Dell Achieves Industry Leading Global Share of 19.3 Percent in Second Quarter

(Auszug aus der Pressemitteilung)

Round Rock, Texas, August 17, 2006 – Dell reported revenue of $14.1 billion

for the second quarter of fiscal year 2007, an increase of 5 percent
year-over-year. Operating income was $605 million, or 4.3 percent of
revenue, which includes $119 million of stock-based compensation. The
company priced aggressively in a slower market resulting in operating income
which was lower than its May expectations on similar revenue. As a result,
EPS for the quarter finished at 22 cents.

„While we are disappointed with the results for the quarter, we are taking
the necessary actions to correct missteps and improve our results for the
long term,“ said Kevin Rollins, Dell chief executive officer. „Key actions
include accelerating cost initiatives, increasing investments in service and
support, and better pricing management.“

Dell Achieves Record Global Share
Dell achieved a record, industry-leading global share of 19.3 percent with
units up 6 percent for the quarter. International sales, up 11 percent for
the quarter, were led by the Asia- Pacific and Japan region, where Dell
moved to the No.2 position. The emerging markets of China, Brazil and India
were led by strong unit growth of 37, 77 and 82 percent, respectively. In
both China and Brazil, Dell expects to be No. 1 in servers with nearly 26
percent and 41 percent share, respectively.

Cash flow from operations was almost $700 million and Dell ended the quarter
with $10.8 billion in cash and investments. Dell spent $1.0 billion in the
quarter to repurchase 43 million shares of common stock.

Turnaround in Customer Experience
The company’s intense focus on leadership in customer experience has
resulted in a significant turnaround in all aspects of customer experience,
including satisfaction, purchase and repurchase preferences and support.
These improvements have been validated by recent high-profile industry
satisfaction surveys as well as Dell’s own internal data. For example:

  • Satisfaction – Dell’s scores in the annual University of Michigan American
    Consumer Satisfaction Index (ACSI) improved 2.5 points overall, with
    specific gains in customer satisfaction, product quality and service

  • Purchase Preferences – The Investor Business Daily/TIPP Home Computer
    Purchase Outlook Index survey reported Dell was the preferred brand among 50
    percent of likely computer buyers in the July poll versus 41 percent in June
    (next competitor was at 12 percent of respondents). Among likely notebook
    computer buyers, Dell was the No. 1 choice of 60 percent of the respondents.
    It is the highest score for Dell in this category in almost three years.

  • Likely to Repurchase – Dell’s internal „Likely to Repurchase“ data
    registered its highest results for the past six quarters with a 6.5 percent
    increase for relationship customers and a 5.0 percent gain for transactional

  • Service Innovation – DellConnect, a new service innovation, has met with
    great acceptance, as more than one million customers have now used the
    service. DellConnect allows Dell technicians to fix computer issues remotely
    and for free. Ninety-four percent of customers who have received service say
    it makes problem-solving easier and they would recommend it to others.

„While we are not yet satisfied, we are seeing a clear turnaround in
service, support and purchase preferences for Dell,“ said Rollins. „Our
response is to increase our investment in the customer experience throughout
the world and continue this positive momentum to create the best experience
for all of our customers. This is a top priority for us for the long term.“

Dell will increase its investment in customer experience – spanning the
buying experience through service and support – by an incremental amount of
$50 million to $150 million for the fiscal year. The additional investment
will accelerate customer experience initiatives throughout the organization.

Dell Announces Extension of Relationship with AMD to Build Best Product Line in Company History
Dell is extending its relationship with AMD, first announced last quarter.
Dell will launch Dimension desktop computers with AMD processors next month
and will introduce a two-socket and multi-processor server using AMD Opteron
processors by the end of the year.

During the quarter, the company introduced new ninth generation (9G)
PowerEdge servers with Intel’s latest Xeon 5100 series processors. These
systems deliver a 152 percent performance increase over the previous
generation and can lower power consumption by up to 25 percent. Dell is
enthusiastic about Intel’s recent launches of the Core 2 Duo for desktops
and Xeon 5100 Series processors for servers and workstations, and the
upcoming Merom processor notebooks, which help Dell provide great technology
for its customers. Dell’s partnerships with AMD and Intel will greatly
enhance its ability to end the year with the broadest and best product line
in its history.

Total enterprise revenue, which includes servers, storage and associated
services and software and peripherals, grew 11 percent year-over-year, led
by storage revenue, which was up 36 percent. In Storage, Dell had its first
full quarter shipping our new Dell/EMC CX midrange storage systems. Dell
also launched two new Network Attached Storage (NAS) storage servers
designed on its 9G server platform.

Enhanced services revenue was up 21 percent year-over-year to $1.4 billion.
During the quarter, Dell announced Platinum Plus, a new service for
enterprise customers that allows customers to compare critical IT
performance metrics to historical results. Customers can also use the
Real-Time Tracking Window using Google Earth to view around-the-world,
real-time status of service progress. Initial results show customers are
immediately benefiting with a significant reduction in resolution time.

In mobility, revenue was up 8 percent year-over-year on 22 percent unit
growth. Dell is a leader in embedded wireless broadband. The company has
finished a major upgrade of our notebook portfolio, including the 3-pound
Latitude D420. The increased security, connectivity, and durability features
of these notebooks reflect extensive input received from customers.

Dell’s Inspiron E1505 recently received the Best Buy award from Consumer
Reports, citing solid multi-media features and competitive price.
Additionally, the E1505 and the XPS M1210 were both selected as Top 10 Back
to School Systems by Laptop magazine. Desktop computer revenue decreased 4
percent year-over-year on a 1 percent decline in units.

In software and peripherals, revenue grew 10 percent with imaging revenue up
5 percent year-over-year. Consumables were up 46 percent and accounted for
more than 50 percent of Dell’s imaging revenue mix.

Total laser printing revenue was up 34 percent. Dell launched its third
generation of laser printers, including six new color, multi-function, and
mono lasers, delivering superior cost per page results for our customers.
The product line refresh is led by the 3110cn printer, which is three times
faster than its predecessor and delivers enterprise level color laser
performance at less than half the price of a comparable competitor model.

Dell’s Record Global Share Gain led by International Markets
In the Asia-Pacific and Japan region, Dell had unit growth of 27 percent;
almost triple the rate of the industry, excluding Dell. This allowed the
company to move into the No. 2 position in the region with 11.1 percent
share, up 1 percentage point year-over-year. In Japan, Dell also moved to
the No. 2 position with 16.1 percent share.

In Dell’s Americas region, revenue was up 3 percent year-over-year, led by
29 percent growth in Americas International as the countries outside of the
U.S. approached a $4 billion run rate. In the U.S., revenue growth was 1
percent. Dell gained two share points sequentially and has 34.2 percent
share for the U.S. market, which is larger than its next three competitors

In Western Europe, the market’s overall revenue decreased due to a slowdown
in commercial, but Dell’s share in the overall region reached an all time
high of 14 percent with revenue up 3 percent year-over-year and unit growth
of 6 percent.