a month price is based on 48-Month Purchase Plan offered through Dell Financial Services L.P., 14050 Summit Drive, Austin, TX 78728 to qualified customers. Only available in the 50 U.S. states and District of Columbia, except AR and MN. Availability may be limited or offer may vary in some states. $29 payment based on advertised system cost of $959. Payments are based on 48-month term at 18.99% APR with approved credit. Excludes taxes and shipping charges, which vary (for example, based on sales price $899 for a desktop system, the total of sales taxes and shipping charges via 3-to-5 day ground to Hartford City, IN, would be for 48-month term at 18.99% APR, with approved credit. Excludes taxes and shipping charges which vary, (for example, based on the sample original sales price of $899, the total of sales taxes and shipping charges via 3-5 day ground to Hartford City, IN, would be $139.95 (includes sales taxes of $44.95 and shipping charges of $95.00)). Taxes and shipping charges are due with first payment unless you choose to include them in the amount financed, in which case your monthly payment will be higher.