Conference 7.286::digital_investing

	    INTERVIEW-Digital (NYSE:DEC) eyes 20 pct Internet share

    By Josephine Ng

    SINGAPORE, Jan 23 (Reuter) - Digital Equipment Corp is
laying the groundwork to capture 20 percent of the global
Internet business by 2000, a senior company official said on
Thursday.
    "We are very aggressively pursuing the Internet business,"
Rose Ann Giordano, Digital's vice-president, Internet business
group, told Reuters in an interview.
    "We would like by 2000 to (have) 20 percent market share
across Internet Service Providers (ISPs), Intranets and Internet
commerce," she said, adding this was the company's worldwide
target.
    Giordano was in Singapore for the Internet World Conference
and Exhibition.
    She said Internet business was one of the company's three
engines of growth expected to help increase its earnings. The
other two are businesses based on its high-performance 64-bit
Unix platforms and Windows NT.
    For the second quarter ended December 1996, Digital's net
profit plummeted to US$31.9 million from US$148.8 million in the
same period previously. The profit was the first in three
quarters for Digital, which has suffered from poor sales to
corporate customers in the United States and Europe.
    Giordano said Digital did not know its global market share
as there was no reliable measurement yet in the Internet
industry. Better measurements would come in the next few years
by which time Digital hoped to reach its target, she added.
    "The market is growing so quickly ...the only thing is to
make sure you get products and services out there to capture the
market share, because that's what counts in the end," she said.
    But Giordano believes Digital already has 20 percent of the
hardware, software and services business to ISPs in the
Asia-Pacific region.
    The next step was for Digital to go after companies'
internal networks, or the so-called Intranet, in the region.
    Besides providing robust and high-performance hardware and
its AltaVista search facilities, Digital is experimenting with
various Internet technologies, Giordano said.
    One of these is Each-To-Each -- collaborative filtering
software that lets users get the kind of information they want.
    Another is Millicent, which is software designed for "micro
commerce" that enables low-value transactions.
    Digital is also working with the entertainment industry to
explore "real time, multimedia, telecasting" technology,
Giordano said.
    The company recently launched a high-performance
microprocessor, StrongArm SA-110, that is being adopted for
stripped-down network computers and Internet and Intranet
appliances.
    "In our research and development laboratories, almost
everything we are doing is Internet related," Giordano said.
    She said Digital recognised it could not cover all the
Internet ground and that was why alliances with software
companies, including Microsoft (NASDAQ:MSFT), were integral to its
strategy.
    "We have a special alliance with Microsoft to share patents
and we have more trained NT specialists than Microsoft ...
there is an inter-dependency," Giordano said.

 Copyright 1997, Reuters News Service

Digital's new 9GB drive for OEMs delivers  industry's highest storage density

    MAYNARD, Mass.--(BUSINESS WIRE)--Jan. 22, 1997-- Digital 
Equipment Corporation, the fastest-growing supplier of storage 
products for the OEM marketplace, today announced a 9GB disk drive 
for use with the company's high-performance StorageWorks RAID arrays 
for OEMs.  The drive, configured in a single cabinet, provides OEMs 
with more than a terabyte of storage in only 7.75 square feet of 
floorspace -- the industry's highest storage density.  
   "Our OEM customers are demanding high-capacity storage solutions 
for a growing number of data-intensive applications such as data 
warehousing, video-on-demand, imaging, and the Internet," said Bill 
Armitage, vice president of Digital's OEM Business.  "The 9GB drive 
is ideal because it more than doubles the storage capacity available 
in the same physical space, lowering overall costs associated with 
large configurations."  
   The 9GB drive is part of Digital's "StorageWorks for OEMs"  
family of products that offers the most scalable storage solutions 
for OEMs and integrators on the market.  
   "With more than 30 years of experience in both the OEM and 
systems businesses, Digital designs state-of-the-art products that 
can be easily integrated into other vendors' systems,"  said 
Armitage.  "Digital's StorageWorks architecture simplifies inventory 
problems for OEMs with storage products that fit in a range of 
packaging options from two-drive containers to huge systems with 
terabytes of data."
   The 9GB drive, based on the industry's leading Ultra-SCSI (Fast 
20) technology, is available immediately in wide versions, and in 
late February for narrow versions.  It comes packaged within 
Digital's OEM Storage Building Blocks.  The drive can be configured 
in high-performance RAID array configurations, supporting RAID levels
0, 1, 0+1, and Digital's Adaptive RAID 3/5.  
   The new Ultra-SCSI disk technology is also available in a 4.3 GB,
one-inch-high model.  
   Digital Equipment Corporation is a world leader in open client/ 
server solutions from personal computing to integrated worldwide 
information systems.  Digital's scalable Alpha and Intel platforms, 
storage, networking, software and services, together with industry- 
focused solutions from business partners, help organizations compete 
and win in today's global marketplace.  
 
   Note to Editors: Digital, the Digital logo, and StorageWorks are 
trademarks of Digital Equipment Corporation.  
 
   CONTACT:  Digital Equipment Corp.
             Karen Quatromoni, 508-841-3367
             Mike Shamrell, 617-266-8400

>    SINGAPORE, Jan 23 (Reuter) - Digital Equipment Corp is
>laying the groundwork to capture 20 percent of the global
>Internet business by 2000, a senior company official said on
>Thursday.

Well great, I feel much better now about the big IBM Internet Solutions Ad
plastered on top at our showcase AltaVista Advanced Query web site. Sure, let's
do well in this market, but we don't want to monopolize it; that would be
illegal. So it's important to give the world the impression that AltaVista is
IBM technology. 

(Old news, the story was printed 05/21/96)

I couldn't find this mentioned in this conference (the other Jeff will correct
me if I missed it..). I found this at the Globe online, while looking for
something else.

Digital made the list in the 8th annual Globe 100 (Boston Globe's ranking of the
top 100 businesses in Massachusetts). It was not even on the list in 1995. The
company was also mentioned specifically in the article:

"Digital Equipment Corp. (up) 45 percent"
"In 1989, Digital Equipment Corp. had 33,000 Massachusetts employees; this year 
 it has 12,000."
"Digital earned a profit last year after four straight years of red ink."


See the story at http://www.boston.com/globe/100/globe100.htm

(Teradyne Inc. was #1, up from #15 previously)

-Jeff

Forgot to mention that the company URL given in the Globe 100 report was...
www.dec.com

Ooops.

-Jeff

    Branding issues aside, it looks like that address should work, at
    least:
    
    > www.dec.com
    Server:  datum.nyo.dec.com
    Address:  16.69.128.12
    
    Non-authoritative answer:
    Name:    www.digital.com
    Address:  192.208.46.158
    Aliases:  www.dec.com
    
    Cheers,
    
    Roy

    Where did .329 come from - what publication?

    Investor's Business Daily, 1/28/97, the Computers and Technology
    "page".

    I pulled this off the online Wall Street Journal:
    
    Digital Equipment Pension Works Around Company Downsizing
    
    SAN DIEGO -- Digital Equipment Corp. (DEC) has suffered
    downsizing not only at the corporate level, but in its
    pension department.
    
    After a massive downsizing effort, Digital has halved its
    number of employees to 55,000 and the benefits department to
    four people worldwide.
    
    The plan now has $2 billion in U.S. defined benefit assets,
    plus $2 billion international defined benefit assets and $1
    billion in 401(k) assets in the U.S.
    
    A. Raymond Schmalz, director of benefits, finance and
    investments for Digital, says he's able to effectively
    continue his job by concentrating on a limited number of
    money managers to run the funds and develop long-term
    relationships with outside vendors. He doesn't use
    consultants to help hire managers, but does use them for
    performance attribution.
    
    Schmalz spoke during a panel discussion on the effects of
    corporate and money management downsizing here at the
    inaugural Corporate Pensions Summit sponsored by Frank J.
    Fabozzi/Information Management Network.
    
    The downsizing has affected many corporations in search of a
    better bottom line. It has lately filtered into the money
    management business.
    
    Samuel DeKinder was on the panel to defend a recent merger -
    London's Invesco PLC and AIM Management Group in Houston,
    which will form Amvesco PLC.
    
    DeKinder, Invesco's director of marketing, denounced the
    Goldman Sachs study that said money management firms will
    severely consolidate in the near future, and relayed a 1996
    Institutional Investor survey that found the top 10 firms in
    1985 managed 23% of the industry's assets, and in 1995, the
    top 10 firms managed just 27% of the industry's assets.
    

     [WAterhouse Research]
                   [Image]

    (UPDATE) Veritas Shares Tumble 7% On 4th-Quarter Earnings Disappointment

          Dow Jones Online News, Thursday, February 06, 1997 at 16:56

    By Anthony Palazzo
    Staff Reporter
       NEW YORK -(Dow Jones)- Veritas Software Corp. shares took a tumble
    Thursday after fourth-quarter earnings disappointed investors.
       After Wednesday's market close, Veritas reported earnings of $3.5
    million, or 24 cents a share, compared with $2.4 million, or 17 cents a
    share, a year earlier.
       Analysts had been expecting earnings of about 25 cents.
       At the close, Veritas's stock was off $4.625, or 9.81%, at $42.50, on
    volume of 747,000, compared with average volume of 219,200.
       However, brokerage house Wessels Arnold Henderson LLC took a more
    upbeat view than other investors, saying in a research note it was
    pleased with Veritas's fourth quarter.
       Wessels noted that Veritas was taxed at a rate of only 13% in 1996.
    Fully taxed earnings would have been 17 cents a share for the fourth
    quarter, 1 cent better than the Wessels estimate. Revenue of $10.8
    million outstripped Wessels' expectation of $10.5 million.
       Weakness in license revenue from original equipment manufacturing
    partners Sun Microsystems Inc. and Digital Equipment Corp. was seasonal,
    the Wessels report said.
       According to the report, Veritas's operating margins will narrow in
    1997 to about 30% from 33% in the fourth quarter as the company invests
    in and broadens its distribution channels.
       Historically, Veritas derived more than 80% of its revenue from OEMs,
    according to Wessels. The company has expanded its sales channels to
    include direct field sales, distributors and resellers, and OEM business
    should fall to 65% of revenue this year from 75% in 1996, Wessels said.
       Veritas, of Mountain View, Calif., makes memory software that works
    within computer operating systems.
       Wessels also adjusted its 1997 and 1998 earnings and revenue
    estimates to account for Veritas's pending acquisition of OpenVision
    Technologies Inc.
       Wessels expects the combined company to earn 83 cents a share fully
    taxed on revenue of $118 million this year, compared to a previous
    Veritas estimate of 81 cents in earnings on $115 million in revenue.
       For 1998, Wessels raised its earnings estimate to $1.22 a share from
    $1.15 and its revenue estimate to $182 million from $170 million.
       Copyright (c) 1997 Dow Jones & Company, Inc.
       All Rights Reserved.

    Companies or Securities discussed in this article:
        Symbol                 Name
    NYSE:DEC       Digital Equipment Corp
    NASDAQ:SUNW    Sun Microsystems
    NASDAQ:VRTS    Veritas Software Corp

               http://www.computerwire.com/computergram


              New York, Published: February 07 1997 
                        Issue Number 3095 



+       DEC'S STRATEGIC RECOVERY - DO THE NUMBERS ADD UP? 

The months of December and January were a watershed for Digital 
Equipment Corp. After two quarters of flat sales for its 
flagship servers and workstations based on its ultra-fast Alpha 
processor, chief executive officer Bob Palmer decided on some 
dramatic action. To help stave off attacks by the systems 
vendors selling rival systems that use the Intel Pentium chip 
and run the Windows NT operating system, he cut prices on DEC's 
complete line of Alpha systems by between 13% to 47%. And in an 
effort to spur the so far slow uptake of Alpha chips by other 
systems builders, he cut the cost of what is acknowledged as 
the world's fastest commercial microprocessor in half. 
According to Computer Business Review, it is too early to say 
what effect, if any, those moves will have on customer 
enthusiasm for Alpha, but what is clear is that things have not 
been going to plan at DEC since the company closed its fiscal 
year on 30 June last year. After reporting that Alpha systems 
sales grew by 45% to around $2.4bn in fiscal 1996, the company 
has had two uncomfortable quarters in which Alpha systems 
revenue growth first slumped to 4% and then to 1% in the most 
recent quarter. And while Alpha revenues may still be creeping 
up, they are doing so only because sales of DEC's other 
computer lines are falling fast. 

                   Alpha accounts for a third  

Over the latest three months to the end of December, Alpha 
systems revenue at around $600m accounted for a third of total 
product sales, up from around a fifth at the end of fiscal 
1995. The same amount again can be added in related Alpha 
services, software, storage and other add-on items, which would 
bring total Alpha business to just over a third of the 
company's total quarterly revenues of $3.36bn. DEC maintains 
that the slower- than-expected sales had little to do with lack 
of demand. Rather it suggests that a shortage of certain 
varieties of the Alpha microprocessor held back sales worth 
$50m. However, there are other likely influences - most notably 
a change in the mix of operating system across the Alpha line. 
According to Patrick Spratt, vice-president of DEC's investor 
relations, in the first quarter, Unix-running Alpha systems 
accounted for 50% of Alpha sales, compared to 30% to 40% sold 
with VMS and less that by 20% with NT. Since then, the market's 
love affair with NT has deepened and the proportion of NT-based 
Alpha systems can only have increased. But the dynamics of the 
NT market put Alpha/NT systems in the ring with scores of 
Intel/NT systems vendors, something that dictates lower prices 
and lower margins than DEC has derived from Unix and VMS Alpha 
sales. As DEC increasingly looks to position Alpha/NT boxes as 
the superfast - and the only - mainstream alternative to 
Intel/NT - it will simply have to sell more units to hold its 
Alpha revenue stable and profitable. At the same time, there is 
some bet hedging going on. Since the close of its fiscal year, 
DEC has pulled its personal computer division out of 
loss-making activities in the home and commercial standalone 
personal computer markets and focused that salesforce on 
selling servers and networks of personal computers. In fact, 
one of the highlights of its second quarter figures was that, 
for the first time in over a year, the personal computer unit 
actually turned in a profit. That encourages DEC to believe 
that, alongside its Alpha NT engine, it can also sustain a 
strong presence in the commodity Intel/NT market - the very 
market that the Alpha group is trying to out-maneuver. 
Nevertheless, the strategic focus is on Alpha. Since its launch 
in 1992, Alpha products have brought around $12bn into DEC's 
business. DEC could not have survived without the Alpha chip 
and its systems, and some customers have been willing to pay 
well for that technological edge. But with its recent 
re-pricing, DEC is trying to kill the perception that high 
performance equates with high price. Whether that will give it 
the volume of sales that it so anxiously awaits, will only 
become apparent as customers begin to react to this twist to 
DEC's recovery strategy. 

                                  

                      Microsoft Deals Blow to Apple

              AP Online, Friday, February 07, 1997 at 12:45

      NEW YORK (AP) - Microsoft Corp. said Friday it would stop making
    its Windows NT operating system for computers based on the PowerPC
    chip, dealing the latest blow to the once-touted microprocessor.
      The PowerPC microprocessors, developed jointly by IBM Corp.,
    Motorola Inc. and Apple Computer Inc., were once pushed as an
    alternative to the dominant Intel Corp. chips that are the
    ``brains'' of most personal computers.
      But only Apple currently sells PowerPC computers in any
    substantial numbers, and last month IBM said it would stop making
    its PowerPC-Windows NT machines because of their small sales
    volume.
      Analysts said Microsoft's move was not surprising in the wake of
    IBM's decision and a recent drop in sales of Apple's computers,
    which are based on the PowerPC.
      The overwhelming majority of Microsoft's products run on Intel
    chips, and developing and supporting operating systems for
    computers based on other chips is expensive, said Brian Murphy, a
    software analyst at the Yankee Group in Boston.
      ``It makes life a lot easier for them. The more platforms they
    have to support, the more they have to spend,'' Murphy said.
      Microsoft's Windows NT is an operating system for business
    computers and networks designed to run on different chips.
    Microsoft said it will continue to make Windows NT adaptable for
    computers using Digital Equipment Corp. chips as well as Intel's
    chips.

    Companies or Securities discussed in this article:
       Symbol              Name
    NASDAQ:MSFT Microsoft Corp
    NYSE:IBM    Intl Business Machines Corp
    NYSE:MOT    Motorola Inc
    NASDAQ:AAPL Apple Computer Inc
    NASDAQ:INTC Intel Corp
    NYSE:DEC    Digital Equipment Corp

    What happens when all the computers in the world use the same chip and
    run the same OS?  Will Intel (or MS) ever be busted for monopolization?
    

Boston Globe, Business Section 2/12/97, Business Briefs

Digital[sic] restructuring costs reduced by $50m

Digital Equipment Corporation said it has reduced by about $50 million the
cost of completing a restructuring that has cut its payroll in half since
the late 1980s.  The computer maker also reported accruing a loss of about
$17 million at the end of its fiscal second quarter related to a pending 
divestment, which is expected to be completed in the current qurter,
Digital said in a regulatory filing.  The action doesn't represent "a
disposition of a significant line of business" according to the Maynard-
based company.  A Digital spokesman declined to comment.  Three months ago,
Digital said the outstanding cost of completing the resturturing would be 
$500 million to $600 million.  Howver, in its filing with the Securities 
and Exchange Commission, Digital reduced the estimate to between $450 
million and $550 million.  Digital said it will spend $325 million to $375 
million on restucturing during the rest of the fiscal year, which ends June 
1997.  It will spend $125 million to $175 million in "fiscal year 1998 and
beyond", the comany says. [Reuters]

From p. 70 of TIME mag dated Feb 17, 1997. Four stories appear on this page
under the heading BIZ WATCH. The other stories are headlined The Dow Lifts Some
Spirits, The Dollar Is Mighty Once Again, and Rock 'n' Roll Is Here to Pay.

AT DEC, SOMEONE IS BREATHING ON THE PHONE LINE

How's this for a switch? Digital Equipment Corp. is replacing computers with
humans. Digital has hired 90 people to do something computers do badly: answer
the damned phone. The company unplugged its automated system in Littleton,
Massachusetts, where potential customers inquire about products and services.
DEC is not going warm and fuzzy on us. The company made the change for the same
reason it installed the automated system in the first place: to improve
efficiency. "By firing the computer and bringing in live people to handle
customer calls, we've dramatically increased both customer satisfaction and
sales and marketing performance," says Debbie Miller, a DEC executive.

Customer satisfaction, as measured by reaching the right person, shot up from
73% to 97%. The rate of misdirected calls has fallen to just 1%. And each
caller who is misdirected now receives an apology--yes, a personal one--from
the person who did the misdirecting.

	
Subj:	Digital (NYSE:DEC) concerned about Q4 currency impact


News Alert from Reuters via Quote.com
Topic: Digital Equipment Corp
Quote.com News Item #2069582
Headline: Digital (NYSE:DEC) concerned about Q4 currency impact

======================================================================
    NEW YORK, Feb 13 (Reuter) - Digital Equipment Corp Chief
Financial Officer Vincent Mullarkey said Thursday he was
increasingly concerned about the effect of the strong dollar on
the company's fiscal fourth quarter results.
    Mullarkey told a Goldman Sachs technology conference he had
not modified his guidance about the currency impact for the
third quarter, ending in March.
    "I'm concerned more about the June quarter," he said,
although he also noted, "There will be a profit hit in the
March quarter."
    Later, a company spokesman said Digitial told analysts in a
January conference call that it expected a "bottom line impact"
of about $30 million in the third quarter due to the strong
dollar.
    Mullarkey did not specify what he thought the effect in the
fourth quarter might be.
    Roughly 60 percent of Digital's revenues are dervied from
outside the U.S.
    Mullarkey also told the conference he expects the company's
semiconductor operations to break even some time in fiscal 1998.
    Analysts have estimated the business has been losing
between $200 million and $400 million per year.
    Mullarkey said Digital's goal is to remain a captive
consumer of its own chips, but it also plans to offset some of
its manufacturing costs through sales of its Strong-Arm
microprocessor, aimed at the nascent network computer market.

 Copyright 1997, Reuters News Service

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% Subject: Digital (NYSE:DEC) concerned about Q4 currency impact

    "Digital's goal is to remain a captive consumer of its own chips"...?
    
    That may be Digital Semiconductor's goal, but that view certainly
    is NOT shared by the rest of the company.  If Digital Semiconductor
    isn't competitive, groups like the SBU and PCBU should have every
    option to use whatever is available on the market (CPUs, bridge chips,
    ethernet chips, etc) to meet their design goals.
    .02 K

	So basically what Vin is saying is that we are still robbing
	Peter to pay Paul and living paycheck to paycheck.

	At this point, I HOPE Compaq buys us. I may actually get
	a return on my stock if they do.

	disgusted,

							mike

>    "Digital's goal is to remain a captive consumer of its own chips"...?
>    
>    That may be Digital Semiconductor's goal, but that view certainly
>    is NOT shared by the rest of the company.  If Digital Semiconductor
>    isn't competitive, groups like the SBU and PCBU should have every
>    option to use whatever is available on the market (CPUs, bridge chips,
>    ethernet chips, etc) to meet their design goals.

That is definitely *NOT* Digital Semiconductor's goal.  Getting away from
depending on the SBU and PCBU is definitely part of our plan.  Our external
sales are way up compared to the increase in our internal sales.


...tom

	RE: last

	Don't you mean compared to the decrease in internal sales?

	If Samsung can price these CPU's more competitively than DS, I think the
	internal groups should have every right to bring their business outside.
	DS will still get a royalty payment.

	John

Well, apparently there already has been a decrease in
internal sales - but not due to competition.

>If Samsung can price these CPU's more competitively than DS, I think the
>internal groups should have every right to bring their business outside.
>DS will still get a royalty payment.

I agree.  Assuming DS doesn't become the Alpha division of Samsung.

...tom

    What did Mullarkey intend to say re chips ? It wasn't clear.
    
    Re commodity chips: Digital SBU +PCBU have already made the same choice
    as the open market in bridges, net chips, graphics, etc. Digital
    SemiConductor has 95% of the world's PCI-PCI bridge market. E.g.
    Motorola use them in PowerPC systems. IBM has some of the other 5%.
    Digital SemiConductor has a good proportion of the 10/100MB Ethernet
    market (nearly half the cards on the market are based on DS 2114x
    designs, most of the other half are Intel cards). SBU+PCBU already use
    the market's chosen graphics chips, or DIGITAL designs which are
    produced for us by commodity chip houses.
    
    So, I think that leaves processors. The sooner Samsung get their cheap
    Alpha designs to market, the better for ALL concerned. If that leaves
    Digital SemiConductor with only Bob's favoured "enterprise servers" as
    processor customers, that's fine by me... maybe then he'll realise that
    although enterprise servers are profitable, they have their downside
    (lack of volume).
    
    have a good weekend
    john

    re 13.345
    > What did Mullarkey intend to say re chips ? It wasn't clear
    
    ========================================================================
    The whole press report was odd.  Either the reporting was among the
    worst, or the comments were factoids without context.  What does this
    mean?:
    " Mullarkey told a Goldman Sachs technology conference he had
    not modified his guidance about the currency impact"  
                 ------------------
    What does this mean?:
    "Digital's goal is to remain a captive consumer of its own chips" mean?
    
    And this one....
        "Later, a company spokesman said Digitial told analysts in a
        ******                                                 *****
    January conference call that it expected a "bottom line impact"
    !!!!!!! ***************
    of about $30 million in the third quarter due to the strong
    dollar".  
    
    My guess is that Mr. Mullarkey got off script at the conference and
    talked about things without giving the analysts the appropriate 
    context.  Later spin control folks tried to fix it, but too late.
    
    Since this news item, the value of DEC has dropped $300 million. 
    
    

    CNN is giving a different reason for the stock price drop today:
    
                   Among the early movers, Digital Equipment
                   (DEC) dropped 1-1/8 to 34-3/8 after cutting
                   prices of its Pentium-based systems up to 19
                   percent. The cuts came in a move to outsell
                   rivals Compaq and Hewlett Packard.
    
    	Steve

    (UPDATE) Digital, Packard Bell Cut Prices On Some Computers By Up To 20%

           Dow Jones Online News, Friday, February 14, 1997 at 13:13

       MAYNARD, Mass. -(Dow Jones)- Computer manufacturers Digital Equipment
    Corp. and Packard Bell NEC, a unit of Packard Bell Electronics Inc. and
    the No. 1 supplier of home personal computers, Friday announced price
    cuts of up to 20% on certain lines of PCs.
       Digital, the nation's fourth-largest computer maker, cut U.S. prices
    by up to 19% for Pentium and Pentium Pro-based models in its Venturis
    and Celebris PC lines. The company said the products are now priced
    starting at $977 for entry-level Venturis models and $2,078 for the
    Celebris GL models.
       Despite posting slightly better-than-expected second-quarter earnings
    last month, Digital has been trying to pull itself out of a stalled
    recovery.
       Meanwhile, Packard Bell NEC announced it reduced prices on its Versa
    notebook computers by up to 20%. The new prices range from $1,499 for
    the NEC Versa 2400 and 2405 models to $1,999 for the NEC Versa 2430CD
    and 2435CD models. The previous price range was between $1,699 and
    $2,499.
       Despite its top standing, Packard Bell has been marginally
    profitable. That's because consumer PCs carry thin profit margins. Last
    June, Packard Bell Electronics announced a merger with Japan's NEC
    Corp., in which NEC gained ownership of an estimated 47% of Packard
    Bell's operations.
       It's partly because of NEC's backing that Packard Bell has the
    resources to launch such a low-priced offering. Packard Bell has tried
    to increase awareness for shoppers who are unfamiliar with computers and
    are buying them for the first time.
       Copyright (c) 1997 Dow Jones & Company, Inc.
       All Rights Reserved.

    Companies or Securities discussed in this article:
        Symbol                 Name
    NYSE:DEC       Digital Equipment Corp
    OTHER:X.PBE

        Digital Makes Aggressive Pricing Move in Commercial NT Desktop Market

                   PR Newswire, Friday, February 14, 1997 at 07:43

     Pentium, Pentium Pro, and Windows NT-based Clients Now Priced Below Compaq,
                                   Hewlett Packard

        MAYNARD, Mass., Feb. 14 /PRNewswire/ -- Digital Equipment Corporation
    (NYSE: DEC) today reduced prices up to 19 percent for Pentium and Pentium
    Pro-based models throughout its Venturis and Celebris PC lines.  The move
    reaffirms Digital's commitment to leadership in the rapidly growing Pentium
    Pro and Windows NT market.  Estimated U.S. street prices now start at $977
    for entry-level Venturis models, and $2,078 for the Celebris GL models.
    The new pricing positions the Digital desktops five-to-seven percent below
    Compaq and up to 18 percent below Hewlett Packard.
       "Digital is taking this pricing action in line with our goal to establish
    leadership in the NT client marketplace," said Jim Gargan, Digital's group
    product manager, Commercial Desktop line.  "Last quarter Digital delivered
    more than 15 percent of its desktop products with the Windows NT operating
    system factory-installed.  "This is clear evidence that our strategy --
    providing solutions to enterprise customers who broadly deploy Windows NT as
    their standard desktop operating system -- is working," he added. Prices are
    effective in the U.S. only.

         Venturis Price Reductions
         Digital delivers price/performance leadership with the Venturis product
    line.  Prices have been reduced seven to 19 percent.  The estimated street
    price for the Venturis FX with a 133 MHz Intel Pentium processor, 1.2GB EIDE
    drive and 16MB of EDO DRAM main memory is now $1149. Similarly, the Venturis
    GL equipped with a 180MHz Pentium Pro processor, 16MB of RAM and a 1.2GB
    hard drive now sells for an estimated street price of $1,799.
      "Digital has now placed Pentium Pro based systems at price points that are
    the sweet spot for corporate customers," according to Gargan.

        Celebris Price Reductions
        Digital also announced substantial price reductions to the Celebris line
   of "network-ready" systems designed to drive Windows NT into medium and large
    enterprises.  "Today we're offering enterprise customers migrating to a
    Windows NT based desktop environment the option of Pentium or Pentium Pro
    technology at unmatched prices," said Patti Foye, vice president and general
    manager for Digital's Commercial Desktop business segment.
        Celebris GL systems with a 180MHz processor, 16MB of EDO memory, 1.2GB
    EIDE hard drive, Matrox 3D graphics, CD-ROM, and integrated PCI Ethernet
    networking now sells for an estimated street price of $2,078.
        Digital Equipment Corporation is a world leader in open client/server
  solutions from personal computing to integrated worldwide information systems.
    Digital's scaleable Alpha and Intel platforms, storage, networking, software
   and service, together with industry-focused solutions from business partners,
    help organizations compete and win in today's global marketplace.
       NOTE:  Digital, the Digital logo, Celebris and Venturis are trademarks of
    Digital Equipment Corporation.  Windows NT is a registered trademark of
   Microsoft Corporation in the United States and/or other countries.  Intel and
    Pentium are registered trademarks and Pentium Pro is a trademark of
    Intel Corporation.  Please visit the Digital PC World Wide Web page
    at http://www.windows.digital.com.

    SOURCE  Digital Equipment Corporation
        -0-                             02/14/97
        /CONTACT: Jean Borgman of Shandwick Golin Harris, 617-266-8400 or Joan
    Heffernan of Digital, 508-264-7115/

    Companies or Securities discussed in this article:
       Symbol                  Name
    NYSE:DEC     Digital Equipment Corp

Date: Wednesday, February 19, 1997 
Source: Reuters 


Reuters via Individual Inc. : -- Goldman, Sachs analyst Laura Conigliaro said
she cut her earnings outlook for Digital Equipment Corp in the last two quarters
of its fiscal 1997 year due to the expected negative impact of foreign currency
translation on results. 

-- The analyst said she cut her earnings estimate for the current quarter ending
in March to $0.25 per share from $0.27 previously. She cut her estimate for the
fourth quarter ending in June to $0.77 per share from her prior $0.91 a share
view. 

-- Conigliaro said her full year estimate for Digital's fiscal 1997 is now $0.70
per share versus $0.85 previously. 

-- She maintained her market performer rating on the stock. 

-- The move follows comments by Digital Chief Financial Officer Vincent
Mullarkey at last week's Goldman, Sachs conference, in which he first raised
concerns over the impact the strong dollar would have on the company's June
quarter. 

-- Roughly 60 percent of the company's revenues come from outside the United
States. 

-- Conigliaro said Digital was the first computer maker to raise the issue of
currency impact on June quarter results. 

((-- E. Auchard, Wall Street bureau, 212-859-1736)) 

    Do these people know something more about the *future* currency
    fluctuations than we mortal know?
    
    Really, I can see how one can use the old excuse of "currency" in
    hiding behind the results for *this* quarter but it quite a leap to
    think they can do the same for the *next* quarter.
    
    If you are so sure, hedge it.
    
    - Vikas

    But didn't Bob forecast (hopefully, I'm sure) for $1.00 in profit
    this year.
    

>    Do these people know something more about the *future* currency
>    fluctuations than we mortal know?

The BBC mentioned that the US administration had "no desire to see
a weaker dollar" given its desire to have low US interest rates
in a story on the US trade deficit with Japan...

    this morning's paper also had an article about a software unit in
    Calif. that Digital is spinning off.  Sorry, can't remember the name.
    
    Mark

    
    Saw something quick on the Reuters feed. 
    
    We are spinning of the San Jose Reseach arm and calling it TRACEPOINT.
    The are going to deliver programming tools for Windows environments.
    
    Cheers,
    Lou
    

    What San Jose research center? Sorry folks, I didn't know you existed!

    It's going to be based in San Jose.  Apparently it was across
    the street from me in Palo Alto (had no clue it existed either :-)
    The Wall Street Journal says as below;  anyone know what these
    tools are?
    
    TracePoint, which will be based in San Jose, Calif., plans to unveil a
    set of development tools in the coming months known as HiProf
    that can be used by developers of programs for Microsoft Windows 95
    and Window NT operating systems to test their software for speed and
    quality, Stevens said.
    
    Digital said the technology behind the product was originally developed
    for Digital's UNIX operating platform. The product, for programs
    written in software languages C and C++, will be distributed through
    retail channels and over the Internet, Digital said.  Stevens expects
    that TracePoint will be profitable by next year.

    From http://www.pcweek.com/news/0217/20amerc.html
    
    February 20, 1997 11:00 AM ET
    Intel's 64-bit 'Merced' chip won't ship until
    1999
    By Lisa DiCarlo and Rob O'Regan
    
    
    SANTA CLARA, Calif.--Intel Corp.'s first 64-bit
    processor, code-named Merced, is now scheduled to hit
    the market sometime in 1999.
    
    Contrary to widely published reports that late 1998 was
    the target date for the processor, Intel spokeswoman
    Marion Koehler said the company has never publicly
    committed to a time frame except to say the chip would
    be released by the year 2000.
    
    The shift means that Microsoft Corp.'s 64-bit version of
    Windows NT won't appear until 1999. Microsoft and
    Intel executives said at last September's
    NetWorld+Interop show that they would synchronize the
    release of their respective 64-bit products.
    
    Merced is a high-end server processor with both CISC
    and RISC properties. Intel worked with Hewlett-Packard
    Co. on the initial design; however, Intel will be
    responsible for manufacturing, marketing and licensing.
    

    I've read it over thinking ... they must be talking about a 64bit NT
    for Merced only.

    Freudian.
    

    Now with Financial World magazine, Dorfman reports in his 3/18/97 column 
    that Joseph Harrosh bought another 3 million shares of DEC stock, raising
    his share to 4%
    
    "Whether Harrosh, who often pushes mnmgts to do something to boost the
    stock price, will press DEC's brass to do the same is anyone's guess. 
    He declined comment, but it's clear he's not sitting on $211.5 million
    of DEC stock for the heck of it."

    > So how will delayed-64bit NT hurt us?
    
    Maybe it won't.  We should be able to take advantage of 64-bit VLM
    capabiliites in the next release.  When the "64-bit version" comes
    along, it will take awhile for software to be tested "64-bit clean" and
    released on the new platforms.  Assuming all the development tools are
    in place, should be a piece of cake for DIGITAL to convince ISVs to do
    Alpha as well as Merced.
    
    Mark

    re .363
    
    I don't know about him but for the past month or two, DEC board members
    have been selling, not buying (In the Insiders trading column in Barron's). 
    I would think if they thought the price was going up they wouldn't be
    selling at ~35-38
    

    Our top VP (Bruce Claflin) said he's currently buying DEC stock.

    DIGITAL remains #4 in terms of US computer makers... Dell came
    in at "only" $2.4b in revenue (+57% vs. year ago) with $188m
    income (+170%).  Their European business still managed 34%
    growth; with Germany (+48%) and France (+62%) doing well.
    Server growth was 310% (now the #4 server supplier worldwide;
    doesn't mention who 1-2-3 is).
    K

    (UPDATE) Dean Witter Analyst Lowers Digital Equipment Earnings Estimates

           Dow Jones Online News, Tuesday, February 25, 1997 at 14:53

       NEW YORK -(Dow Jones)- Dean Witter Reynolds analyst Jay Stevens said
    he lowered Digital Equipment Corp.'s fiscal 1997 earnings estimates to
    65 cents a share from 90 cents a share.
       His fiscal 1998 earnings estimate remains unchanged at $2.25.
       He lowered this year's estimate in light of the ongoing sales-force
    reorganization and currency-translation effects that he anticipates will
    be worse than originally expected.
       For the very same reasons, Stevens said he has also lowered his
    third-quarter estimates to 24 cents a share from 33 cents a share.
       The stock retains a neutral rating from the firm.
       The company's fiscal year ends in June.
       Copyright (c) 1997 Dow Jones & Company, Inc.
       All Rights Reserved.

    Companies or Securities discussed in this article:
       Symbol                Name
    NYSE:DEC    Digital Equipment Corp

    re. .363
    
    You know as a little person in the company and as a stockholder I
    can now see the value of the T. Boone Picken's in the world. Love them
    or hate them they got companies to start realizing that company
    performance is a metric to be dealt with. 
    
    I was getting my degree in
    Economics when the LBO stuff was first getting started (Bendix/Martin
    Marrietta?) and the instructor mentioned it as handwaving inside
    companies with no long term effects on the economy. Well I for one 
    hope this Horrosh has the ability to effect the change that Gertener
    (or whatever his name is at IBM) had on IBM.
    
    Fred 

What is even more sad is the retained earnings.
for the 40 year life of this company, we have a negative retained
earnings... that is, adding up all the quarters' profits, it
comes out NEGATIVE.  note: dividends paid out does come out of RE.

i would question the amount of cash we have.

Date: Thursday, February 27, 1997 
Source: BUSINESS LINE (The Hindu) 

Digital Equipment (India): On the back of heavy trading volumes, firm price
trends have ruled the Digital stock over the last three weeks. During the last
six trading days the stock has registered a gain of Rs. 9.50 from Rs. 105.25 to
Rs. 114.75. 

Digital Equipment (India), a 51 per cent subsidiary of Digital Equipment
Corporation, US had turned in a 21 per cent growth in turnover to Rs. 124.10
crores for the period ended December 31, 1996 over the same period the previous
year. The post-tax earnings of Rs. 9.40 crores represent a 38 per cent growth
over this period. On an equity base of Rs. 32.73 crores, the earnings works out
to Rs. 5.73 per share on an annualised basis.

For full story, see
http://weblib.ljo.dec.com/1stbin/readspg.exe/FIRST/970227/0/1/20

    Under the title of "Surprise!  Surprise!  A Digital Comeback?" Rukeyser's 
    February Wall Street newsletter has a sidebar story with these highlights:
    
    "(DEC) was a conspicious loser last year, falling 43%...
    John Jones, Salomon Brothers highly ranked server/enterprise hardware
    analyst, thinks DEC is due for a rebound; he has upgraded the stock to
    a "strong buy."  He likes:
    
    	- Large Alpha servers sales trends
    	- server price cuts
    	- sales force boost to cover 2,500 accounts (has this 
    	  happened?  -KT)
    	- semiconductors and PC server business becoming profitable
    	
    Jones looks for $1.64 a share in FY97 (vs. consensus of $1.10)
    and $3.80 in FY98 (vs. $3.05).  12 mo. target: $50.
    
    

    
    Why is Jones looking for $1.64 a share, when concensus says 90 cents?
    Is he perhaps forgetting the strong dollar that will bite into our
    profits for Q3 and Q4?

One does not continue to be a highly ranked analyst by being wrong.  When you 
are in that position, you recommend DEC to your prime customers when it is at a
6 month or so low, then publish your recommendation.  If you really are a 
respected analyst, the buying by those who chase percentages will begin and
continue until reality sets in. Then you point to the $$$ your recommendation 
made when DEC tops out.  And your reputation continues.  And nobody remembers 
when you were wrong


Of course, the above scenario could never happen.  It is just my Friday morning 
cyicism. :-)

    So how does one *become* a "respected analyst"?
    

    re .376,
    
    	I'm sure there are people out there making 50% on DEC stock, once
    or twice a year. Buy at the current price of 33/34, have analyst
    recomend the stock, sell at 50. Then wait 30 days and buy at 33/34
    again because they stock don't stay at 50 long.
    
    Ron

       New core logic chip optimizes StrongARM microprocessor for PCI
                            embedded applications

                BusinessWire, Monday, March 03, 1997 at 10:26

       MAYNARD, Mass.--(BUSINESS WIRE)--March 3, 1997--

                   Enables Low-Cost/High-Performance Clients,
                             Controllers, PC Add-Ins

       Digital Equipment Corporation today announced a single-chip core
    logic device that enables the StrongARM SA-110 microprocessor to
    control popular, high-performance peripheral devices on the PCI
    (Peripheral Component Interconnect) bus.  The 21285 core logic chip
    optimizes the StrongARM SA-110 microprocessor for a wide variety of
    PCI embedded applications such as internetworking, office automation,
    storage control, telecommunications, PC add-in devices, and network
    clients.
       Also announced was a toolset to enable developers to build and
    test StrongARM PCI designs.
       "The PCI bus provides the high bandwidth -- up to 132 megabytes
    per second -- that manufacturers need to deliver high-performance
    products for data-intensive applications," said Matt Theall, PCI
    bridge product marketing manager for Digital Semiconductor, a Digital
    Equipment Corporation business.  "Our StrongARM SA-110 and 21285
    chips allow designers to take advantage of PCI speeds for demanding
    applications including network routers and switches, PBX equipment,
    cellular base stations, storage drive and RAID controllers,
    intelligent I/O cards."

    Integrates Advanced Features

       The 21285 integrates advanced features to maximize StrongARM PCI
    performance.  They include a synchronous DRAM interface for high data
    rates, flash ROM interface for device initialization, DMA and
    interrupt controllers, programmable timers, intelligent I/O (I2O)
    message unit, parallel and serial ports, and a PCI bus arbiter.  The
    21285 chip also supplies the four clocks and chip selects for the
    SDRAMs.  With its superior power efficiency, low cost, and highest
    performance among embedded processors, the StrongARM SA-110 is well
    suited to embedded PCI applications as:

    -- a network computer;
    -- a local processor on an add-in card to provide intelligent I/O
       control, such as for a RAID controller;
    -- an attached processor or accelerator on the host PCI bus.

       In each case, the 21285 core logic chip provides the memory and
    bus control, timing, PCI bus arbitration, and I2O message functions
    as needed.

    Tornado Support Announced

       Wind River Systems, Inc., announced that it will offer its
    Tornado application development system for the StrongARM SA-110
    microprocessor.  A beta version of the Tornado system to support the
    SA-110 and the 21285 core logic chip will be available in the second
    quarter of 1997, with formal release to follow in the fourth quarter.
       "The Tornado system provides embedded designers using the
    StrongARM processor the best development environment for bringing
    products to market on time and within budget," said Dave Larrimore,
    vice president of marketing at Wind River Systems.  "We are pleased
    to support the StrongARM and 21285 chips as one of the highest
    performance solutions for PCI embedded applications."

    Pricing, Availability

       The 21285 core logic chip for the StrongARM SA-110 is priced at
    $19.50 in quantities of 10,000.  Samples will be available in the
    second quarter of 1997.

    Design Toolset Offered

       Digital Semiconductor will offer a complete toolset for StrongARM
    PCI designs, comprising an evaluation module, containing the
    StrongARM SA-110 and 21285 core logic chips, and the StrongARM
    Software Developers Kit.  The kit includes a compiler, assembler,
    linker, debugger, and a functional simulator model.  The design
    database for the evaluation module, including schematics and related
    documentation, will also be available.
       The mature development environment and the number of third-party
    realtime operating systems available for StrongARM microprocessors
    will enable embedded designers to build and test hardware and
    software subsystems, run benchmarks, and port applications.
       Digital Semiconductor, a Digital Equipment Corporation business
    headquartered in Hudson, Massachusetts, designs, manufactures and
    markets industry-leading semiconductor products including Alpha
    microprocessors and PCI chips for networking, bridging, and
    multimedia, plus low-power StrongARM microprocessors under license
    from Advanced RISC Machines Ltd.  Mitsubishi Electric Corporation and
    Samsung Electronics Company Ltd. are alternate sources for Alpha
    microprocessors.  Web site: http://www.digital.com/semiconductor .
       Digital Equipment Corporation is a world leader in open
    client/server solutions from personal computing to integrated
    worldwide information systems.  DIGITAL's scalable Alpha and Intel
    platforms, storage, networking, software and services, together with
    industry-focused solutions from business partners, help organizations
    compete and win in today's global marketplace.

       Note to editors: DIGITAL, Digital Semiconductor, and the DIGITAL
    logo are trademarks of Digital Equipment Corporation.  StrongARM is a
    trademark of Advanced RISC Machines Ltd.  Tornado is a trademark of
    Wind River Systems, Inc.  Intel is a registered trademark of Intel
    Corporation.

       CONTACT: Digital Equipment Corp.
                Marianne Mills, (508) 568-5102

       KEYWORD: FN MASSACHUSETTS
       INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS

    Companies or Securities discussed in this article:
      Symbol                Name
    NYSE:DEC   Digital Equipment Corp

    Pru cuts FY97 estimate from 0.70 to 0.60 citing currency effects.

>     Pru cuts FY97 estimate from 0.70 to 0.60 citing currency effects.

	Here's the Reuters News Service report.  At least we weren't
	alone :-)


        RESEARCH ALERT-Prudential cuts (NYSE:HWP)(NYSE:DEC) EPS

                Reuters, Friday, March 07, 1997 at 10:33

        -- Prudential Securities trimmed fiscal 1997 earnings
    estimates on Hewlett-Packard Co (NYSE:HWP) and Digital Equipment
    Corp (NYSE:DEC), the office of analyst Don Young confirmed.
        -- Cut Digital estimate to $0.60 per share from $0.70,
    citing currency effects.
        -- Cut H-P estimate to $3.35 from $3.40.
        -- Additional details not immediately available.
        -- H-P fell 1-7/8 to 56 and Digital fell 1/4 to 32-5/8.

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
      Symbol              Name
    NYSE:HWP   Hewlett Packard Co
    NYSE:DEC   Digital Equipment Corp

    Block Trade - Digital Equipment (NYSE:DEC) 206,500

         Reuters, Friday, March 07, 1997 at 11:53

        at 32-1/4, down 5/8, crossed by Salomon

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
     Symbol          Name
    NYSE:DEC Digital Equipment Corp

    Re .382
    
    Funny, at exactly the same time someone bought 206,500 shares!
    
    						..... Vern.
    					(Whose glass is half full)

About .-2, somebody selling can be a bad news because the stock may not have a
real buyer; the market maker or market specialist(on NYSE) would act as a buffer
and buy those stocks (it is their job to make an orderly market) and sell them
later. The price of the stock moves based on the number of true buyers and
sellers as the market maker sees them (supply and demand), that is, if the
market maker has to buy the shares for which there is no immediate buyer, the
price would drop.
Otherwise if market maker is considered to be a buyer, the price would not move,
that is, a tick up for buying 100 shares and a tick down for selling 100 shares.

    re .384
    
    I don't get it. Are you saying someone buys the stock and then tries to
    sell it at a loss ? The market maker must have buyers there somewhere
    or he would go bust pronto, wouldn't he?
    
    ..Kevin..

> I don't get it.

The market maker has a buy price and a sell price.
The two are slightly different & the spread is one place they make money.
Commission is another.  They obviously try to not get caught holding
too many shares during a down tick & vice versa.

If a market maker buys a stock, they do not have to immediately sell it at a
loss, they can accumulate stocks as the price goes further down and sell it
later on when the price is higher up than their buy point for a profit, they
have to have significant holding capacity if they are going to make a market
(buffer). Obviously, when there are no true buyers and only sellers, they will
drop the bid price to a level comfortable to them.

    Caught the tail-end of an interview with Palmer on Moneyline with 
    Lou Dobbs this afternoon (mountain time).  Don't know if they'll show
    it in the evening...

Transcript is in HUMANE::DIGITAL 5183.5.

		Steve

          Digital (NYSE:DEC) 97, 98 EPS cut by Morgan Stanley

              Reuters, Wednesday, March 12, 1997 at 16:53

        NEW YORK, March 12 (Reuter) - Morgan Stanley analyst Steve
    Milunovich cut his fiscal 1997 and 1998 earnings estimates on
    Digital Equipment Corp -- mainly due to currency fluctuations,
    market sources said -- and he maintains his neutral rating.
        Milunovich was not immediately available for comment, but
    market sources said he cut his fiscal 1997 estimates to $0.70 a
    share from $1.00. He cut fiscal 1998 estimates to $2.50 a share
    from $3.00 a share.
        Digital shares closed off two to 30 in heavy trading.
        Market sources said that Milunovich's estimate cuts come on
    the heels of a Digital presentation at a Morgan Stanley
    technology conference this week. A Digital spokesman was not
    immediately available for comment.
        Last month, at a Goldman Sachs Technology conference,
    Digital's chief finanical officer said he was increasingly
    concerned about the effect of the stronger dollar on Digital's
    fiscal fourth quarter results. Roughly 60 percent of Digital's
    revenues come from outside the U.S.

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
      Symbol              Name
    NYSE:DEC  Digital Equipment Corp

            Digital (NYSE:DEC) Chmn optimistic about future

              Reuters, Wednesday, March 12, 1997 at 18:54

        LOS ANGELES, March 12 (Reuter) - Digital Equipment Corp.
    Chairman Robert Palmer on Wednesday said the computer company
    is healthier than it has been in many years and he is
    optimistic about the future.
        "I'm optimistic about the future of the company over the
    longer term," Palmer said at a news conference at the Spring
    Internet World conference here.
        Palmer also said the company's expected initial public
    offering of its Internet search engine AltaVista will depend
    largely on stock market conditions for Internet IPO's.
        "Our strategy would be to retain an 80 percent ownership,"
    he said.
        Palmer declined to comment on quarterly results for the
    Maynard, Mass.-based company.
        "We're in a much healthier position today than we have been
    in years," he said. "I couldn't be more optimistic, but in any
    particular quarter, anything could happen."
        According to First Call, analysts expect Digital will earn
    about $0.27 a share in its fiscal third quarter, down from
    $0.74 a year ago.
         Palmer told reporters that the company's 64-bit technology
    coupled with the growth of the Internet, gives Digital a
    competitive edge as its competitors scramble to develop their
    own 64-bit technology.
        "There is so much information on the Internet, and it's
    growing at such an exponential rate, that without 64-bit
    technology you don't have a chance.
        Digital shares closed down 2-1/8 to 29-7/8.

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
      Symbol              Name
    NYSE:DEC  Digital Equipment Corp

    Digital Equipment Chairman Robert Palmer Calls Internet The "Universal
			Computing Platform Of Choice"

	       PR Newswire, Wednesday, March 12, 1997 at 12:48

	      Presents Opening Keynote at Spring Internet World

    LOS ANGELES, March 12 /PRNewswire/ -- Staking out Digital Equipment
Corporation's (NYSE: DEC) claim on the Internet and the company's vision of
the future, Digital Chairman Robert B. Palmer today kicked off Spring Internet
World with an opening keynote focusing on the emergence of the World Wide Web
as the "universal computing platform of choice."
    In the keynote speech, Palmer mapped how today's Internet will "expand to
become one secure, scalable, reliable network accessed from anywhere, at
anytime, using any device."  He also examined the impact that the new
information superhighway will have on electronic commerce and consumers,
forecasting new business trends and opportunities, and their global
implications.
    Digital has been a pioneer in the building and use of the Internet, and is
in a unique position to help businesses of all types and sizes realize their
full potential.  Digital has a two-pronged strategy.  First, it is investing
new technology to build a Web infrastructure that provides greater capacity,
reliability and security, which are key to unlocking the global, networked
economy.  Second, it is helping leading-edge companies shape the future
Internet landscape, by preparing and empowering them to capitalize on emerging
markets.
    "As Internet standards and technology become more robust and pervasive, as
issues such as bandwidth and security are resolved, and as new kinds of
Internet access devices are developed and deployed, the Internet will
undoubtedly become the universal computing platform of choice," Palmer
predicted.
    The Digital chairman said while the Internet currently is experiencing
some growing pains due to skyrocketing use, the system will ultimately expand
to meet demand through new, cutting-edge technologies.
    "Building on the foundation we have today, the Internet will grow and
evolve to meet consumer and business demands and accommodate new uses and new
users," Palmer said. "....The next generation Internet is going to require
next generation technology, and three technology trends will provide the
support and reliability needed for exponential Internet growth:  64-bit
computing, high-speed networking, and robust Internet standards."
    Palmer said companies such as Amazon.com, Netscape and Microsoft have
turned to Digitals 64-bit Alpha systems to handle high volume, availability
and security issues.
    "Not everyone needs a 64-bit Web server today," Palmer said, "but the
trend is inevitable and the next generation 64-bit wave has already started
with the emergence of a new class of data-intensive applications that require
high availability and scalability."
    The Digital chairman said new Internet video, audio and Webcasting service
applications also demand a significant upgrade in network infrastructures.
    "To relieve the stress and boost performance, more and more companies are
installing high-bandwidth switches and placing them closer and closer to the
users," Palmer said. "In fact, many corporations have implemented switched
networks down to the workgroup level today."
    Finally, Palmer stressed that to achieve greater capacity, availability
and security, universal standards for the Internet must be developed.
    "Protocols like HTTP, HTML and TCP/IP have been critical to the Webs
success," Palmer said.  "They allow companies to achieve the ultimate promise
of open/client server computing: a seamless enterprise computing environment
that spans multiple platforms, operating systems and software.  Like the other
elements of the Web infrastructure, these protocols need to be updated.
    "Another major step forward is the next generation Internet Protocol.
This improved protocol, formally known as Ipv6, will deliver significant
improvements in security, increased address space and enhanced quality of
service -- allowing the Internet to expand even further," he said.
    As the Internet becomes a more robust platform, Palmer said it will expand
to encompass systems that are not part of the Internet today, such as
electronic data interchange and transaction processing.
    "The economics of shifting these kinds of capabilities to the Web will be
very attractive," Palmer said.  He maintained that Digitals recently announced
"Millicent" technology -- a revolutionary microcommerce system that will allow
millions of users to buy and sell small amounts of information on the Web
profitability down to fractions of a cent -- will make the Internet much more
attractive to traditional publishers, electronic publishers, self-publishers,
software publishers and service providers.
    In concluding his keynote, Palmer maintained that the development of the
Internet of the future is about more than business.  It is about transforming
society.
    "The potential for revolutionizing education, for re-invigorating our
national political dialogue, for transcending geographic and national
boundaries is almost unlimited," he said.  "But, technology alone will not
allow us to realize the potential of the Internet.  It is the application of
that technology to new, innovative and thoughtful uses that will create
economic and social value.  If knowledge is power, then the promise of the
Internet is the promise of empowerment."
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digitals scalable Alpha and Intel platforms, storage, networking, software and
services, together with industry-focused solutions from business partners,
help organizations compete and win in todays global market place.
    NOTE: Millicent, Digital and the Digital logo are trademarks of Digital
Equipment Corporation.  All other products are trademarks of their respective
owners.

SOURCE  Digital Equipment Corporation
    -0-                             03/12/97
    /CONTACT:  Dan Kaferle of Digital Equipment, 508-493-2195 or
kaferle@mail.dec.com or Krys Monaco, 617-266-8400, ext. 114 or
kmonaco@hi-tech.com/

Companies or Securities discussed in this article:
   Symbol                   Name
NYSE:DEC     Digital Equipment Corp

  MicroAge and Digital Equipment Corp. Sign Technology Services Agreement To
			Perform Final Assembly of PCs

	       PR Newswire, Wednesday, March 12, 1997 at 08:56

	   `Seamless Supply Chain' Process to improve delivery time
			and configuration flexibility

    TEMPE, Ariz., March 12 /PRNewswire/ -- MicroAge, Inc. (Nasdaq: MICA), a
global technology services provider, and Digital Equipment Corp. (NYSE: DEC),
a world leader in delivering high-performance networked business solutions,
today announced an agreement under which MicroAge will perform final assembly
of Digital personal computers at its Quality Integration Center in Tempe,
Ariz.  The "Seamless Supply Chain" (SSC) Process, often referred to in the
industry as channel assembly, reduces channel inventory levels and product
returns, improves product delivery time and provides end-users with greater
flexibility in their product configuration choices.
    SSC takes effect immediately.  Digital will deliver and maintain a supply
pipeline at the 135,000-square-foot MicroAge Quality Integration Center.
MicroAge technicians will then complete the units by adding hardware and
software components to meet the specific customer requirements.  MicroAge
technicians will also test, package and ship the final product.  This "one-
touch" integration approach enables 48-hour configure-to-order capability,
which increases customer satisfaction by shortening delivery times and making
product configurations more flexible.
    "In this era, the computer is no longer a finished good.  Customers are
increasingly demanding best-of-breed products tailored to individual
specifications - whether it be added graphics functionality, storage capacity
from a specific vendor, or simply the minimum needed to run rudimentary
applications," said Bob O'Malley, president of MicroAge, Inc.  "Our SSC
assembly process with Digital will enable us to address this demand and
ultimately provide customers with the best combined product solutions."
    "Digital sees the tremendous advantages of channel assembly and with our
groundbreaking SSC Process, we go far beyond the channel assembly programs of
other PC vendors," said Bruce Claflin, vice president and general manager of
Digital's Personal Computer Business Unit.  "The SSC Process greatly enhances
the ease of doing business with Digital.  Because Digital and MicroAge
maintain a virtual supply pipeline, MicroAge's inventory investments and
carrying costs are greatly reduced.  We fully anticipate the SSC Process will
lead to incremental growth for Digital."
    Digital selected MicroAge as its first channel assembly partner for two
reasons.  MicroAge offers an industry-leading integration facility with proven
ability to handle the volume of products and premium quality manufacturing
Digital desired.  Secondly, Digital and MicroAge have shared a long-term
successful relationship, through which the two companies have co-developed a
number of innovative distribution and reseller programs.

    MicroAge Quality Integration Center
    MicroAge's 135,000-square-foot ISO 9001-certified integration center ranks
as one of the most sophisticated of its kind.  The center employs hundreds of
highly trained professionals who configure and test more than 1,000 systems
per day.  The center has been awarded the following certifications: ISO 9001,
Federal Drug Administration, A+ service authorization, UL and CNA (Canadian
standard).  An additional quality integration center is scheduled to open in
Cincinnati, Ohio during 1997.

    Streamlining the Technology Supply Chain
    The SSC assembly process allows MicroAge and Digital to streamline the
technology supply chain by reducing the amount of finished goods in the
channel and simultaneously managing competitive market availability.  In
addition, supply chain costs are lowered because the costs for maintaining
inventories are reduced.
    "The SSC program gives Digital greater flexibility in tackling shifting
market demands and provides greater precision in predicting product supply and
availability,- said Claflin.  "It's classic just-in-time delivery - we have
the right products to sell at the right time, and customers get the products
they want, when they need them."
    MicroAge's O'Malley believes that along with electronic commerce, the
concept of channel assembly will be the most influential element to affect the
industry in years.  "Channel assembly is re-engineering the computer
distribution model by bringing the choice closer to the end-user."

    Digital Equipment Corporation
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.  More
information about Digital's personal computers is available on the World Wide
Web at www.windows.digital.com.

    MicroAge, Inc.
    MicroAge, Inc., a Fortune 500 company, is a global technology services
company, providing distributed computing solutions and ISO-9001-certified
multivendor integration services to large organizations and computer resellers
worldwide.  The company serves corporations and government agencies through
its MicroAge Infosystems Services network of branches and alliance partners
spanning 29 countries, and offers computer resellers over 20,000 products from
more than 500 suppliers backed by a suite of technical, financial,
distribution and account management services. ECadvantage, MicroAge's new
electronic commerce architecture, is utilizing the Internet to streamline the
delivery of services to its customers.  Headquartered in Tempe, Ariz., the
company's 1996 revenues exceeded $3.5 billion.  Information about MicroAge is
available on the World Wide Web at www.microage.com.

SOURCE  MicroAge Inc.
    -0-                             03/12/97
    /CONTACT:  Jay O'Callaghan of MicroAge, Inc., 602-366-7987,
jocallag@microage.com; or Andy Pool of Digital Equipment Corp., 508-264-5675,
pool@mail.dec.com; or Michelle Spolver of Miller-Shandwick Technologies,
310-822-4669, mspolver@miller.shandwick.com; or Jean Borgman of Shandwick
International, 617-266-8400, jborgman@hi-tech.com/

Companies or Securities discussed in this article:
     Symbol                  Name
NASDAQ:MICA     Microage Inc
NYSE:DEC        Digital Equipment Corp

  AltaVista Announces ABCD - The First 'Inter-Directory' Service on the Web

	       PR Newswire, Wednesday, March 12, 1997 at 14:05

       Business Card Information Provided Directly by member Companies

    MAYNARD, Mass., March 12 /PRNewswire/ -- AltaVista Internet Software,
Inc., a subsidiary of Digital Equipment Corporation, (NYSE: DEC) today
unveiled its newest free technology showcase on the World Wide Web,
ABCD -- the AltaVista Business Card Directory.  Located at
http://altavista.directory.digital.com, ABCD is the first directory service to
perform inter-directory searching, finding people within its own directory or
in partner directories, including InfoSpace, Four11 and WhoWhere.
    A reliable, master address book for the business community, ABCD listings
are updated by businesses using AltaVista Directory 97.  Accessed through a
Web browser or through the address book function of popular email programs,
ABCD consolidates the information from multiple directory services in a
simple, easy-to-use solution.  Users can instantly find people using asingle
piece of data, such as company name, title or location.
    A technology showcase for AltaVista Directory 97, ABCD is an integral part
its worldwide address book.  Companies with AltaVista Directory 97
installations can maintain links in ABCD to selected employees, uploading
information from their internal directories to the ABCD directory on the Web.
Information is accurate and up to date, and the business remains in control of
the contact data.  In addition, AltaVista will offer its Visionary Club
members the option for a free listing on ABCD.
    The announcement of ABCD is another step forward in the AltaVista business
model, which originates with state-of-the-art public Web services, and extends
to worldwide technology partnerships, businesses and private intranets. ABCD
joins the AltaVista Search service and AltaVista ForumForum as technology
showcases on the World Wide Web.
    "ABCD is a simple, fast and powerful way to provide access to information
about people," said Ilene H. Lang, president and CEO of AltaVista Internet
Software, Inc., and vice president of Digital.  "It makes external company
contact information visible to customers and partners, but it keeps the
published data under the control of the business,  making the information
timely, accurate and easily updated."
    Users access names and addresses in ABCD directly from the Web or through
the address book function of most common mail clients, including Exchange, MS
Internet Mail, cc:Mail, Netscape Communicator or Eudora.  Using the
Lightweight Directory Access Protocol (LDAP) technology, ABCD searches through
multiple directories, using any fragment of information to find the contact in
moments.  ABCD weeds out duplicates and presents the user with up to the first
25 true matches from the millions of entries in its combined directories.
    The ABCD Web site includes detailed information on how to publish contact
information on the directory.  It also includes links for downloading a 30-day
free trial or purchasing the AltaVista Directory 97 product.
    AltaVista OnSite Computing Solutions provide secure, simple and direct
access to information and people over the Internet and private intranets.
AltaVista Search, Directory, Tunnel, Firewall, Forum and Mail products give
users a competitive edge, enabling productive business to take place from
anywhere.  Further information on AltaVista OnSite Computing is available at
http://altavista.software.digital.com, or by calling 1-800-336-7890.
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.
    NOTE: Digital, the Digital logo, AltaVista and the AltaVista logo are
trademarks of Digital Equipment Corporation.

SOURCE  Digital Equipment Corporation
    -0-                             03/12/97
    /CONTACT: Chuck Malkiel of Digital, 508-486-2902 or
chuck.malkiel@altavista.digital.com, or Krys Monaco or Christina Lynch,
617-266-8400 or kmonaco@hi-tech.com or clynch@hi-tech.com/

Companies or Securities discussed in this article:
   Symbol                  Name
NYSE:DEC     Digital Equipment Corp

          Vobis (FSE:MEOG) uses DEC chip for scientific computer

                Reuters, Thursday, March 13, 1997 at 10:03

        HANOVER, Germany, March 13 (Reuter) - German computer maker
    and retailer Vobis Microcomputer AG, aiming to expand beyond
    consumer PC sales in Germany's sagging economy, said on Thursday
    it joined with Digital Equipment Corp (NYSE:DEC) to launch a new
    scientific computer.
        At the same time it pushed farther into consumer electronics
    by announcing a television that can also serve as a monitor for
    personal computers.
        The scientific machine, which is capable of generating 3-D
    graphics and other complex images used in research or motion
    picture special effects, would use the Windows NT operating
    system and DEC's Alpha 21164 chip running at 500 megahertz.
        Vobis priced the Highscreen Alpha 500 at 5,999 marks
    ($3,530) and expected to sell it to graphic artists or small
    companies that buy computers from stores like those in the
    300-location Vobis chain.
        Normally, such powerful workstations are sold by a
    manufacturer's sales force directly to large companies.
        The Alpha chip would give the computer much more power than
    PCs that use Intel Corp. (NASDAQ:INTC) processors. But it can only
    scientific programmes that are tuned for Windows NT.
        The Highscreen PC/TV has both cable TV and PC connections,
    stereo sound and a picture measuring 66 centimeters diagonally.
    The machine, due this summer for about 2,000 marks, could allow
    families to surf the Internet together or show computer games in
    large, high-quality images.
        Vobis, which gets 72 percent of its sales in its home
    market, has suffered from the weak German economy dampening
    consumer spending. The company was expected to see 1997 pretax
    profit sag slightly after stagnating for the last two years at
    about 50 million marks.
        -- Neal Boudette, Bonn Newsroom, +49-228 26097150
    ($ = 1.695 German Marks)

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
       Symbol               Name
    FSE:MEOG
    NYSE:DEC     Digital Equipment Corp
    NASDAQ:INTC  Intel Corp

                 Latin American companies favor Compaq PCs

                 Reuters, Thursday, March 13, 1997 at 14:33

        About 15 percent favored IBM machines, slightly more than
    those who preferred personal computers built by Acer Inc
    (TW:2306) and Hewlett-Packard Co (NYSE:HWP), International Data
    vice president Paul Pastrone told a technology marketing
    conference here.  Machines made by Digital Equipment Corp
    (NYSE:DEC) and Dell Computer Corp (NASDAQ:DELL) were chosen as their
    favorite by fewer executives than those picking local brands.
        Pastrone said the findings could be a boon for Compaq,
    since many leading Latin American companies are rethinking
    buying many different brands and considering purchasing all
    personal computers from single vendors.
        Although accounting for only three percent of worldwide
    information technology expenditures, Latin America last year
    showed a 20.9 percent spending increase over 1995 while the
    worldwide sector growth rate was 13.1 percent in 1996.

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
        Symbol               Name
    TW:2306       Acer, Inc.
    NYSE:HWP      Hewlett Packard Co
    NYSE:DEC      Digital Equipment Corp
    NASDAQ:DELL   Dell Computer Corp

  Digital Microsoft Alliance for Enterprise Computing Momentum Continues for
		Windows NT; Two Major Goals in Sight for 1997

		 PR Newswire, Friday, March 14, 1997 at 09:31

 Strong Customer Demand Positions Digital and Microsoft to Achieve More Than
    One Million Microsoft Exchange Seats Delivered by Digital by Mid-Year

 Microsoft Windows NT 5.0 Beta with 64-Bit Very Large Memory Support Will Be
		     Delivered on Digital Alpha This Year

    MAYNARD, Mass., March 14 /PRNewswire/ -- Digital Equipment Corporation
(NYSE: DEC) today announced the Digital Microsoft Alliance is on track to
reach two major milestones for Microsoft(R) Windows NT(R) Workstation and
Server.  In less than a year since the introduction of Microsoft Exchange
Server, Digital and Microsoft (Nasdaq: MSFT) have joined forces to win more
than 750,000 Microsoft Exchange seats with companies such as Lockheed Martin,
British Telecom, Lehman Brothers Inc., Volkswagen, and Swiss Telecom PTT.
With the release of Microsoft Exchange 5.0 on March 11, 1997, the companies
expect to have more than one million seats under contract by mid-year.
Digital also announced that the beta of Microsoft Windows NT 5.0 with 64-bit
Very Large Memory (VLM) support will be delivered on Digital Alpha this year,
giving customers significantly faster access to data.
    "Digital has been a strong supporter of Windows NT for more than five
years, and through our Alliance for Enterprise Computing has established
itself as a leading supplier of Windows-based solutions to the enterprise,"
said Bill Gates, CEO of Microsoft Corporation.  "This has been proven through
our joint engagements with customers and our joint successes with Microsoft
Exchange.  Microsoft will continue to work closely with Digital in such areas
as providing 64-bit VLM capabilities on Windows NT for Digital's Alpha
processor, which is the leading RISC platform for Microsoft Windows NT today."
    "Our strategic alliance with Microsoft has made the Windows NT environment
a robust, enterprise-level solution," said Digital Chairman Robert B. Palmer.
"As more and more companies embrace Windows-based solutions, our Alliance
continues to grow in breadth and depth, successfully delivering Windows NT
products and solutions worldwide."

    Momentum Continues
    British Telecom selected Digital and Microsoft to implement Microsoft
Exchange for more than 100,000 users and will provide a new range of corporate
intranet services to BT's corporate customers.  This solution is based on
Digital's high-performance Alpha and Intel systems; "firewalls;" and
Microsoft's suite of Internet software products including Internet Information
Server, which is incorporated in Windows NT Server; Microsoft Internet
Explorer; and Microsoft Exchange Server.
    A recent contract with Lockheed Martin calls for Digital to implement more
than 120,000 Microsoft Exchange seats in more than 50 countries.  This is one
of the largest Microsoft Exchange contracts to date.
    In addition, Digital is implementing Microsoft Exchange internally, and
has migrated more than 35,000 of its own employees on five continents.

    Test Drive Microsoft Exchange Server 5.0
    As part of the Microsoft Exchange Server 5.0 "Cyber Launch" on March 11,
1997, a Digital AlphaServer 4000 system was deployed at Microsoft to support
the Microsoft Exchange Server 5.0 Testdrive.  The Digital AlphaServer 4000
allows any user on the Internet to "test drive" the new features of Microsoft
Exchange Server, which include web browser (HTTP), POP3, and LDAP access.  To
test drive Microsoft Exchange Server 5.0 users can access the URL at:
http://www.exchangeserver.com/testdrive.

    Reduced Cost of Ownership, Other Benefits
    Digital and Microsoft also are working together to dramatically lower
total cost of ownership by delivering cost-effective Windows NT Workstation
solutions.  Digital supports the Microsoft Zero Administration Kit for Windows
NT Workstation announced on March 12, 1997.  Digital will participate in the
Microsoft Zero Administration initiative for Windows to further reduce the
end-user operation costs on Digital's Personal Workstations for Windows NT.
As the industry leader, Digital is already helping customers reduce the total
cost of ownership in the workstation area with Intel and Alpha-based Digital
Personal Workstations for Windows NT.
    Swiss Telecom, which provides more than five million Swiss users with
telephone, pager and fax service, is installing 30 Windows NT clusters to
serve as the middle tier between 15,000 PCs and its high-end mainframe
systems.  The clusters, each consisting of two Digital Prioris servers and
RAID array 310 storage, will support a broad mixture of Digital and non-
Digital equipment.
    Kvaerner, a $10 billion, Norwegian-based ship building, travel, oil
exploration and construction conglomerate, has chosen a Windows NT technology-
based intranet solution to link 40,000 of its employees in 400 offices around
the world.  Another Alpha and Intel solution, Kvaener will deploy the
Microsoft Internet software portfolio, including Microsoft Internet Explorer.
In addition to network backbone support, Digital is providing total Internet
planning, design, and implementation.
    New York Mercantile Exchange, the world's largest trading center for
petroleum products and precious metals, recently purchased 50 Digital Prioris
servers and more than 1,100 Digital Venturis PCs.  These systems, which
complement their existing Alpha servers, will provide the infrastructure for
the trading floor the quarter following the scheduled May 1997 opening of the
Exchange's new building in Manhattan.  "We've used Windows NT in development
for 18 months," said Allen Feryus, senior vice president of Information
Services and chief information officer, "and have not had a single Windows NT-
related failure, lockup, or issue.  We have every confidence in its ability to
support mission-critical applications."

    Microsoft Windows NT 5.0 Beta with 64-Bit VLM on Alpha This Year
    Digital and Microsoft are working to deliver Windows NT 5.0 with 64-bit
VLM support by the end of this year.  Customers with enterprise applications
requiring efficient access to very large databases will benefit from the
greatly increased performance of 64-bit computing.  With the growing trend
toward high-volume transaction and query-based applications, VLM is expected
to become an important technology for many of today's businesses. This
capability will be supported by the new 64-bit VLM interface being implemented
in Windows NT 5.0.
    "We are pleased," said Palmer, "that customers will first take advantage
of Windows NT with 64-bit VLM support on our industry-leading platforms."
Digital's Alpha RISC architecture already boasts a full 64-bit capability for
high-performance scalability in client/server computing across the enterprise.
With Windows NT 5.0 on Alpha, applications will be able to take advantage of
significantly faster access to data because data is mapped directly into
memory.  For example, a Digital AlphaServer 8400 system with up to 26GB of
memory running Windows NT 5.0 will be able to fully use all of this memory for
data access.  All existing Windows NT-based applications will be compatible
with Windows NT 5.0.

    Digital -- Leading Microsoft Service Advantage Partner and Solutions
Provider
    As a leading partner in the Microsoft Service Advantage program, Digital
delivers the worldwide services and support large organizations need to
successfully plan, build, and manage mission-critical systems based on
Microsoft products.
    Digital is a leading integrator and provider of management and support
services for Windows NT-based solutions.  With more than 1,300 high-level
Microsoft Certified Systems Engineers (MCSEs) and Microsoft Certified Solution
Developers (MCSDs), Digital has more than any other vendor and 10 percent of
the world's total.  To meet growing customer demand for Enterprise integration
services, Digital plans to increase this number to 2,500 by the end of 1997.
    Digital is a worldwide Microsoft Authorized Support Center (ASC) and was
selected for its ability to provide a comprehensive range of high quality,
integrated support services for organizations using Microsoft products in
distributed environments.  Microsoft recently recognized Digital as the ASC
having the most MCSEs.  In addition, Digital handles the highest support call
volume for Microsoft products with the lowest escalation rate of all Microsoft
ASCs.  To provide global support for Microsoft products, Digital also has more
than 450 service locations in more than 100 countries.  Digital consistently
achieves top ratings from analysts and customers for the level and quality of
support provided.
    Digital is one of Microsoft's largest Solution Providers.  Digital has met
the stringent requirements for Partner Level status and will be a Partner
Level Solution Provider in every major Microsoft location.  Digital's
relationship with Microsoft as a Partner Level Solution Provider extends the
reach of both companies to apply the best technology and enterprise services
to particular customer problems.
    The Digital Microsoft Alliance for Enterprise Computing (AEC) was
established in August 1995 to meet customer demand for Microsoft-based
solutions and support in enterprise-wide computing.  The Alliance combines
Microsoft client/server products with Digital's leadership in enterprise
systems, service, support and systems integration, enabling customers to
deploy business solutions on the Microsoft Windows and Windows NT operating
systems with assurance of integration into the most complex business
environments.  Users can visit the site at: http://www.alliance.digital.com.
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.
    NOTE: Digital, the Digital logo, and AlphaServer are trademarks of Digital
Equipment Corporation.  Microsoft, Windows NT, Windows and Win32 are
either registered trademarks or trademarks of Microsoft Corporation in the
United States and/or other countries.

SOURCE  Digital Equipment Corporation
    -0-                             03/14/97
    /CONTACT: Tom Madden of Digital Equipment Corporation, 508-493-9437 or
maddent@mail.dec.com, or Rich Frostig, 212-309-0624 or rfrostig@shandwick.com/

Companies or Securities discussed in this article:
     Symbol                  Name
NYSE:DEC        Digital Equipment Corp
NASDAQ:MSFT     Microsoft Corp

My kids were watching Spiderman the other day, and the villain commented to his
assistant (I think his official job title was "Henchman in Charge of Vice" or
perhaps "Vice President"):

	"All you need is a little ingenuity and 25 million dollars worth of
	Digital Equipment."

At least I *think* the capital letters were there... I *assume* he was talking
about buying stock...

:-)

						Brian

 Alpha is Launched Into The Volume Windows NT PC Market with Low Cost 21164PC
				Microprocessor

		 PR Newswire, Monday, March 17, 1997 at 08:21

      Under-$300 High-Performance Chip to Enable Alpha PCs Under $2,600

    MAYNARD, Mass., March 17 /PRNewswire/ -- Digital Equipment Corporation
(NYSE: DEC) today announced the low-cost, high-performance Alpha 21164PC
microprocessor, designed to enable Alpha PCs for less than $2,600 in the
volume Windows NT desktop market.
    The Alpha 21164PC, co-designed with Mitsubishi Electric Corporation, will
be marketed and sold by Digital Semiconductor, Mitsubishi and Samsung
Electronics.  The processor will run at 400MHz, 466MHz and 533MHz and deliver
estimated performance ranging up to 14.3 SPECint95 and 17.0 SPECfp95, twice
the performance of a comparable Pentium Pro processor.  The Alpha 21164PC-
400MHz, -466MHz, and -533MHz will be sold by Digital for $295, $395 and $495,
respectively, in quantities of 1,000.
    "This low cost, high-performance chip is a dramatic milestone for Alpha,"
said Ed Caldwell, vice president, Digital Semiconductor.  "We are delivering
on our key strategic advantages:  leadership performance, Windows
compatibility and now, competitive PC market pricing.  For PC OEMs, Alpha
provides critical differentiation in the market -- OEMs can build outstanding
graphics and multimedia systems at PC prices.  For end users, they can enjoy
the benefits of high-performance computing at PC prices."

    Windows NT Volume Opportunity
    With the growing market acceptance of the Windows NT operating system,
strong Microsoft commitment to Alpha, more than 1,800 native Alpha Windows NT
applications, and 32-bit Windows compatibility through Digital FX!32
translation technology, Alpha is well positioned to be a leading contender in
the Windows NT market.  Industry analysts view Windows NT as a volume market,
topping 40 million units by the turn of the century.
    "We are extremely pleased to bring the Alpha 21164PC to market with our
Alpha partners, Mitsubishi and Samsung.  We believe the growing Windows NT
market will provide volume opportunities for each company," said Ed Caldwell.
"This is the first Alpha product that will be marketed and sold by all three
companies."
    "Alpha is now the only alternative processor for running Windows NT, and
the 21164PC offers Alpha-class computing at PC prices," said Martin Reynolds,
vice president of technology assessment application performance at Dataquest.
"Coupled with its workable FX!32 strategy for running x86 applications and a
growing number of native Alpha applications, Alpha is a viable choice for NT
computing on the desktop."
    "The new Alpha 21164PC chip gives Digital a great opportunity to broaden
its system offerings to include the best of both RISC and CISC worlds for
Windows NT applications at competitive prices," said Jesse Lipcon, vice
president, Systems Business Unit.  "Our customers will be able to choose among
Intel and Alpha clients and servers from Digital based entirely on their
application requirements, and be assured of getting the industry's best
price/performance.  You can expect Digital to announce Alpha 21164PC-based
systems in the near future."

    Application Performance
    To extend Alpha's tremendous lead in multimedia applications, the Alpha
21164PC includes new motion video instruction (MVI) extensions.  These
instructions, added to the base Alpha architecture, accelerate the performance
of video data compression algorithms that implement MPEG-1 and MPEG-2 video
and prevailing video conferencing standards.  MVI will be offered in all
future generations of Alpha products.
    Alpha's unsurpassed processing power delivers broadcast quality and real-
time multimedia to applications at lightning speed.  These applications
include:  creating and rendering 3D images, creating and processing Web
content, video conferencing and video authoring, as well as electronic and
mechanical computer-aided design.  Alpha-based applications will provide a
higher level of performance in terms of speed and quality.  For example, 3D
images that can take two-and-a-half minutes to render on a Pentium Pro system
can be executed in less than 50 seconds on Alpha.

    Customers Announce Support
    Alpha customers announcing their intention to use the Alpha 21164PC in
future products include:  Vobis Microcomputer and Enorex Microsystems, Inc.
    "The Alpha 21164PC chip presents a great opportunity for us to complement
our Highscreen PC line with an Alpha PC for Windows NT that will offer very
good price/performance," Dr. Gert Hugler, president and CEO of Vobis
Microcomputer AG.  "Systems based on the Alpha 21164PC chip that are both
price-competitive and excellent performers in visual computing are sure to
attract much interest in European markets."
    "Enorex is aggressively bringing Alpha systems into the PC marketplace,
and the results are very positive," said Peter Dolan, Sales and Marketing
Manager, Enorex Microsystems, Inc.  "The new Alpha 21164PC chip greatly
enlarges our opportunity to put Alpha's superior performance onto PC
desktops."

    Availability
    Manufactured in a 0.35-micron process, the Alpha 21164PC contains an 8KB
data cache and a 16KB instruction cache.  It supports from 512KB to 4MB of
off-chip, level 2 cache through a high-speed interface.  The 21164PC chip is
sampling now and will be available in volume in the summer of 1997.

    New AlphaPC Motherboard
    The AlphaPC 164SX motherboard, also announced today, is a cost-focused
motherboard designed to enable production of richly featured, sub-$2,600 Alpha
PCs.  This ATX-form-factor motherboard supports the Alpha 21164PC processor
and the 21174 core logic chip.  The board, which will be available early third
quarter, features a 128-bit memory bus, 1MB of SRAM cache, six I/O slots (two
32-bit PCI, two 64-bit PCI, two ISA), and DIMM memory slots which support up
to 512 megabytes of memory.
    Digital Semiconductor, a Digital Equipment Corporation business
headquartered in Hudson, Massachusetts, designs, manufactures and markets
industry-leading semiconductor products including Alpha microprocessors and
PCI chips for networking, bridging, and multimedia, plus low-power StrongARM
microprocessors under license from Advanced RISC Machines Ltd.  Mitsubishi
Electric Corporation and Samsung Electronics Company Ltd. are alternate
sources for Alpha microprocessors.  Web site:
http://www.digital.com/semiconductor
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.
    NOTE: Digital, Digital Semiconductor, and the Digital logo are trademarks
of Digital Equipment Corporation.  Windows NT is a trademark of Microsoft
Corporation.  Intel and Pentium are registered trademarks and Pentium Pro is a
trademark of Intel Corporation.  StrongARM is a trademark of Advanced RISC
Machines Ltd.

SOURCE  Digital Equipment Corporation
    -0-                      3/17/97
    /CONTACT: Marianne Mills, 508-568-5102 or Lisa Lipson, 508-568-4352, both
of Digital Equipment/

Companies or Securities discussed in this article:
   Symbol                   Name
NYSE:DEC     Digital Equipment Corp

       Microcom and DIGITAL Partner to Deliver Remote Access Solutions

		 PR Newswire, Monday, March 17, 1997 at 09:29

	   New offering provides customers with flexible migration
			  to high-speed technologies

    NORWOOD, Mass., March 17 /PRNewswire/ -- Microcom(R) Inc. (Nasdaq: MNPI)
and Digital Equipment Corporation (NYSE: DEC) today announced the newest
product resulting from their technical partnership, the DECserver 900MC remote
access solution.  The DECserver 900MC integrates Microcom V.34 modems with
Microcom MODEMWARE(TM) into the popular DECserver platform to offer businesses
a high-performance, cost effective way for workers at remote sites to dial in
to a central office over public telephone networks.  Customers can combine the
DECserver 900MC with Microcom's Digital-branded ISPorte rackmount modem
solution, and client modems to create a tightly integrated remote access
environment.
    Designed for medium and small sites, the DECserver 900MC provides 8-ports,
each of which supports speeds up to 33.6 Kbps.  The integration of Microcom's
V.34 modems into the DECserver 900MC gives customers a highly reliable
platform that monitors and adjusts to the telephone lines to ensure top
performance.
    "Over one million DECserver products are installed in customer sites
worldwide," said Jon Lewandowski, DECserver product manager for DIGITAL's
Network Product Business.  "The DECserver 900MC gives these businesses and
others looking for a complete  remote access solution a simple, flexible way
to add support for more workers dialing in from remote sites, or to migrate
users to faster technology.  Microcom's modems offer the proven performance
and reliability customers need as they increasingly rely on remote access
solutions as part of their total computing environment."
    Customers can integrate the DECserver 900MC into their network environment
as either a standalone server with integrated modems or as a module for their
DEChub 900 MultiSwitch systems.  Either way, the DECserver Network Access
Software (DNAS) provides excellent security and management features, including
the ability to update modems in unmanned sites.
    The new product also includes: CD-ROM media kits and licenses for
DECserver Network Access Software Version 2.1, Digital Remote Access Security
V1.0, Access Server Manager (ASM) and pre-loaded Microcom MODEMWARE.
Documentation is integrated into a Network Product Information Library CD-ROM.
   "We have been working closely with DIGITAL to develop and deliver a market-
leading remote access solution with superior integrated modem technology, and
client modems that have been rigorously tested for optimum connectivity with
the DIGITAL servers," said Lew Bergins, Microcom's president and CEO. "The
result is the DECserver 900MC with Microcom MODEMWARE, and the family of
DIGITAL-branded Microcom products: the DeskPorte(TM), TravelCard(TM), and
ISPorte(TM) for DIGITAL."
    The DECserver 900MC is the first DIGITAL/Microcom product available since
the two companies announced a technology agreement in the fall to incorporate
MODEMWARE into DIGITAL's DECserver line of remote access servers.  In
November, an extension of that agreement was signed to include manufacturing,
marketing, and distributing DIGITAL-branded Microcom modems: the DeskPorte
for DIGITAL, external modem, the TravelCard for DIGITAL, PC card modem, and
the ISPorte  for DIGITAL, high-density rackmount modem for central sites.
All of the modems have been tested for optimal connectivity with DIGITAL's
robust family of remote access servers.
    Microcom's custom modems deliver outstanding performance in a modular
design that is ideal for embedded system applications like the DECserver
900MC.  Microcom has spent over 1,000 engineering years developing its
MODEMWARE,  the robust, carrier-certified, modem and management software which
optimizes remote connectivity to ensure the best performance in the most
demanding environments.  The result is faster, more reliable connectivity to
more modem brands.  Microcom MODEMWARE is used by Internet service providers,
major telephone companies, corporations, universities, and government agencies
worldwide.

    Pricing and Availability
    The DECsercer 900MC is currently available and has a list price of $5,900.

    About Digital Equipment Corporation
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace. Background
information on Digital's Network Product Business is available on the World
Wide Web at http://www.networks.digital.com.

    About Microcom
    Microcom is a worldwide leader in providing central site and remote access
solutions to OEMs, Internet service providers, regional bell operating
companies, corporations, universities and individual mobile PC users.  The
Company's products enable users to access and communicate with corporate LANs,
the Internet, intranets, and online services from remote locations.  Products
and technologies offered by Microcom include modems, central site systems, OEM
solutions, and network security, network management, remote access and remote
control software.  Microcom can be reached on the World Wide Web at
http://www.microcom.com or via our toll free number at (800) 822-8224.
    NOTE: Microcom is a registered trademark and ISPorte, DeskPorte,
TravelCard, and MODEMWARE are trademarks of Microcom Systems Inc.  All other
trademarks are property of their respective holders.

SOURCE  Microcom Inc.
    -0-                          3/17/97
    /CONTACT:  Traci Massaro of Microcom, Inc., 617-551-4823 or
tmassaro@smtp.microcom.com, or Linda Pugliano of Digital Equipment
Corporation, 508-486-6617 or pugliano@mail.dec.com/

Companies or Securities discussed in this article:
     Symbol                  Name
NASDAQ:MNPI     Microcom Inc
NYSE:DEC        Digital Equipment Corp

    Vobis, Europe's largest PC maker, selects Alpha for high-performance
                                     PCs

                BusinessWire, Monday, March 17, 1997 at 10:30

       MAYNARD, Mass.--(BUSINESS WIRE)--March 17, 1997--

       New Highscreen Alpha 5000 Sells for $3,500 US (DM 5999)

       Digital Equipment Corporation today announced that the Alpha
    21164 chip, the world's fastest microprocessor, is at the heart of
    a new personal workstation introduced today by Vobis Microcomputer
    AG of Wurselen, Germany.
       Vobis is Europe's largest PC retailer, specializing in systems
    for small businesses, home offices, and consumers.  Vobis products
    are distributed through more than 1,000 retail outlets and
    superstores in Germany and in wholly owned outlets in 10 other
    European countries.
       The Highscreen Alpha 5000 business computer from Vobis uses the
    Alpha 21164-500MHz chip from Digital Semiconductor, a Digital
    Equipment Corporation business.  Along with the Windows NT 4.0
    operating system, the configuration includes 64MB of memory, 4GB hard
    disk, 4MB graphics card, and 8X CD-ROM with sound card for
    multimedia.
       Price for the Highscreen Alpha 5000 computer is $3,500 US (DM
    5999).  Vobis will begin deliveries in the spring.
       At CeBIT, Dr. Gert Hugler, president and CEO of Vobis
    Microcomputer AG, said, "It's a great opportunity to be working with
    Digital Semiconductor.  We chose their Alpha 21164 microprocessor,
    the world's most powerful RISC processor running Windows NT, to power
    our just-announced Highscreen Alpha 5000.  The Alpha 21164
    microprocessor's exceptional price and performance will help launch
    Vobis into the enterprise desktop market."
       "We are very pleased that Vobis has chosen Alpha for its latest,
    high-performance personal computer," said William N. Johnson, vice
    president, Business Segments, at Digital Semiconductor.  "Working
    with Vobis will enable us to broaden Alpha's market presence in
    growing markets."
       Digital Semiconductor, a Digital Equipment Corporation business
    headquartered in Hudson, Massachusetts, designs, manufactures and
    markets industry-leading semiconductor products including Alpha
    microprocessors and PCI chips for networking, bridging, and
    multimedia, plus low-power StrongARM microprocessors under license
    from Advanced RISC Machines Ltd.  Mitsubishi Electric Corporation and
    Samsung Electronics Company Ltd. are alternate sources for Alpha
    microprocessors.  Web site: http://www.digital.com/semiconductor
       Digital Equipment Corporation is a world leader in open client/
    server solutions from personal computing to integrated worldwide
    information systems.  Digital's scalable Alpha and Intel platforms,
    storage, networking, software and services, together with industry-
    focused solutions from business partners, help organizations compete
    and win in today's global marketplace.

       Note to Editors: Digital, Digital Semiconductor, and the Digital
    logo are trademarks of Digital Equipment Corporation.  Vobis and
    Highscreen are trademarks of Vobis Microcomputer AG.  Windows is a
    registered trademark and Windows NT is a trademark of Microsoft
    Corporation.  StrongARM is a trademark of Advanced RISC Machines Ltd.
    Intel is a registered trademark of Intel Corporation.


       CONTACT: Digital Equipment Corporation
                Marianne Mills
                508/568-5102

       KEYWORD: MASSACHUSETTS
       INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS

    Companies or Securities discussed in this article:
      Symbol                Name
    NYSE:DEC   Digital Equipment Corp

    
    re .- a few
    
    It looks like WS is a little nervous ... I bet INTEL isn't
    
        PALO ALTO, Calif., March 17 (Reuter) - Shares of Intel
    Corp. slumped in heavy volume at midday on concerns over
    rivals' competitive products and the overall level of stock
    market valuations, analysts said.
        By early afternoon, the share had tumbled as much as six
    points to 131-7/8 as the stock led the Nasdaq most actives list
    with volume topping 11 million shares.
        Earlier, Maynard, Mass.-based Digital Equipment Corp
    (NYSE:DEC) said it will offer low-cost versions of its Alpha chip
    designed to run on high-end personal computers that it said
    would outperform Intel's top-end Pentium Pro processors.
    

   Digital (NYSE:DEC) says has injuction against Altavista

	  Reuters, Tuesday, March 18, 1997 at 15:23

    NEW YORK, March 18 (Reuter) - Digital Equipment Corp on
Tuesday said it has obtained a preliminary injunction in its
trademark infringement suit against Altavista Technology Inc,
or ATI, of Campbell, Calif.
    U.S. District Court for the District of Massachusetts
ordered ATI not to use Digital's trademark in a way that
creates the false impression that ATI's Web site is Digital's
AltaVista Search Service, Digital said.
    Judge Nancy Gertner's ruling requires ATI to prominently
display a disclaimer on its Web pages stating non-affiliation
with Digital.
    Digital said it purchased ATI's rights to the AltaVista
trademark in March 1996, then licensed very limited and
specific uses of it back to ATI.
    Digital sued ATI in October 1996 for breach of trademark
licensing agreement, trademark and servicemark infringement,
unfair competition, and trademark dilution.

 Copyright 1997, Reuters News Service

Companies or Securities discussed in this article:
  Symbol             Name
NYSE:DEC  Digital Equipment Corp

	    Digital Wins Injunction Protecting AltaVista Trademark

		PR Newswire, Tuesday, March 18, 1997 at 11:15

       Decision on AltaVista Internet Search Service Upholds Trademarks
			      on World Wide Web

    MAYNARD, Mass., March 18 /PRNewswire/ -- Digital Equipment Corporation
(NYSE:DEC) today announced it has obtained a preliminary injunction in its
AltaVista trademark infringement suit against Altavista Technology Inc. (ATI)
of Campbell, Calif.
    The United States District Court for the District of Massachusetts ordered
ATI not to use Digital's trademark "in a way that creates the false impression
that ATI's Web site is Digital's AltaVista Search Service."  Judge Nancy
Gertner's ruling requires ATI to prominently display the following disclaimer
on every page of its Web site:

    Altavista Technology, Inc. is not affiliated with Digital Equipment
    Corporation, AltaVista Internet Software, Inc. or the AltaVista Search
    Service.  The AltaVista Internet Search Service may be found at
    http://altavista.digital.com

    Digital bought ATI's rights to the AltaVista trademark in March 1996.  At
that time, Digital's AltaVista Search Service was already immensely popular --
receiving four million user "hits" or information requests per day.  Today it
handles more than 30 million hits per weekday.
    When Digital bought ATI's rights, Digital licensed back to ATI two limited
uses of the AltaVista trademark: as part of ATI's full corporate name,
Altavista Technology, Inc., and in its Web site address "www.altavista.com."
The license agreement prohibits ATI from using "AltaVista" as the name of a
product or service offering.
    Digital sued ATI in October 1996 for breach of trademark licensing
agreement, trademark and servicemark infringement, unfair competition, and
trademark dilution.  Prior to taking legal action, Digital repeatedly
requested that ATI cease its infringing conduct and comply with its license
agreement.
    Judge Gertner's ruling found that by May of 1996, "ATI dramatically
changed the appearance of its Web site, moving it markedly closer to the
appearance of Digital's AltaVista Web site....In short, a visitor to ATI's
site could easily have the impression that they were actually at Digital's
AltaVista site."
    Further, the ruling found that "By October 28, 1996, ATI's Web site was
designed to look, feel and function very much like Digital's AltaVista Web
site.  At the same time, ATI derived revenues from the site and its ties to
Digital's AltaVista.  It displayed banner ads and solicited other advertisers,
who could get information about how they, too, could reach millions of users
everyday by advertising on ATI's Web site."
    The Court's ruling also prohibits ATI from:

    -- Using the AltaVista trademark or service mark to identify any product
       or service offering, including but not limited to software products and
       advertising services.
    -- Linking its Web page to Digital's AltaVista Search Service in a way
       that creates the false impression that ATI's Web site is Digital's
       AltaVista Search service.
    -- Infringing or diluting in any manner the AltaVista mark or making any
       unauthorized use of the AltaVista mark.

    AltaVista OnSite Computing Solutions provide secure, simple and direct
access to information and people over the Internet and private intranets.
AltaVista Search, Directory, Tunnel, Firewall, Forum and Mail products give
users a competitive edge, enabling productive business to take place from
anywhere.  Further information on AltaVista OnSite Computing is available at
http://altavista.software.digital.com, or by calling 1-800-336-7890.
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.
    NOTE: AltaVista, Digital and the Digital logo are trademarks of Digital
Equipment Corporation.

SOURCE  Digital Equipment Corporation
    -0-                      3/18/97
    /CONTACT: Patrick Ward, 508-493-9441 or wardp@mail.dec.com or Juleigh
Furlong, 714-261-4520 or julie.furlong@ivo.mts.dec.com, both of Digital
Equipment/

Companies or Securities discussed in this article:
   Symbol                  Name
NYSE:DEC     Digital Equipment Corp

    
    
    I say DEC get agressive and FIGHT BACK ???
    I thought DEC had relationships with ORACLE and MSFT exclusively ???
    
    HWP getting cozy with BOTH ORACLE and MSFT!!!  (see below)
    
    _____Microsoft and Hewlett-Packard Glad-Hand Over NT_____
    Hewlett-Packard chairman Lew Platt and Microsoft CEO Bill
    Gates will shake hands over NT today at HP's Palo Alto,
    Calif. headquarters. The mutual back-slapping will serve 
    to demonstrate an expanded relationship in which HP will
    increase its commitment to Windows NT, including enhancing 
    both its service offerings as well as its systems management 
    products to better support NT and other Microsoft products 
    in the enterprise.
    
    Microsoft is expected to announce that it will use HP 
    technology in its upcoming products, as well as to reiterate 
    earlier statements that NT will support the jointly developed 
    HP/Intel "Merced" 64-bit processor when it becomes available 
    in 1998. HP may also demonstrate the first of its Network 
    PCs or NetPCs at today's event. --Stewart Johnston
    
    -----------------------------------------------------------
    
    _____Oracle and HP Cozy Up over Web Server, Unix_____
    Hewlett-Packard and Oracle are getting cozier. The companies 
    announced yesterday that HP plans to begin shipping a version 
    of Oracle's Web Application Server 3.0 with all of HP's 
    Unix-based servers. Oracle, in turn, is making HP's version 
    of Unix, HP-UX, a primary development platform for both Web 
    Application Server and Oracle8, an upgrade to Oracle's 
    database-management system due in June.
    
    The distribution deal calls for HP to make Web Application 
    Server 3.0, Standard Edition, available on its Web site in 
    May and to begin shipping the software on CD-ROM with all 
    HP-UX-based HP 9000 servers in the third quarter. What 
    distinguishes Oracle's Web Application Server 3.0 from 
    other Web servers is its level of support for transaction 
    processing, says Carol Mills, general manager of HP's 
    Enterprise Systems Division. "Oracle is establishing a new 
    category of product here--true large-scale transactions over 
    the Internet," says Mills. "It's a unique set of capabilities."
    

    >> HP plans to begin shipping a version
    >>    of Oracle's Web Application Server 3.0
    
    
    We've been shipping Netscape with our UNIX for some time now. I believe
    anyone with Digital UNIX can download it for no cost. See, and tell
    your customers:
    
    http://www.unix.digital.com/new/index.html
    
    Greg

    I never thought we had exclusive deals with Microsoft. In fact, it would
    be foolish by both Oracle and Microsoft to only hang out with their old,
    broke and misguided uncle.

    The important thing for us is if we will continue to be able to achieve
    our goals within the alliances we have made. This just means that we will
    have to work harder to retain interest from Oracle and Microsoft, but if
    we do it right we can still come out ahead of HP.

    It is a fact that we are ahead of HP when it comes to 64 bit computing. HP
    can do what they want, but they do not have any 64 bit machines and will
    not for some time. As far as I know we are also quite ahead in having
    bigger machines (non Intel) running NT. While not impossible, I doubt HP
    would attempt to bring out NT on their PA machines because they are
    supposedly at the end of their lifespan.

    HP supposedly have some decent high end UNIX machines too. I think our
    biggest risk right now is losing out to HP at Oracle in the database
    area. We need to focus on areas of strength. Keep working the NC stuff
    with Oracle and 64bit NT with Microsoft.
    
    Cheers,

    >Per

             M'bishi Elec, 2 others to launch 64-bit chip-paper

                 Reuters, Tuesday, March 18, 1997 at 19:18

        TOKYO, March 19 (Reuter) - Japan's Mitsubishi Electric Corp
    (TOKYO:6503), South Korea's Samsung Electronics Co Ltd (KOREA:64050)
    and Digital Equipment Corp (NYSE:DEC) of the United States will
    jointly produce and market a new 64-bit microprocessor to
    compete against Intel Corp's (NASDAQ:INTC) Pentium chip, a Japanese
    business daily reported on Wednesday.
        The companies will start shipping samples of the new chip
    to computer makers in June, the Nihon Keizai Shimbun said.
        The chip is compatible with Microsoft Corp's (NASDAQ:MSFT)
    Windows NT operating system, the paper said.
        A spokesman for Mitsubishi Electric was not immediately
    available to comment on the report.

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
       Symbol               Name
    TOKYO:6503   Mitsubishi Electric Corp.
    KOREA:64050
    NYSE:DEC     Digital Equipment Corp
    NASDAQ:INTC  Intel Corp
    NASDAQ:MSFT  Microsoft Corp

 Digital Redefines Value and Performance for Mobile Computing With New HiNote
			   VP 500 Series Notebooks

	       PR Newswire, Wednesday, March 19, 1997 at 12:12

  First to Offer Windows NT 4.0-Optimized Models Across Full Line of Mobile
			       Client Solutions

    MAYNARD, Mass., March 19 /PRNewswire/ -- Digital Equipment Corporation
(NYSE:DEC) furthered its lead in the market for value-priced notebooks today
with the latest additions to its award-winning HiNote VP 500 series of
enterprise mobile clients.  Reinforcing the HiNote VP 500 family's competitive
leadership in performance, modularity and connectivity at aggressive prices,
Digital introduced three new models to the line, with prices starting at U.S.
$2,499 (estimated selling price).
    The new HiNote VP 560, 565 and 575 notebooks have 12.1-inch displays
standard and include the industry's first removable combination
CD-ROM/diskette drive, which enables simultaneous use of each media.  To
better meet the needs of enterprise customers, the new systems include models
with Windows NT Workstation 4.0 pre-loaded and pre-configured with power
management and plug-and-play features, making Digital the first to offer
Windows NT-optimized notebooks across its full mobile lineup.
    "The new HiNote VP 500 series notebooks further demonstrate Digital's
commitment to leadership in mobile client computing by offering the latest
technology and best overall value for mobile professionals in a Windows-based
enterprise," said Howard Elias, vice president of worldwide business segments
in Digital's Personal Computer Business Unit.  "With the power of a desktop
computer and the versatility of optimized, Windows NT-ready mobile clients,
the new HiNote VP 500 models will continue to lead the market in terms of
features, performance and quality at highly competitive prices."
    The new HiNote VP 560, 565 and 575 feature the latest in display,
processor, graphics and removable media technologies available for notebook
computing and are the ideal choice for budget-minded users requiring
enterprise-ready mobile client solutions.  The systems are targeted at
customers ranging from price-conscious, small-office users who need maximum
performance, reliability and ease of use within specific budget constraints,
to large-business mobile professionals requiring manageability,
communications, network connectivity and support for mobile Windows NT.

    Advanced Features Redefine Notebook Value and Performance
    Building on the best-in-class features and performance of the HiNote VP
500 series, the new HiNote VP notebooks continue Digital's success in bringing
high-performance mobile computing into the mainstream.  The high-end HiNote VP
575 model shattered the WinStone 97 benchmark performance test with an overall
score of 38, nearly 12 percent faster than its nearest competitor -- the
Toshiba Tecra 740CDT -- and more than 26 percent faster than the TI TravelMate
6160.

    Standard 12.1-inch Displays
    Among the first value-line product set to standardize on large displays,
each of the new HiNote VP 500 models features a 12.1-inch SVGA (Super Video
Graphics Array) color display -- with a mix of dual-scan and active-matrix
display technologies to meet a range ofprice/performance requirements.  The
HiNote VP 560, 565 and 575 models also include 128-bit accelerated graphics
with MPEG (Motion Pictures Expert Group) support for rich, full-screen/full-
motionvideo playback that brings multimedia presentations to life.

    First Removable CD-ROM/Diskette "Combo" Drive
    Advanced technologies for the new HiNote VP 500 models include the
industry's first fully integrated, removable combination CD-ROM/diskette drive
in the system's modular expansion bay.  The combo drive features both a 12X-
speed CD-ROM and a diskette drive, eliminating the need to swap between the
two components or the requirement for external attachments to support their
simultaneous use.  The system's modular expansion bay also supports an
optional second battery, which is interchangeable with the CD-ROM/diskette
combo drive.
    The new HiNote VP 500 systems include other advanced features typically
found only on higher-end, higher-priced notebook solutions, including 32-bit-
enhanced CardBus support for faster throughput of PC Card communications;
zoomed video for high-speed graphics performance in full-motion video
applications; and fast infrared for quicker data transfer rates when using
wireless computing devices.

    Long Battery Life Enables "All-Day" Computing
    The HiNote VP 500 series notebooks deliver long battery life through the
use of leading-edge battery technologies.  An "advanced metal" smart battery
using Enhanced NiMH (Nickel Metal Hydride) technology comes standard with the
HiNote VP 560 and 565, and aLithium-Ion (LiIon) Smart battery comes standard
with the HiNote VP 575.  A second, dual-battery option using LiIon Smart
battery technology can be placed in the system's modular expansion bay,
delivering a full workday's run-time of up to 10 hours for all models.

    Flexible Range of Configurations
    The HiNote VP 560 and 565 are based on 133-megahertz (MHz) Pentium
processors, and the HiNote VP 575 includes a 166MHz Pentium processor with
Intel's recently announced MMX technology.  Each model is complemented by a
PCI (Peripheral Component Interconnect) bus, EDO (Extended Data Out) memory
and external cache for speedy system performance.  The new HiNote VP 500
notebooks also include a minimum of 16MB of system memory to better support
customer requirements for memory-intensive applications, expandable up to 80MB
of total system memory.  Removable hard drives support up to 1.44- or 2.16-
gigabytes of storage capacity for the HiNote VP 560/565 and 575, respectively.

    Unrivaled Support for Mobile Windows NT
    The new HiNote VP 500 series notebooks come pre-loaded with Windows 95 or
Windows NT Workstation 4.0, reinforcing Digital's leadership in bringing
Windows NT-based computing across the enterprise and into the mobile computing
environment.
    With the addition of pre-loaded, pre-configured Windows NT-based models in
the HiNote VP 500 series, Digital becomes the first vendor in the industry to
offer Windows NT-optimized notebooks with enhanced power management and plug-
and-play-like functionality across its full line of mobile client solutions.
    Digital's Windows NT-optimized notebook configurations make Windows NT-
based computing practical for the mobile user.  Digital-developed power
management features not only deliver extended battery life under Windows NT
4.0, but also provide power management and battery life similar to that of
Windows 95.  Additional usability features include a battery gauge for
monitoring system run-time between charges.  Plug-and-play functionality
provideshot-docking support for the system's modular components and
accessories -- such as the optional second battery or port replicators -- as
well as hot insertion and removal of a variety of popular PC Card peripherals,
such as Digital's Roam About wireless network card.
    The new HiNote VP 500 series notebooks are also designed to keep mobile
users connected to the enterprise with pre-loaded Digital ClientWORKS network
management software, DMI (Desktop Management Interface) support and a port
replicator option with built-in network connectivity.

    Pricing and Availability
    The HiNote VP 560, 565 and 575 are available immediately with estimated
selling prices ranging from U.S. $2,499 to $4,499.  Digital's channel partners
and resellers will determine actual selling prices to customers.  Models with
Windows NT 4.0 Workstation will be priced at $200 more and will begin shipping
next month.  A broad selection of optional system accessories and upgrade kits
are available, including the Smart LiIon second battery for U.S. $279 and the
port replicator with integrated Ethernet networking for U.S. $319.
    Digital's solutions are the leading choice for customers deploying
Windows-based computing across the enterprise.  The company offers enterprise
customers superior value with client/server solutions optimized for Windows
and Windows NT environments, global services and support, and solutions
delivered through alliances with industry leaders.
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.
    NOTE:  Digital, the Digital logo, HiNote, and ClientWORKS
are trademarks of Digital Equipment Corporation.  Intel and Pentium are
registered trademarks of Intel Corporation.  Windows and Windows NT are
either registered trademarks or trademarks of Microsoft Corporation in the
United States and/or other countries.

SOURCE  Digital Equipment Corporation
    -0-                        3/19/97
    /CONTACT:  Lisa Rohlf of Digital, 508-264-7977 or rohlf@mail.dec.com or
Wendy Pickering, 617-266-8400 or wpickering@hi-tech.com/

Companies or Securities discussed in this article:
   Symbol                   Name
NYSE:DEC     Digital Equipment Corp

    Is the chip in .407 an Alpha, or something new?

><<< Note 13.408 by vaxcpu.zko.dec.com::michaud "Jeff Michaud - ObjectBroker" >>>
>
...


>    NOTE:  Digital, the Digital logo, HiNote, and ClientWORKS
>are trademarks of Digital Equipment Corporation.  

(and frequent usages of "Digital" or "Digital's" throughout the PR release in
.408)

Cutting to the important stuff, it saddens me greatly to see that our own PR
department (if indeed that is who issued this press release) hasn't picked up
on the Corporate Branding standards.

>    Is the chip in .407 an Alpha, or something new?

Yes - it's a modified ev56 that doesn't have a 2nd level cache to reduce cost,
referred to internally as pca56, and externally as 21164PC.

HITECH: Digital Effects Artist Breaks Out Of The Mold

By Katharine Stalter 

HOLLYWOOD (Variety) - Sometimes you have to get away to gain a
new perspective on a familiar situation.  That's exactly what
happened to Tony Gardner, creature effects artist and owner of 
Alterian Studios, a Monrovia, Calif. company completing animatronics
work on MGM-UA's "Warriors of Virtue," slated for a May 2 release. 

Gardner spent the first half of 1996 in China, working on shots
for the film and creating seven animatronic characters. "When I
came back,I realized the problem of 'disappearing' like that for
a long time: people in the industry tend to forget who you are.
But in talking to people, to remind them what we did, I thought:
There's no reason we couldn't do all a film's visual effects work
under one roof." 

Alterian opened its digital effects studio earlier this year. By
keeping the staff small, Gardner said, and by keeping down
equipment costs, Alterian can price its effects services to
compete with bigger houses. 

Gardner has brought in Elliot Worman, former head of digital
effects at Encore Video, to run the new department.  Worman's 
recent credits include building virtual sets for the upcoming
"Casper II -- The Beginning" and the Borg spaceship for
"Star Trek: First Contact." 

The "Star Trek" project was done using personal computers from
Digital Equipment Corp. The same line of Alpha computers are 
being used at Alterian. Worman and Gardner emphasize the DEC gear's
role in holding costs down.  If the studio were to purchase a pricey line
of Silicon Graphics equipment, said Worman, "Alterian wouldn't
be able to crank out  high-end visuals any faster." 

Gardner made a name for himself doing animatronics, makeup and
miniatures for features, including Darkman, The Doors, Forrest Gump,
The Addams Family, Speed, Ace Ventura: When Nature Calls, The Rock
and others. 

In addition to the DEC computers, the studio is outfitted with 
several other desktop systems, a Pentium file server and a Pentium 
Render server. The company's primary software is Ligthwave 3D. 

Gardner said the move to open a digital studio seemed like the 
next step in our  evolution. "We'd been doing digital tests on 
our own, then passing the tests off to another house, who would
do the work. After a while, we decided to make the investment
and handle the digital work ourselves." 

The process seems to be working so far. Clients who approach 
Alterian about more traditional effects work are also bringing 
their digital compositing jobs to the company. That's what
happened with the upcoming Mortal Kombat 2. The producers came 
to Alterian with miniatures work. After seeing the new digital
capabilities, they will now use Alterian to composite the
miniatures with backgrounds. 

Even though bigger effects houses have had difficulty making 
money on digital effects work, Gardner is confident he can 
sidestep the problems of his predecessors. 

"A bigger company has trouble making money with digital because 
they don't control their overhead," he contended.  "They may have
50,000 square feet of space, and 50 people in the digital department.
We have 14 workstations, and if we need to expand, we won't purchase
$3 million worth of equipment. We'll rent the equipment and 
bring people in as we need them. 

"That's how I've worked in the makeup arena for so long," he added.
"When I started Alterian, I had 300 square feet and one full-time
employee. My goal continues to be: remain organized and not take 
on more than I can handle." 

Reuters/Variety 

         EDS (NYSE:EDS) wins Czech defence deal, Unisys to appeal

                Reuters, Thursday, March 20, 1997 at 15:40

        By Jan Lopatka
        PRAGUE, March 20 (Reuter) - A U.S.-led consortium won a
    controversial Czech Defence Ministry tender on Thursday, but its
    American rival Unisys Corp (NYSE:UIS) immediately said it would
    appeal the decision.
        Defence Minister Miloslav Vyborny announced that the
    consortium led by Electronic Data Systems Corp (NYSE:EDS) and
    Digital Equipment Corp (NYSE:DEC) had won a 1.3 billion crown ($44
    million) information systems contract.
        The battle to supply the system, which will help Czech armed
    forces to become compatible with the NATO alliance, has been
    long and bitter.
        Unisys won an original four billion crown supply tender last
    August. But the tender was later cancelled when Czech
    competition authorities found irregularities in the process.
        Vyborny said a commission set up to evaluate binds in the
    latest tender had actually put Unisys narrowly ahead of
    EDS-Digital. But the ministry had decided to ignore its
    recommendation due to the consortium's lower price and greater
    experience, he told an news conference.
        Jan Vesely, director of the Czech unit of Unisys, said his
    company would first appeal directly to the ministry. "In the
    event of a negative answer, there is the Economic Competition
    Office," he said.
        Unisys said the EDS bid did not cover all the components
    which were required. EDS officials in Prague declined to comment
    and ministry officials were not contactable.
        A number of other Czech military tenders have been marked by
    controversy, sometimes amid allegations of graft.
        Installation of the staff information system is a large step
    on the Czech army's path to compatibility with the North
    Atlantic Treaty Organisation's military command.
        NATO leaders will decide in July which former communist
    countries will be invited to join the alliance. The Czech
    Republic is a front runner along with Poland and Hungary.
        Vyborny said EDS-Digital had put in a bid of 1.295 billion
    crowns while Unisys was nearly 109 million crowns more
    expensive.
        The tender commission, which rated the bids but was not
    authorised to take any decision, put Unisys marginally ahead of
    EDS. Both were well ahead of International Business Machines
    Corp (NYSE:IBM) and Deloitte and Touche unit IDOM.
        "(The bids of) two companies, Unisys and EDS, are in
    technical terms almost identical. In price terms, without
    question, the best bid was submitted by EDS," Vyborny said.
    "The experience of EDS-Digital with staff information systems is
    greater. It is a bid offering a well-tested system which EDS has
    implemented in 14 NATO countries," he added.
        Unisys said it was suspicious that the original tender was
    abolished and rankings were changed when it won again.
        "We consider this decision on ranking in the public tender
    to be unobjective and unjustified, and we will surely appeal
    against it," the Unisys statement said.
     ($ = 29.46 Czech Crowns)

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
     Symbol               Name
    NYSE:EDS Electronic Data Sys Corp (New)
    NYSE:UIS Unisys Corp
    NYSE:DEC Digital Equipment Corp
    NYSE:IBM Intl Business Machines Corp

              Czech DefMin awards EDS CZK 1.3 bln systems dea

                Reuters, Thursday, March 20, 1997 at 11:58

        "In terms of price, EDS's bid was the most advantageous --
    the price difference was over 108 million crowns -- (but) Unisys
    narrowly came in first as recommended by a commission which
    evaluated the bids," said Defence Minister Miroslav Vyborny.
        "...in technical terms, the bids were almost identical,
    (but) in price terms, without a debate, the best bid was
    submitted by EDS," he added.
        He also said the decision came down to experience, an area
    where EDS appeared to have an advantage.
        "The experience of EDS-Digital with staff information
    systems is larger. It is a bid offering a well-tested system
    which EDS implemented in 14 NATO countries," he added, saying
    the Unisys system was only in three NATO countries.
        EDS Digital is a consortium of EDS Corp and Digital
    Equipment Corp (NYSE:DEC).
        Last August, the Czech office for Economic Competition
    cancelled a tender for the NATO-compatible staff information
    system (SIS) and called for new bids after finding
    irregularities in the tender, which was originally won by
    Unisys. It then set a new tender.
        In the first tender, Unisys (NYSE:UIS) beat out International
    Business Machines Corp's (NYSE:IBM) Czech unit as well as the Czech
    subsidiaries of EDS, Digital Equipment Corp.
        Vyborny added that IBM placed third in the rankings
    according to the commission.
        -- Jan Lopatka, Prague newsroom, 420-2-2423-0003

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
      Symbol               Name
    NYSE:DEC  Digital Equipment Corp
    NYSE:UIS  Unisys Corp
    NYSE:IBM  Intl Business Machines Corp

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Friday March 21 9:44 AM EDT

Sherwood Research's Short Term Outlook: PC Sector

WELLESLEY, Mass., March 21 /PRNewswire/ -- Sherwood has recently completed
an end-user/enterprise buying and acquisition study. The goal of the study
is to determine the near term (6-12 months) growth rate for personal
computer sales, and the acquisition strategies (by brand) for enterprise
buyers and general consumers. The results of the survey are used in
conjunction with information from Sherwood's historical database to
determine effects that change in demand for a company's products or services
will have on corporate revenues and earnings. Sherwood currently follows the
eight personal computing vendors listed below. This report reflects a high
level overview of Sherwood's findings and resulting positions. A discovery
report with detailed outlooks and findings on each equity discussed is
available to Sherwood Research clients.

Apple Computer Inc :

Sherwood Performance Ranking -- Poor Contrary to recent reports stating that
Macintosh product sales have grown, our research demonstrates that just the
opposite is occurring. The developer community has been abandoning the
platform in droves, and much of the education segment (traditionally an
Apple stronghold) have in place, or are developing plans to phase out,
incumbent Apple Computer equipment.

Compaq Computer Corp :

Sherwood Performance Ranking -- Fair During the summer, Compaq announced
better than expected operating results and proceeded to follow these
announcements with strong claims concerning their pending industry
dominance. Sherwood's survey results expose a pending threat to these
claims, and many of the findings undermine Compaq's own projections.

Dell Computer Corp :

Sherwood Performance Ranking -- Excellent Dell Computer shows the most
potential in this group. They have been able to reign in operating costs. In
parallel, they have been able to build one of the strongest distribution
engines in the industry. Sherwood's research finds that Dell has moved into
the top two with respect to satisfaction rankings within the enterprise
marketplace, and Dell ranked first as a single source vendor for PCs and PC
Servers.

Digital Equipment Corp :

Sherwood Performance Ranking -- Par Many of the respondents to our survey
showed historical allegiance to Digital leading us to believe that while
they will not be able to recapture any significant share of the desktop or
portable markets with their current offerings, any new Alpha based PC or
workstation may help offset the losses in the traditional PC markets.

Gateway 2000 Inc :

Sherwood Performance Ranking -- Par Gateway continues to rank in the top
three with respect to brand recognition. Gateway is an anomaly in this group
as most of its sales come from small businesses, home businesses and home
consumers. Sherwood's research indicates that market growth for home
computing equipment will slow dramatically during '97, directly impacting
Gateway's earnings.

Hewlett Packard Company (NYSE: HWP):

Sherwood Performance Ranking -- Good Hewlett-Packard is a broad-based
producer of technology products and is able to leverage their stronghold
within the printer business to create product pull for their personal
computer products and services. HP continues to maintain a strong position
with the enterprise buyer with new found energy with respect to acceptance
of their notebook products.

IBM Corp. (NYSE: IBM):

Sherwood Performance Ranking -- Par IBM shows a strengthening ranking in the
PC Server market, but continues to fall short in the enterprise desktop
space. Enterprise buyers continue to rank IBM notebook products near the top
of their list. The consumer products continue to tread water, and will feel
the effects of slowing overall market demand.

Micron Electronics Inc :

Sherwood Performance Ranking -- Fair Micron's plan to challenge Dell and
Gateway in the direct sales model has not been accepted by either the
consumer or enterprise marketplace. Micron continues to rank near the bottom
of the list with respect to satisfaction and future brand acceptance.

All rankings pertain to FY'97 earnings. The full report outlines earnings
and revenue projections on a quarterly basis for FY'97 and FY'98.

Sherwood's Performance Rankings are intended to show how a company will
perform against consensus estimates for revenue and earnings.

Excellent -- Strongly Exceeding Expectations

Good -- Slightly Exceeding Expectations

Par -- Meeting Expectations

Fair -- Slight Shortfall

Poor -- Large Shortfall

Sherwood Research -- based in Wellesley, Massachusetts - is a leading
provider of decision support to vendors of information technology and to
investors in information technology companies. Sherwood continually collects
and processes results form its Demand/Usage Research Program in order to
quantify market conditions, confirm industry consensus, and/or identify
demand deviations within the computing and communications markets.
Additional information about the company is available on the World Wide Web
at www.srinc.com. SOURCE Sherwood Research

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                           Questions or Comments?

    
    Check this out ... I been hearing this alot lately myself ...
    
    
       For the week of March 17, here are some of the top stories
    reported in major U.S. technology trade publications.
        -----------
        PC WEEK - Digital Equipment Corp (NYSE:DEC) is on the verge of
    a management shakeup that could mean greater authority for
    Bruce Claflin, a vice president and general manager of its
    PC business, PC Week reported March 17. Sources told PC Week
    hat Claflin is in line to assume post of president or chief
    operating officer. The moves could happen this week.
        Compaq Computer Corp (NYSE:CPQ) will introduce next month at
    its Innovate Forum 97 conference two Armada notebook PCs, one
    which is code-named StarTrek with a 166 megahertz Pentium chip,
    MMX technology and a 13.3 inch thin-film display, PC Week
    reported March 17.
    

Digital And NCI Announce Reference Design For Industry's Most Powerful Network
				   Computer

		 PR Newswire, Monday, March 24, 1997 at 09:47

     Digital's StrongARM Microprocessor With NCI's NC Access(TM) Defines
		     High-Performance Internet Appliances

    MAYNARD, Mass., March 24 /PRNewswire/ -- Digital Equipment Corporation
(NYSE:DEC) and Network Computer Inc., a subsidiary of Oracle Corporation
(NASDAQ:ORCL), today announced the DIGITAL Network Appliance Reference
Design.  Based on Digital's powerful StrongARM microprocessor, the reference
design is aimed at creating a standard for the most powerful, low-cost network
computing platform.  The companies believe integration of NC Access(TM), NCI's
comprehensive network computing software environment, with this new design
will help shape the direction of the emerging network computing market.
The DIGITAL Network Appliance Reference Design will guide manufacturers in
building high performance, low-cost appliances that access the World Wide Web,
yet still interoperate with existing systems.  The reference design is
flexible and will support multiple software environments.  Documentation for
the design will be available free to all manufacturers later this month.
Reference unit samples will be available in April with significant quantities
later this spring.
    Funai Electric Company Ltd., headquartered in Osaka, Japan, and Aranex,
Inc., of Bedford, Mass., have committed to build network computing devices in
accordance with the DIGITAL Network Appliance Reference Design.
    "Low cost and high performance are important to our customers in their
deployment of Network Computers throughout their organizations," said Michael
Chatterton, vice president of marketing for Aranex, manufacturers of the first
Network Computer for business users, the Internet Client Station (ICS).
"Integrating the unique high-speed, extremely low power consumption technology
that Digital has incorporated into the StrongARM CPU with our ICS allows us to
fulfill these customer requirements."

    Springboard for Manufacturers
    "We believe this powerful combination of Digital/NCI technologies will
become the springboard for leading manufacturers to produce cost-effective,
easily supported network clients," said Robert Supnik, Digital vice president
of Research and Development.  "This reference design will enable Digital to
leverage its expertise in microprocessors, Alpha servers, networking, and
systems integration services.  Digital will offer customers complete solutions
for implementing, managing, and supporting network computing environments," he
added.

    NCI's NC ACCESS
    NC Access is the enabling software inside the network computer.  It
includes a comprehensive suite of applications that provide access to the Web,
electronic mail, scheduling, news services and multimedia capabilities.
Easy to use like a television or telephone, NC Access requires no installation
or administration.
    "We're pleased to be working with Digital to provide a powerful framework
for manufacturers to build network computers," said Jerry Baker, president of
NCI.  "The combination of NCI's NC Access and the DIGITAL Network Appliance
Reference Design will result in devices that are both easy to use, and
affordable for homes, schools and corporations."
    Peter Kastner, an industry analyst with Aberdeen Group, said, "The
reference platform answers four market concerns about network computers:
price, performance, power, and productivity.  The synergy of Digital's
StrongARM (microprocessor) and NCI's NC system software will be attractive to
the many organizations now evaluating network computing."

    StrongARM Microprocessor
    Digital's StrongARM processor has established new standards for high
speed, minimum power consumption, and low price.  StrongARM is capable of
delivering the graphics and multimedia performance users want from an Internet
access device, while meeting user requirements for power and cost.
    NCI, a wholly owned subsidiary of Oracle Corp., develops, licenses and
markets all software, technology and support services for the NC, including NC
Access, NC Server and NC Card.  With strategic partners worldwide, NCI's
mission is to bring network computing to the corporate, consumer and
educational marketplaces.  NCI's World Wide Web address is http://www.nc.com
For more information about NCI, please call 415-631-4600.
    Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business partners,
help organizations compete and win in today's global marketplace.  For more
information about Digital Equipment, visit http://www.digital.com  For more
information about StrongARM and the DIGITAL Network Appliance Reference
Design, visit Digital Semiconductor's site at
http://www.digital.com/semiconductor

    Note: Digital and the Digital logo are trademarks of Digital Equipment
Corporation.  NC Access is a trademark of Network Computer Inc.  Oracle, NC,
and Network Computer are registered trademarks of Oracle Corporation.
StrongARM is a trademark of Advanced RISC Machines Ltd.

SOURCE  Digital Equipment Corporation
    -0-                             03/24/97
    /CONTACT:  Tom Madden of Digital, 508-493-9437, maddent@mail.dec.com or
Randy Brasche of Network Computer, Inc., 415-631-4650 or rbrasche@nc.com/

Companies or Securities discussed in this article:
     Symbol                  Name
NYSE:DEC        Digital Equipment Corp
NASDAQ:ORCL     Oracle Corporation

         IBM (NYSE:IBM),after Unisys,appeal Czech tender result

                Reuters, Monday, March 24, 1997 at 13:40

        By Jan Lopatka
        PRAGUE, March 24 (Reuter) - IBM Corp's Czech unit said on
    Monday it would appeal against a Defence Ministry decision to
    award a 1.3 billion crown ($45 million) deal to deliver an
    information system to a consortium of EDS (NYSE:EDS) and Digital
    Equipment Corp (NYSE:DEC).
        IBM said in a statement that EDS-Digital did not fulfil a
    tender condition that stipulated participation of only those
    companies which had accomplished projects in the Czech Republic
    to a similar extent.
        "There are a number of reasons why we are appealing, we are
    still working on it," said IBM's spokesman Michal Urvalek. He
    declined to give more information on the appeal.
        The IBM move comes on the heels of Unisys Corp's (NYSE:UIS)
    announcement on Thursday that it too would appeal the decision.
    Any appeals must be delivered to the ministry this week.
        IBM placed third in the eyes of an 11-member committee
    evaluating bidders in the tender, behind Unisys which came in
    first and EDS-Digital, which won the contract after the ministry
    decided not to follow ratings.
        Implementation of the staff information system is seen as a
    large step on the path to make the Czech army more compatible
    with armed forces of NATO countries, but finding its supplier
    has been a struggle.
        Unisys won an original four billion crown supply tender
    which was annulled last year after Czech competition authorities
    found irregularities in the process.
        The original tender was cancelled by the Defence Ministry,
    but the former Ministry for Economic Competition intervened and
    cancelled that decision before ordering a new tender itself.
        Unisys and IDOM, a unit of Deloitte and Touche, were ousted
    from the new tender earlier this year for application
    violations, but were later allowed to re-enter the competition.
        Unisys denied the mistakes, as revealed by the ministry,
    ever happened.
        In announcing the winner, Defence Minister Miloslav Vyborny
    said the technical quality of EDS-Digital and Unisys bids was
    almost identical, but EDS was chosen because its offer was 109
    million crowns cheaper.
        After Vyborny's announcement, Unisys immediately said it
    would appeal to the Economic Competition Office if necessary. On
    Monday Unisys officials added they could not rule out a request
    for police to investigate the tender proceedings.
       "Our lawyers are investigating this possibility...but it is
    priority number two, a step after other possibilities fail,"
    said Jiri Nykodym of Unisys's Czech unit.
        Unisys said Vyborny was wrong to take the decision since
    under tender rules, price should have been a decisive factor
    only if two bidders received identical scores from the
    commission.
        "The tender rules were broken and in fact, the way of
    evaluation of bids was changed in the course of the tender at
    the moment when it became clear that...Unisys would have won the
    tender for the second time," Nykodym said.
        -- Prague Newsroom, 420-2-2423-0003
    ($ = 29.14 Czech Crowns)

     Copyright 1997, Reuters News Service

    Companies or Securities discussed in this article:
     Symbol              Name
    NYSE:IBM Intl Business Machines Corp
    NYSE:EDS Electronic Data Sys Corp (New)
    NYSE:DEC Digital Equipment Corp
    NYSE:UIS Unisys Corp

BEA Receives Federal Approval to Acquire ObjectBroker and DECmessageQ Product
			      Lines From DIGITAL

		PR Newswire, Tuesday, March 25, 1997 at 08:20

	  72 DIGITAL Employees and Contractors to Transition to BEA

    SUNNYVALE, Calif., March 25 /PRNewswire/ -- BEA Systems, Inc., a leading
provider of distributed Enterprise Middleware Solutions(TM), today announced
it has received approval from the Federal Trade Commission and the U.S.
Assistant Attorney General to proceed with the acquisition of the Digital
Equipment Corporation (NYSE:DEC) ObjectBroker and DECmessageQ product lines.
    BEA's acquisition of these and other related products was pending approval
from the Federal Trade Commission in accordance with the Hart-Scott Rodino
Act, which requires a 30-day waiting period to review the proposed
acquisition.  In addition, BEA also announced that 72 of the 75 DIGITAL
employees and contractors have accepted employment offers from BEA. The
acquired products complement BEA TUXEDO(R), the company's market-leading
transactional middleware product, making BEA the only full-service,
cross-platform provider of open middleware.
    Under the terms of the agreement, BEA is obtaining exclusive worldwide
rights and all associated patents, trademarks, and intellectual property for
three DIGITAL products:  ObjectBroker, a production-quality CORBA-compliant
Object Request Broker (ORB); DECmessageQ, one of the industry's fastest
message-oriented middleware (MOM) products; and ObjectBroker Desktop
Connection, which connects ActiveX clients to ObjectBroker.  In addition, BEA
is receiving an unrestricted worldwide source license for DIGITAL's SAP R/3
Wrapper.
    Leading industry analyst firms believe that the combination of transaction
monitors, message queuing, and object technology is the next evolution of
middleware, especially important for applications using the Internet.  With
this acquisition, BEA's enterprise middleware suite is positioned to be at the
forefront of this next-generation middleware.

SOURCE  BEA Systems Inc.
    -0-                             03/25/97
    /CONTACT:  Birdie Fenzel of BEA Systems, Inc., 408-542-4081, or
birdie.fenzel@beasys.com; or Mary Cobb of Blanc & Otus, 415-512-0500, or
mcobb@bando.com, for BEA Systems, Inc./

Companies or Securities discussed in this article:
   Symbol                   Name
NYSE:DEC     Digital Equipment Corp

    From the 3/31 edition of the Worcester Business Journal:
    
    "In other news, DEC has sold three parcels of land amounting to
    112 acres in southern New Hampshire and Bedford, Massachusetts,
    for a combined total of $4.6 million.  DEC is also marketing sites
    in Marlboro, Lancaster, Stow and Westfield, as well as additional
    New Hampshire sites."
    
    Mark
    

    In this mornings Wall Street Journal:
    
    Bruce Claflin to be named VP of sales and marketing for servers,
    workstations, pcs, storage networking, Harry Copperman to head
    engineering, manufacturing, development, John Rando to keep service
    role, Bill Strecker to keep technology and strategic planning, and
    Charlie Christ to have reduced responsibilities.
    
    Mark
    

Subj:	Digital Equipment Expected To Unveil Major Management Overhaul
April 2, 1997 / Quote.com

News Alert from Dow Jones Online News via Quote.com
Topic: Digital Equipment Corp
Quote.com News Item #2400620
Headline: Digital Equipment Expected To Unveil Major Management Overhaul

======================================================================
By Jon G. Auerbach
Staff Reporter of The Wall Street Journal
   Digital Equipment Corp. Chief Executive Robert B. Palmer, unhappy
with the company's lackluster performance, is planning a management
reorganization that will vault Bruce L. Claflin to the de facto No. 2
position at the company, say people familiar with the plans.
   The expected move, which could be announced as early as today, is the
third major structural overhaul Mr. Palmer has devised since taking over
at Digital in 1992. Digital has all but missed out on the latest round
of growth in the computer industry, and the shake-up reflects Mr.
Palmer's growing dissatisfaction with the company's performance,
according to people who have heard his views.
   The latest plan will abandon the structure that Mr. Palmer put in
place three years ago, under which top managers generally have
responsibility for separate products, sales of those products and other
support functions in eight discrete business units. In its place will be
a more traditional structure in which power will be more concentrated
and roles will be divided more according to functions.
   Under the new plan, Mr. Claflin, currently vice president in charge
of Digital's personal-computer business unit, will be given control of
the lion's share of the company's sales and marketing functions. Most of
Digital's products -- including computer servers, work stations, PCs,
networking gear and storage devices -- will be sold by the group he is
expected to head.
   Mr. Palmer, who is chairman, chief executive and president, has
declined to appoint a No. 2 executive after the resignation last July of
Enrico Pesatori, formerly head of the company's computer operations. The
latest reorganization doesn't designate a successor, but it does clearly
position Mr. Claflin, who is 46 years old, as the second most powerful
executive at the computer maker, which is based in Maynard, Mass. Mr.
Claflin joined Digital in 1995 after a 22-year career with International
Business Machines Corp.
   A Digital spokesman declined to comment on any reorganization.
   The expected move stands to remove responsibilities from Harold
Copperman, a vice president and head of Digital's systems business unit
who is now responsible for sales and marketing of systems based on
Digital's flagship Alpha processor. Mr. Copperman, who came to Digital
in 1993, is slated to oversee manufacturing, engineering and
development, say people familiar with the new structure.
   Also leading units will be John J. Rando, who keeps the top job at
Digital's computer-services sector; and William D. Strecker, who remains
in charge of technology and strategic planning. Charles F. Christ, once
viewed as a successor to Mr. Pesatori and currently in charge of
Digital's components division, apparently loses out in the
reorganization, keeping his vice president's title but losing
responsibilities.
   The restructuring reflects Mr. Palmer's dissatisfaction with sales
performance. Digital, once the No. 2 computer maker behind IBM, last
year slipped to the No. 4 slot, trailing Compaq Computer Corp. and
Hewlett-Packard Co. in sales. Revenue in the company's fiscal second
quarter ended Dec. 28 slid 15% to $3.56 billion. Digital earned $31.9
million, or 15 cents a share, in the quarter, down from $148.8 million,
or 91 cents a share, a year earlier.
   Mr. Palmer organized Digital into five "customer" business units in
1993 that worked as teams to address separate sectors of equipment
buyers, such as banking and health care. He scrapped that system in
early 1994 in favor of the current model.
   People familiar with the matter say Mr. Palmer believes Mr. Claflin's
successes in PCs make him well suited for the top sales and marketing
job. Digital's PC unit broke into profitability recently after a string
of disappointments. But the shift also means Mr. Claflin's performance
will be closely watched; the previous two executives to fill the No. 2
slot, Mr. Pesatori and Edward E. Lucente, were pushed out of the company
for not making their numbers.
   Mr. Palmer plans to have the changes in place by July, when the
company begins its fiscal year.
   Copyright (c) 1997 Dow Jones & Company, Inc.
   All Rights Reserved.

% ====== Internet headers and postmarks (see DECWRL::GATEWAY.DOC) ======
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% Date: Tue, 1 Apr 1997 23:45:10 -0800 (PST)
% Message-Id: <199704020745.XAA13857@news.quote.com>
% To: quotecom-users@quote.com
% Subject: Digital Equipment Expected To Unveil Major Management Overhaul

    
    So why do we have to hear this from the WSJ instead of our own
    management?

    Because things were shut down by snow? :-)

Re: .423

>> Charles F. Christ, once
>> viewed as a successor to Mr. Pesatori and currently in charge of
>> Digital's components division, apparently loses out in the
>> reorganization, keeping his vice president's title but losing
>> responsibilities.

Note that the report on Livewire says that Charlie Christ is retiring effective
July 1st.

Also note the statements:

"Digital Equipment Corp. Chief Executive Robert B. Palmer, unhappy
with the company's lackluster performance"

			and

"Palmer's growing dissatisfaction with the company's performance..."

What's wrong with this picture???

	A better question might be "What's familiar about this 
	picture?". Haven't we heard this the past couple of
	years each time we take a nosedive?

							mike

Exactly my point.  Take the quotes in .428 and exchange "Palmer" with
"company" and that's what I was getting at.

-JT

    
    I believe I have enough shares to wallpaper my kitchen with. I'm trying
    to get more, so I can also paper the bathrooms.

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Wednesday April 9 1:23 PM EDT

Borland and Digital Announce New Marketing Partnership

Borland to Deliver OLEnterprise for the Digital AlphaServer Family of
Systems

SCOTTS VALLEY, Calif., April 9 /PRNewswire/ -- Borland International Inc
today announced its intention to deliver its OLEnterprise distributed object
middleware for Digital Equipment Corp AlphaServer platform. OLEnterprise
provides scalability and fail over safety for business critical applications
in a distributed, multi-tier computing environment. The two companies also
announced that Borland has joined Digital's Association of Software &
Application Partners (ASAP) and Internet Innovators business partner
programs.

"The Digital AlphaServer is a key platform for corporate and enterprise
developers," said Zack Urlocker, Borland's vice president of product
management. "This new partnership with Digital continues our Golden Gate
commitment to align Borland with industry leaders and to support all major
computing standards and platforms for our customers."

"We are very pleased to welcome Borland to the ASAP Program," said Jack
Mileski, Digital's ASAP Program Manager. "Borland and Digital both have
unique strengths that integrate well with each other, and the availability
of Borland's suite of industry-leading application development software on
Digital's family of high-performance AlphaServer systems will deliver
customers a solution set that is powerful and comprehensive."

Digital's family of AlphaServer systems take advantage of the industry's
fastest processors, advanced clustering technology, thousands of
applications optimized for high-performance 64-bit computing, and a choice
of Digital UNIX, OpenVMS, or Windows NT operating systems. The AlphaServer
platform is ideal for a wide variety of applications and can be easily
scaled to meet the changing needs of large enterprises, small companies, and
departments. It is designed to provide high transaction throughput,
availability, and reliability for Internet commerce, data warehousing, mail
and messaging, and business and technical applications.

Borland Support for Alpha

Borland OLEnterprise support for Alpha-based systems running Windows NT will
be available in the second half of 1997. Borland has already delivered Alpha
support for its InterBase relational database server under Digital UNIX and
OpenVMS. Borland Entera also supports Digital UNIX today. In addition, all
of Borland's client/server and Internet development tools, including Delphi
Client/Server Suite, C++Builder Client/Server Suite, and IntraBuilder
Client/Server support Digital's Intel-based PCs and servers today.

Digital's Business Partner Programs

Digital's Association of Software & Application Partners Program (ASAP) is a
comprehensive initiative that is tailored to address the unique demands and
requirements of the software developer community, including Independent
Software Vendors, System Integrators and Software/Application Value Added
Resellers. ASAP offers a broad range of incentives to companies in an effort
to make it easier and more attractive for them to develop, migrate and sell
software and applications on and for Digital platforms. Since its inception
in September of 1995, the ASAP program has grown to the point where today
its over 2,000 member companies deliver more than 8,000 software
applications that are available on Digital's family of AlphaServer and
AlphaStation systems.

The Internet Innovators Program is a Digital partners program that is
designed to assist Internet software companies port their applications to
the Alpha platform through the ASAP services, and promote the resulting
product to Digital's global channel partners, customers and prospects.

About Digital

Digital Equipment Corporation is a world leader in open client/server
solutions, from personal computing to integrated worldwide information
systems. Digital's scalable Alpha and Intel platforms, storage, networking,
software and services, together with industry-focused solutions from
business partners, help organizations compete and win in today's global
marketplace. For additional information visit Digital on the Internet at
www.digital.com.

Borland: Making Development Easier

Borland International, Inc. is a leading provider of high-quality software
products for software application developers worldwide. Borland is
distinguished for its award-winning family of rapid application development
tools and scalable middleware technology for desktop, client/server,
Internet/intranet, and enterprise systems. The Company's products are
supported through comprehensive corporate and independent developer
programs, value added resellers, and systems integrators. Founded in 1983,
Borland is headquartered in Scotts Valley, California. For more information
on Borland, customers can visit Borland Online at http://www.borland.com.

Forward-looking statements in this release, including but not limited to,
those concerning Borland's future financial performance, product
availability dates, and the potential features of or benefits to be derived
from the Company's products, involve a number of uncertainties and risks,
and actual events or results may differ materially. Factors that could cause
actual events or results to differ materially include, among others, the
following: possible disruptive effects of organizational or personnel
changes, shifts in customer demand, market acceptance of the Company's new
or enhanced products, delays in scheduled product availability dates,
actions or announcements by competitors, software errors, general business
conditions and market growth rates in the client/server and Internet
software markets, and other factors described in the Company's S.E.C.
reports on forms 10-K, 10-Q, 8-K and the Borland prospectus relating to the
acquisition of Open Environment Corporation.

NOTE: Digital, the Digital logo, AlphaServer and AlphaStation are all
trademarks of Digital Equipment Corporation. Borland product names are
trademarks or registered trademarks of Borland International, Inc. Other
product names mentioned herein may be trademarks of the party using such
names. SOURCE Borland International Inc.

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Monday April 14 12:21 PM EDT

Microsoft Windows NT Running on Digital Workstations Offers 39% Lower Total
Cost of Ownership Compared to UNIX Workstations

Independently Conducted Test Suite Results Prove Performance Leadership for
Digital Alpha Architecture Running on Windows NT Workstation

MAYNARD, Mass., and REDMOND, Wash., April 14 /PRNewswire/ -- Two independent
studies show Digital Personal Workstations running Microsoft(R) Windows
NT(R) Workstation offer a lower cost of ownership and dramatically
outperform competitors' UNIX offerings.

A Deloitte & Touche Consulting Group study of 113 organizations concluded
that the average three-year total cost of ownership for Digital Personal
Workstations running Microsoft's Windows NT Workstation was $63,000 versus
$104,000 for comparable UNIX machines: a savings of 39 percent.

The detailed study considered acquisition and maintenance costs of hardware
and software, technical support costs, and user self-support costs related
to workstations. The results suggest that for a group of 25 workstations,
savings in a three-year total cost of ownership can amount to more than one
million dollars.

Separately, Pro/E: The Magazine, reported that the Digital Personal
Workstation 500a running Windows NT Workstation 4.0 offered the fastest
performance of all workstations tested, regardless of CPU architecture or
operating system. In the study, six of the ten fastest systems were running
Windows NT Workstation.

In a technical workstation environment lead by traditional UNIX machines,
Windows NT Workstation now provides similar functionality, fast performance,
a lower initial purchase price, and significantly lower cost of ownership.

This is a major finding of the Deloitte & Touche Consulting Group study
entitled, "Technical Workstation Total Cost of Ownership Study, A Cost
Comparison of Microsoft Windows NT Workstation and UNIX." These cost savings
hold true for all the major application areas covered in the study:
Mechanical Design Automation, Geographic Information Systems, and Digital
Content Creation.

"The study for the first time validates what many people already suspected
to be true," said Will Robinson from Deloitte & Touche Consulting Group. "It
also provides a means for IT managers to quantify costs and understand
return on investment before embarking on a UNIX-to-Windows(R) migration."

Providing The Best Value to Customers

The study presents a total cost of ownership (TCO) model for technical
workstations developed by Deloitte & Touche Consulting Group and
underwritten by Digital Equipment Corporation and Microsoft Corporation. The
cost components of the TCO model included hardware and software acquisition,
support and maintenance and opportunity costs.

"The question is no longer whether or not to migrate to Windows NT. The
question is -- how soon can I do it and how can I maximize my competitive
advantage," said Philippe Ribeyre, vice president of Digital's Workstation
Business Segment. "Digital and Microsoft offer the products, the services
and the know-how to help customers achieve those objectives today, better
than any other vendor or any combination of vendors," Ribeyre said.

"The Deloitte & Touche study confirms that Windows NT Workstation offers a
compelling, cost-effective alternative to expensive and proprietary Sun and
other UNIX workstations," said Jim Allchin, senior vice president of the
Personal and Business Systems Group at Microsoft. "Microsoft and Digital are
committed to reducing cost of ownership, while continuing to provide
innovation and value in the Windows platform with the Zero Administration
for Windows Initiative."

The study also reveals that maintenance and support costs are considerably
higher for UNIX workstations than for Windows NT workstations. The cost
differential over three years for just one workstation is more than $8,000.
In addition, the study concludes that with Windows NT workstations, many
organizations may be able to reduce or eliminate dedicated support staffs
for technical departments, relying instead on established PC support
organizations.

Performance Leadership from Digital and Microsoft

In applications benchmarks conducted by Pro/E: The Magazine, Digital
Personal Workstation 500a running Windows NT Workstation outperformed a
similarly priced Sun Ultra 1-40E by 171 percent and outperformed a 49
percent more expensive Sun Ultra 1-200E by 98 percent.

Pro/E: The Magazine's used "Bench97," a benchmark based on typical daily
tasks performed by an engineer using Pro/Engineer software. The Digital
Personal Workstation 500a outperformed 22 workstations in the Bench97 test.
It outperformed a similarly priced Sun Ultra 1-140E by 171 percent and beat
the twice as expensive, two-processor Sun Ultra 2-2300 by 37 percent.

Digital's Personal Workstations are a key part of Digital's continuing
strategy of providing the best performance and value for Windows NT
solutions across corporate and technical computing environments. The Digital
Microsoft Alliance for Enterprise Computing, formed in August 1995, combines
Microsoft client/server products with Digital's leadership in enterprise
systems, service, support and systems integration. Customers can deploy
business solutions on the Microsoft Windows and Windows NT operating systems
with assurance of integration into the most complex business environments.

For more information on the Alliance and to obtain a copy of the Deloitte &
Touche Consulting Group study, refer to
http://www.alliance.digital.com/microsoft. For more information on Digital
Personal Workstations, see http://www.workstation.digital.com. For more
information on Windows NT Workstation, see
http://www.microsoft.com/ntworkstation. For more information on Pro/E: The
Magazine workstation benchmark scores, see http://www.proe.com/.

Founded in 1975, Microsoft Corp is the worldwide leader in software for
personal computers. The company offers a wide range of products and services
for business and personal use, each designed with the mission of making it
easier and more enjoyable for people to take advantage of the full power of
personal computing every day.

Digital Equipment Corp is a world leader in open client/server solutions
from personal computing to integrated worldwide information systems.
Digital's scalable Alpha and Intel platforms, storage, networking, software
and services, together with industry-focused solutions from business
partners, help organizations compete and win in today's global marketplace.

NOTE: Digital and the Digital logo are trademarks of Digital Equipment
Corporation. Microsoft, Windows and Windows NT are either registered
trademarks or trademarks of Microsoft Corporation in the United States
and/or other countries. UNIX is a registered trademark in the United States
and other countries licensed exclusively through X/Open Company Ltd. Other
product and company names herein may be trademarks of their respective
owners. SOURCE Digital Equipment Corporation

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Monday April 14 11:25 AM EDT

Digital Extends Three-Year Lead Over Competition in 64-Bit Computing

Targeting Customers' Needs for High Performance, High Availability, and
Intranet Solutions

MAYNARD, Mass., April 14 /PRNewswire/ -- In a move that extends its
leadership in delivering 64-bit computing solutions to businesses, Digital
Equipment Corp today rolled out new and dramatically enhanced AlphaServer
systems, high-availability computer-clustering solutions for UNIX and
Microsoft Windows NT, and new Windows NT intranet search capabilities. The
company also announced record-setting Microsoft Exchange, Lotus Notes and
Internet performance results.

This powerful new line-up of products and programs incorporates Digital's
experience delivering enterprise solutions to commercial computing
customers. The new AlphaServer 800 and enhanced AlphaServer 1000A systems
are competitively priced entry-level and small-business server solutions. To
address the need for increased reliability of mission-critical business
applications, Digital is also offering a new version of its Windows NT
cluster software for Intel and Alpha platforms. For commercial customers
seeking to better manage intranet-based information, which can often be
disorganized within a business, Digital is providing an easy-to-implement
solution with its new AlphaServer Intranet Search package for Windows NT.

And to make it easy for UNIX customers to deploy high-availability
AlphaServer clusters Digital is announcing an industry-leading factory-
configuration and -testing program.

"Digital continues to set the standard for the server capabilities most
important to commercial customers," said Nancy Epple, Digital vice president
of Enterprise Solutions Marketing. "We pioneered clustering on multiple
operating systems, our 64-bit AlphaServer platform provides customers
dramatic improvements in Web server and database performance and value, and
we continue to deliver outstanding service before and after the sale. While
HP, IBM, and Sun rush to enter the 64-bit arena, we are building confidently
on our three- year lead."

High-Performance 64-bit Server Systems

AlphaServer 800 workgroup and communications server

The new 64-bit AlphaServer 800 5/333 and 5/400 systems deliver leadership
mail and messaging performance, cost-effective Internet features, and
Digital ServerWORKS enterprise-class remote management capabilities in an
entry-level system. The new systems are "Internet Energized" for
out-of-the-box Web application deployment. AlphaServer 800 systems run
Digital UNIX, Windows NT or OpenVMS operating systems. Prices start at just
US$8,600.

AlphaServer 1000A 5/500 enhanced small-business application server

Based on Digital's powerful new 500 MHz Alpha processor, the AlphaServer
1000A 5/500 is the world's fastest departmental server. The system is a
high- power, low-cost, cluster-ready platform ideally suited as an
industrial- strength Web server, database or data mart platform, or
commercial business application server. Prices for 500 MHz AlphaServer 1000A
models start at approximately $24,000.

Record-Smashing Business Application Performance

The AlphaServer 800 5/400 system supports up to 2,600 Microsoft Exchange
users, establishing the system as a powerful entry-level Exchange platform.
The system supports 1,800 active Lotus Notes mail users, delivering best-in-
class Windows NT NotesBench performance that exceeds that of the Compaq
ProLiant 800 and dual-processor Hewlett Packard NetServer LX Pro. (Lotus
NotesBench and Microsoft Load Simulator Utility employ different test suites
using unique parameters. Results of the two benchmarks cannot be directly
compared with each other.)

AlphaServer systems also deliver the industry's top Internet performance,
according to the most recent SPECweb96 benchmark results published by the
Standard Performance Evaluation Corporation (SPEC), of Manassas, Va. For
example, the AlphaServer 4100 5/466 provides the industry's best
uniprocessor performance: an impressive 1240 HTTP operations per second,
which is more than twice as fast as the Sun UltraAX-250, 2.7 times faster
than the IBM RS/6000 43P-140, and more than four times faster than the HP
9000 D310.

Addressing Reliability Needs

AlphaServer TruCluster Program

The AlphaServer TruCluster Program makes it easy for Digital UNIX customers
to order and deploy AlphaServer clusters that are based on their own
specific computing requirements. Most vendors ship systems with little or no
up-front testing; Digital's TruCluster Program provides a factory-configured
and -tested AlphaServer system with Digital's award-winning UNIX TruCluster
clustering, storage, and networking based on the customer's specifications.
As a result, AlphaServer TruCluster systems reach customers sooner and are
ready to run their business applications immediately. Prices begin at
approximately $66,000 for a fully-configured AlphaServer 1000A 5/400
TruCluster solution.

Digital Clusters for Windows NT version 1.1

Digital Clusters for Windows NT V1.1 enables high-availability clustering
for Windows NT on Digital AlphaServer and Intel-based Prioris servers. The
software adds support for the latest versions of leading client/server
applications, including Microsoft Windows NT Server, Internet Information
Server, and SQL Server; Oracle Workgroup and Enterprise Server; Netscape
Navigator Enterprise Server; and Lotus Domino Server.

The enhanced failover support of Digital Clusters for Windows NT V1.1 gives
users continuous uptime for mission-critical Web server, database,
groupware, and file server applications, as well as an easy migration path
to the Microsoft "Wolfpack" enterprise clustering solution.

Intranet Solutions for Commercial Customers

Digital AlphaServer for Intranet Search with Windows NT packaged solution

The AlphaServer for Intranet Search with Windows NT solution is based on the
new AlphaServer 800 5/400 system, Windows NT and powerful AltaVista Search
Intranet Private eXtension software. This new prepackaged solution enhances
use of intranets and extranets by instantly delivering net-based information
to corporate users.

It dramatically reduces the time required to search for and organize
information by automatically creating an index of the internal and external
Web pages critical to an organization. The AlphaServer for Intranet Search
with Windows NT is priced from $31,370.

Digital Equipment Corporation is a world leader in open client/server
solutions, from personal computing to integrated worldwide information
systems. Digital's scalable Alpha and Intel platforms, storage, networking,
software and services, together with industry-focused solutions from
business partners, help organizations compete and win in today's global
marketplace.

NOTE: Digital, AlphaServer, OpenVMS, TruCluster, ServerWORKS, Prioris, and
the Digital logo are trademarks of Digital Equipment Corporation. Microsoft
is a registered trademark and Windows NT is a trademark of Microsoft
Corporation. UNIX is a registered trademark in the United States and other
countries licensed exclusively through X/Open Company Limited. Lotus Notes
is a registered trademark and Notes, Domino, and NotesBench are trademarks
of Lotus Development Corporation. Oracle is a registered trademark of Oracle
Corporation. Intel is a registered trademark of Intel Corporation. HP is a
registered trademark of Hewlett-Packard Company. IBM is a registered
trademark of International Business Machines Corporation. Sun is a
registered trademark of Sun Microsystems, Inc. SPEC is a registered
trademark of Standard Performance Evaluation Corporation. SOURCE Digital
Equipment Corporation

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                           Questions or Comments?

Since there is no generally accepted method for calculating Total Cost of
Ownership, you can simply invent any figures you want to prove your point. 
Since Microsoft commissioned the study, it obvious they would invent 
numbers to prove NT is better than Unix.

13.434 is pure MARKETING, not to be confused with FACT!

Perhaps through this joint announcement, Digital can learn some marketing 
tips from Microsoft.


                                                        -Paul

    Digital Q3 earnings seen sharply lower
    
        Reuters Story - April 15, 1997 15:39
    
        FINANCIAL DPR ENT US DEC V%REUTER P%RTR 
    
    
    
    
        Copyright 1997 Reuters Limited. All rights reserved.
        By Michael Ellis 
    
        BOSTON - Digital Equipment Corp is expected to report
        sharply lower third quarter earnings on Thursday from currency
        fluctuations and slowing sales of its Alpha systems, analysts
        said. 
    
        Analysts on average expect the Maynard, Mass.-based company
        to report earnings of $0.24 a share in the traditionally strong
        quarter, down from $0.74 in the third quarter last year. 
    
        Key to the quarter will be sales of Digital's computer
        systems based on its fast Alpha microprocessors, which slowed
        to 4 percent growth in the first quarter and 1 percent growth
        in the second quarter. 
    
        "The whole Alpha side has not been doing well," said
        analyst Gary Helmig of SoundView Financial Group. "It had been
        growing 30 to 40 percent." 
    
        Richard Chu, an analyst from Cowen Corp, said Alpha sales
        growth of even 6-to-10 percent would be encouraging. 
    
        Despite sharp price cuts in January on its servers and
        workstations powered by Alpha, some analysts said those sales
        may be flat or down in the third quarter. 
    
        Digital has been warning analysts to expect revenues to be
        flat or down sequentially in the third quarter, said Helmig,
        who has estimated earnings of $0.22 per share. 
    
        "If they come in below $0.22 then it will be a bad, bad
        sign," he said. 
    
        Digital, which draws roughly 60 percent of its revenues
        overseas, has also been hurt in recent quarters by slow sales
        of information systems in Europe, analysts said. 
    
        The company said earlier this year that currency
        fluctuations could cut profits by about $30 million in the
        third quarter. In the second quarter, currency fluctuations
        cost the company about $20 million. 
    
        Chu said the company may still be feeling the ill effects
        of a sales reorganization to expand direct coverage to its top
        2,500 customers from 1,000, which unexpectedly hurt earnings in
        the fourth and first quarters. 
    
        Several analysts said Digital's sales force is still
        reeling from the reorganization, and some sales people are
        either looking for new jobs or have left the company. 
    
        Earlier this month, Digital named Bruce Claflin head of its
        sales and marketing department and announced it would
        consolidate the sales and marketing operations of its personal
        computer and systems business units into a single organization. 
    
        "There seems to be an exodus of good people," said Terry
        Shannon, editor of the newsletter Shannon Knows DEC. "There
        have been a significant number of defections. It's not the most
        auspicious sign." 

CNNfn just announced that the 5 mil+ lawsuit against DEC from 
keyboards problem has been reversed by a federal judge. The judge has 
issued a new trial because DEC has shown the injuries where not job 
related



 

Must have been this weekend's Ann Landers column in which she used this case
as an example of "crazy lawsuits".

					Steve

    But the barndoor still seems open... the lawsuit supposedly
    demonstrated that DIGITAL withheld information about ergonomics,
    etc. from customers that it gave to employees.  So *HER* injuries
    could be blamed on a previous neck problem... is that true for
    all the others that have lined up?  K 

The judge let one award stand (~$300K if I recall), voided the 2nd (statute
of limitations), and ordered a new trial for the $5Mil+ verdict. Digital said
it's going to appeal the one that was let stand, and the plaintiffs lawyer is
appealing to let the multimillion dollar award stand

					Trace

Most by a single vendor (again...)

Prioris Servers, AlphaServer Systems and AlphaStations Combine to Win 15
Awards -- Most Awards by a Single Vendor

LAS VEGAS, May 8 /PRNewswire/ -- Reinforcing its leadership in price/performance
enterprise solutions, Digital Equipment Corporation (NYSE:DEC) (Networld+InterOp
booth # 5041), today received 15 awards at AIM Technology's Spring '97 Hot Iron
Awards Ceremony held at Networld+InterOp. Digital's Prioris servers, AlphaServer
systems and AlphaStations won awards in the performance and price/performance
categories, for both Windows NT and UNIX environments. 

See http://biz.yahoo.com/prnews/97/05/08/dec_x0002_1.html
and http://www.aim.com/pm_awards.html

-Jeff

Tuesday May 13 7:06 AM EDT 

Company Press Release

Source: Digital Equipment Corporation

Digital Equipment Corporation Sues Intel Corporation For Violating
Microprocessor Architecture Patents

Lawsuit maintains Intel infringed Digital patented technology to enhance
performance of Pentium, Pentium Pro and Pentium II microprocessors

WORCESTER, Mass., May 13 /PRNewswire/ -- Digital Equipment Corporation
(NYSE:DEC) has filed a lawsuit in U.S. District Court, District of
Massachusetts, here charging Intel Corporation (Nasdaq:INTC) with willful
infringement of 10 Digital patents in making, using and selling
microprocessor products, including its Pentium, Pentium Pro and Pentium II
microprocessor families. 

Alleging that Intel's patent infringement has caused Digital economic
injury and, if not stopped, would cause irreparable harm, the company seeks
both an injunction and monetary damages, including triple damages for
Intel's willful violation of the patents. The injunction would prohibit
Intel from using Digital's patented technology in its present and future
microprocessor products. 

``Over the years, Digital has made substantial investments in developing
computing architectures and microprocessor technology,'' said Digital
Chairman Robert B. Palmer. ``It is our duty to our shareholders, customers,
partners and employees to protect our intellectual property rights and the
benefits of our industry-leading research and development efforts.'' 

The patents cited in Digital's lawsuit protect Digital's innovations in
high-performance computing architecture and micro-processor technology. The
patents relate to technologies -- cache management, branch prediction and
high-speed instruction processing -- which are vital to state-of-the-art
microprocessor design. The patents were issued by the U.S. Patent and
Trademark Office between 1988 and 1996. 

``In developing its VAX and Alpha products, Digital significantly advanced
computer architectures and microprocessor design,'' Palmer said. ``Intel's
unauthorized use of Digital's technology to significantly enhance the
performance of its microprocessors violates Digital's legal rights. 

``As a result of its infringement of our patents,'' Palmer continued,
``Intel has strengthened its monopoly in the X86 market and is seeking to
extend its monopoly to higher-performance microprocessors. This conduct
threatens the competitive environment essential for continued innovation
and growth in the computer industry.'' 

Thomas C. Siekman, Digital vice president and general counsel, said, ``This
lawsuit is essential to protect the billions of dollars Digital and its
shareholders have invested in the development of leading-edge computing and
microprocessor technology.'' 

Digital Equipment Corporation is a world leader in open client/server
solutions from personal computing to integrated worldwide information
systems. Digital's scalable Alpha and X86 platforms, storage, networking,
software and services, together with industry-focused solutions from
business partners, help organizations compete and win in today's global
marketplace. 

Note: Digital, the Digital logo, VAX are trademarks of Digital Equipment
Corporation. Pentium, Pentium Pro and Pentium II are trademarks of Intel
Corporation. 

SOURCE: Digital Equipment Corporation 
    
    

                                  [ISMAP]
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                           [INLINE] May 13, 1997
                                      
                      Palmer: Lawsuit Not Made Lightly
                       (05/13/97; Updated 1 p.m. EDT)
                        By David Braun, TechInvestor
                                      
     Here are some edited remarks and responses to questions by Digital
       Chairman Bob Palmer in a conference call Tuesday regarding the
                      company's lawsuit against Intel:
                                      
     Our goal is very simple: stop Intel from unlawfully using Digital
    patent technology in its present and future microprocessor products.
                                      
    By using Digital's patented technology, Intel has achieved dramatic
     performance improvements over the last few years, improvements it
   apparently it could not have achieved with technology developed in its
    own labs. This allowed Intel to strengthen its monopoly position in
   the X86 desktop market and the company has been seeking to expand that
   monopoly to higher performance microprocessors suitable for department
                  level and even enterprise level systems.
                                      
          Such conduct is a threat to competition in our industry.
                                      
      The lawsuit is also important to Digital because Intel's actions
   strike at the very heart of what this company stands for: innovation.
    Since its founding some 40 years ago this year, Digital has been an
   industry pioneer in many areas, particularly in computer architecture,
                       systems, software and silicon.
                                      
    Due to the hard work and dedication of thousands of talented Digital
   employees, we've earned a well-deserved reputation for excellence and
      leadership in technology. This has been a source of strength and
      recognition for Digital, which we have translated into products,
     services and solutions that are highly valued by our customers and
                                 partners.
                                      
   The decision to file suit in this case was not made lightly. Intel is
      a long-time Digital customer and a major supplier, as well as a
   competitor. It is a very successful company and I respect much of what
    they have accomplished. But Intel is making unlawful use of Digital
    technology, and I have an obligation to our shareholders, employees,
   customers and partners to defend our intellectual property rights and
           the benefits of our research and development efforts.
                                      
    To understand our position it might help if I gave you some history.
   Digitalarchitectures, which are the products of years of research and
    development, significantly advanced the art of computer architecture
     and microprocessor design. Alpha, our flagship microprocessor, was
        introduced in 1992. It was one of the world's first 64-byte
    microprocessors and almost five years later it is still setting the
   standard of performance for the industry, a standard I should add made
   possible in large part by the inventions which are the subject of this
                                   suit.
                                      
       The advent of Alpha and other RISC processorspresented a major
    competitive challenge to IntelIntel was fully aware of the challenge
      posed by Alpha. Executives and others from both companies met on
    several occasions during 1990 and 1991 to discuss the possibility of
                   Intel adopting the Alpha architecture.
                                      
    We wanted to make Alpha the 64-byte microprocessor of choice, and we
     believed that Intel, which did not have a 64-byte processor, could
    help us do this. Digital provided Intel information about the design
    and performance of Alpha on a confidential basis to convince them to
   partner with us. We offered them a license to the Alpha architecture.
                                      
   In November 1991, Intel rejected our offer. Two years later, in 1993,
     Intel introduced the Pentium family of processors. The Pentium and
    subsequent 32-byte Pentium Pro chips have fueled Intel's incredible
                                  growth.
                                      
    Our recall the introduction of the Pentium Pro in November 1995 very
     clearly because I remember being surprised by the quantum leap in
       performance that Intel achieved, a performancemuch similar in
     magnitude to the one that Digital had achieved three years earlier
                                with Alpha.
                                      
     The business and trade press was filled with statements expressing
     surprise that Intel had engineered such a dramatic improvement. My
   natural assumption was that Intel had developed its own innovations of
                high-performance microprocessor technology.
                                      
     It gradually became apparent, however, that there were substantial
    similarities between Pentium Pro and Alpha. We conducted a thorough
     and rigorous examination of the data and we concluded that Digital
                       patents were being infringed.
                                      
    Our concerns about Intel's unlawful use of Digital's technology were
    reinforced by statements attributed to the top two Intel executives
     who talked openly about the company's practice of copying computer
              systems architectures and their microprocessors.
                                      
    Specifically, I am referring to an article that appeared in the Wall
     Street Journal on August 26, 1996. Among other things, the article
          reported that Intel had done little original research in
                    microprocessor architecture design.
                                      
     Now I do not mind competing against Intel, but I would rather not
                    compete against our own technology.
                                      
   The patents at issue in our suit relate to technologies that are vital
       to state-of-the art and next-generation microprocessor design,
      including the way that information is stored and processed. The
     development of these technologies required a substantial financial
    investment by Digital and its shareholders as well as a substantial
       investment in time and intellect by our patent holders and the
     thousands of Digital people who have applied these technologies to
                             customer problems.
                                      
        But these technologies did more than give Intel's products a
      substantial performance fizz. It also helped fuel the company's
    remarkable performance growth over the last few years. According to
     Dataquest, Intel's share of the market for microprocessors used in
           general purpose computing systems exceeds 85 percent.
                                      
    This conduct not only threatens the general competitive environment,
    it directly threatens all companies that invest in innovation, like
                                  Digital.
                                      
   The time has come for these unlawful practices to stop, and Digital is
                      determined to see that they do.
                                      
      This lawsuit is about more than just patent law. It is about our
    ability to deliver value to our customers unimpeded by the unlawful
       actions of others. It is about the right of companies to their
   innovations and the benefits that they produce. It is about protecting
        the inventors who are the true source of our achievements in
   technology, and it is about ensuring a fair and appropriate return for
                             our shareholders.
                                      
   We do not underestimate the challenge of taking legal action against a
   company with the resources and market power of Intel, but we are fully
       prepared to pursue this case and we are confident that we will
                                  succeed.
                                      
     [INLINE] Given that Intel ships more Intel-based than Alpha-based
         systems, isn't this a case of biting the hand that feeds?
                                      
    [INLINE] The facts are we became suspicious when the Pentium Pro was
          introduced with its tremendous performance over previous
      architectures. We began asking some questions and looking at the
    similarity of that chip with our Alpha architecture. We particularly
      noticed the article in the Wall Street Journal and I askedfor a
   rigorous evaluation of our legal and technical position. We concluded
   that work very recently. (We brought) this action as quickly as it was
    prudent to do so after I thoroughly convinced myself that it was the
   right thing to do both ethically and economically for our companyThere
            are no other motives associated with it whatsoever.
                                      
     [INLINE] Have you had any discussions with Intel management at all
                    prior to the launch of this lawsuit?
                                      
   [INLINE] Not on this topic, although I sent Andy Grove an e-mail this
     morning and I faxed him a note and I intend to talk to him later.
   Given that the time zones are quite different, it seemed inappropriate
     to wake him to talk it over with him. We had talked to him back in
                               1990 and 1991.
                                      
      [INLINE] Where will be able to get the technical details of your
                                patent suit?
                                      
   [INLINE] The actual action was filed in Massachusetts federal district
       court in Worcester, Mass., and a copy of what was filed can be
    obtained there. We don't plan to put out the details of that on our
    web page, although there will be a lot information available on our
                         web page about this topic.
                                      
      [INLINE] Do any other RISC architecture manufacturers share your
                 belief that Intel infringed their patents?
                                      
   [INLINE] More appropriate to ask them the question. I don't know what
                             their thinking is.
                                      
    [INLINE] Why now for the suit? With a lot of the RISC features being
      noted many times over the years in the trade press, surely this
                information was available to you before now?
                                      
    [INLINE] I was not about to launch any frivolous action. I wanted to
   be absolutely certain of the strength of both our legal and technical
     positions. I only got really energized around this topic with the
   publication of the Wall Street Journal article. Let me quote you a few
      things from the article to make it a little clearer. This is the
   August 26, 1996 Corporate Focus. The title is "Intel Shifts Its Focus
            To Long-Term Original Research." Under that it says:
    "Microprocessor-maker forms special team as 'there's nothing left to
                                  copy.'"
                                      
    The article goes on to say, "For decades, unbeknownst to most people
   outside the chip business, has done almost no original microprocessor
    research beyond what it takes to get its products out. Instead, the
   world's biggest chip-maker copied and improved upon approaches already
    laid out by many computer mainframe and supercomputer designers. But
    Intel has decided that that won't cut it anymore, "Now that we're at
     the head of the class and there's nothing left to copy"said Craig
        Barrett, chief operating officer of the Santa Clara, Calif.
    CompanyChief executive Andre S. Grove, quote -- "We're a big banana
    nowwe can't rely on others to do our research and develop for us" --
   end quote. I hope you can see from that why that would stimulate me to
    begin to wonder about wait a minute, you know, who's technology are
   they speaking about copying here, and I asked general counsel to do a
     rigorous and thorough investigation into the situation, which they
          recently completed before filing the suit last evening.
                                      
   [INLINE] How long do you expect the process of litigation go on; what
   level of legal expenses are you budgeting on a monthly basis to pursue
        this action; what potential defenses will Intel likely take?
                                      
     [INLINE] We're going to move this ahead as quickly as possibleIt's
    very difficult to say how long it will takecomplicated casewill take
                          more than a few months.
                                      
                  We'll budget whatever will be required.
                                      
               You'll have to ask Intel about their defenses.
                                      
    [INLINE] Was there ever any attempt to get some kind of compensation
                                from Intel?
                                      
    [INLINE] No discussions with Intel since 1991 on this topic. We only
    relatively recently became aware that they were unlawfully using our
                   patented technology in their designs.
                                      
               [INLINE] What kind of damages are you seeking?
                                      
    [INLINE] What benefits did Intel enjoy from unlawfully using Digital
            patented technology, and they're quite substantial.
                                      
   [INLINE] Considering that Intel's profits last year were something in
    excess of $5 billion, are you considering that or their profits over
       the last several years as their benefits from this technology?
                                      
   [INLINE] These matters are being developed in the course of litigation
   and I'm not going to speculate other than to comment that the numbers
                        are quite huge, it is clear.
                                      
   [INLINE] Was there an agreement in the 1990/1991 talks between the two
          companies not to use each other's intellectual property?
                                      
                      [INLINE] There was an agreement.
                                      
        [INLINE] What would be the ideal from Digital's standpoint?
                                      
    [INLINE] Intel must stop using Digital's technology in their current
   and future microprocessors, and that Digital shareholders be properly
    remunerated for the technology and advantages that Intel has enjoyed
                                  to date.
                                      
   [INLINE] So not a royalties stream going forward but some damages for
                the use of the technology up to this point?
                                      
   [INLINE] We're seeking damages and we're seeking an injunction against
                the ongoing use of our technology. [INLINE]
                                      
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I'm sure everyone is aware that all the references in .444 to Alpha being a 
"64-byte" architecture should really be a "64-bit" architecture.

|I'm sure everyone is aware that all the references in .444 to Alpha being a 
|"64-byte" architecture should really be a "64-bit" architecture.

At least the ratio was right as they talked about the 32-byte Pentium :-)

    Yeah, I can still remember the 32-bit (=4-byte) 4004...
    
    ;-)

    
    Pointer to Globe Story:  http://www.boston.com/globe/eco/14digital.htm

    Also check out the Vote on "Is Digital Inside" 
    
    -Pete

NEW YORK, May 14 (Reuter) - Digital Equipment Corp took out large advertisements
in two prominent newspapers to put its case before the public in its lawsuit
against Intel Corp . 

In ads placed in the New York Times and the Wall Street Journal, Digital said it
filed the patent-infringement lawsuit "because technology is so vital to our
business" and it needed to protect its patented technology. 

In the lawsuit filed Tuesday in U.S. District Court in Worcester, Mass., Digital
claimed that Intel, which supplies between 80 and 85 percent of the chips used
in the world's personal computers, infringed on 10 Digital patents in its
Pentium processor chips. 

"For Digital, the rule is always simple: Never forget that customers have other
choices," the advertisement read. "In fact, other choices are really what good,
healthy competition is all about. And, if competition is going to remain both
good and healthy, then it also has to be fair." 

"We don't mind competing against anyone's technology -- except our own," it
added.

Have those ads shown up on
	www.ads.digital.com
yet?

Re .450, .452

try this one:

http://www.boston.com/cgi-bin/btally.cgi?digital

-Doug

    ...or just click on the "Vote" icon in the main Globe article on the
    suit.

The IBM advertisement I got at the bottom of the tally page borders
on the sublime.

    re: .444
    
    This appears to be a public domain document that states our position and 
    reason quite well, so there's no issue with sharing this with
    customers, is there?
    
    Steve?

    As I recall, I pulled it off of "TechWeb" (?)
    
    It's an editted transcript of the press con-call, so there isn't
    anything 'secret' about it. However I don't know what the Ts&Cs 
    for the "TechWeb" site are (ie re-use, copyrights, etc).
    
    Dave

I'd just point 'em at http://www.ads.digital.com/ and have 'em click 
on the "Message" button.  That way they'll get the official party 
line, no culpability on your part.

Here's the official Intel response, from their web site:

Intel Corporation Says Its Products Do Not Infringe On DEC Patents

SANTA CLARA, Calif., May 14, 1997 -- Based on a preliminary analysis of the
claims, Intel Corporation today said it does not believe any of its products
infringe on patents asserted by Digital Equipment Corporation (DEC) in a suit
filed yesterday. Intel intends to vigorously defend itself against the suit.

DEC has stated that technology is vital to its business. Technology is vital to
Intels business as well. Over the past three years, Intel has been issued
nearly 1,000 patents for semiconductor, microprocessor and other technologies.
In conjunction with this effort, during that same period, Intel has spent over
$4 billion for research and development.

Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer, networking, and communications products. Additional
information is available at http://www.intel.com.

        Digital Plods Despite Great Technology
        By Leslie Gevirtz 
    
        BOSTON, May 14 (Reuter) - Digital Equipment Corp has great
        technology but "lousy" marketing practices and a plodding
        corporate culture that suffers "analysis paralysis" in a
        high-speed, high-tech market, analysts said Wednesday. 
    
        For a company with $14 billion a year in revenues, Digital
        is slow to react to change, they said. This could explain, in
        part, why the com[sentence cut off in release].
        
        Digital's problems stem from "not moving with the
        market...you have to move very quickly in this market and they
        didn't," said Forrester Research analyst Jon Oltsik. 
    
        Megan Graham-Hackett, an analyst with S&P Equity, noted
        Digital's technology "has always been good, but they've been
        lousy at marketing it." 
    
        John Hancock analyst Anurag Pandit said marketing and chip
        design "have to come together. Part of the problem is that you
        have to see your place in the evolution of technology and see
        who is going to develop software at the time you produce your
        chip. 
    
        "If they don't come together at the same time," Pandit
        said, "then it doesn't matter." Digital's "Alpha is good chip,
        but there was just no software for it," Pandit said. 
    
        Digital filed suit against Intel Monday, alleging that the
        company's Pentium, Pentium Pro and Pentium II chips infringe on
        patents Digital was awarded for its own Alfa chip. Intel, the
        world's largest computer chip maker, said on Wednesday it did
        not believe the Pentium infringes on Digital's patents and
        reiterated it would vigorously defend itself. 
    
        Digital Chief Executive Officer Robert Palmer has been
        praised for downsizing the company to the point where it now
        has about half the employees it once did. Palmer has also sold
        off many of the Maynard, Mass.-based firm's units. 
    
        "But the problem Palmer faces is that he hasn't really
        changed the climate at Digital," Oltsik said, describing the
        corporate culture as being very "analysis-paralysis oriented in
        an industry where you have to move very fast. Digital does not
        respond to market trends like the others do." 
    
        He pointed to Sun Microsystems , Compaq and
        IBM which are all doing "a lot of business. 
    
        Digital, on the other hand, has not been able to capitalize
        on its vast technical assets, he said. 
    
        "This is a technical business, but you have to be able to
        articulate a business justification for the technology and any
        time they're asked, they just respond with bits and bytes,"
        Oltsik said. 
    
        The analysts said they believed there must be something to
        Digital's suit. All said they believe Digital must have done
        its due diligence and filed the suit after a great deal of
        thought because Digital and Intel are not only competitors, but
        also suppliers and customers of each other. 
    
        Digital spokesman Dan Kaferle said Wednesday his company
        expects the suit to "run a year or two. We're in this for the
        long haul. We're prepared to take it to a successful
        conclusion." 
    
        Digital's Intel-based machines running NT outsell its Alpha
        computers nine to one, according to the Stamford, Conn.-based
        Gartner Group. 
    
        Will the suit staunch the flow of Intel chips to Digital's
        doors? 
    
        "We have long-term supply arrangements with Intel," Kaferle
        said. "And we expect that they will be honored. This is a legal
        matter, not a commercial matter. And we will continue to do
        business with them." 
    
    	Reuters

    if our marketing is so bad, how come EVERYONE believes that we have
    great technology?

    The problem is not in getting people to believe we have great
    technology. The problem is getting people to believe our
    great technology is the best solution for their problem.

    Right.  Everyone know that Mercedes is *the* standard of excellence. 
    So why isn't everyone driving one?
    
    jeb
    

                          [Image] [Image] [Image]

                                [TIME Logo]

MAY 26, 1997 VOL. 149 NO. 21
----------------------------------------------------------------------------

BUSINESS

CHIP OFF THE OLD BLOCK?

INTEL MAY BE INSIDE MOST PCS, BUT A LAWSUIT CLAIMS THAT DIGITAL'S TECHNOLOGY
IS POWERING THE PENTIUM

BY MICHAEL KRANTZ
----------------------------------------------------------------------------

Behind every great fortune," Balzac wrote, "there is a crime." That's the
contention of the stunning lawsuit filed last week by Digital Equipment
Corp. against microchip giant Intel. The great fortune in this case comes
courtesy of the Pentium microprocessing chip, which runs 85% of the earth's
personal computers and helped feed Intel $6.45 billion in revenues in the
first quarter of 1997 alone. The alleged crime is Intel's "willful
infringement" on 10 Digital patents in building the Pentium series. And the
suggested punishment: damages that could run into the billions and an
injunction against continued use of Digital technology.

Digital's surprise assault was impeccably timed: the previous week Intel had
celebrated the launch of next-generation chip Pentium II. And the day of
Digital's suit, microprocessor upstart Cyrix quietly filed its own
patent-infringement claim against Intel. Digital followed a day later with
full-page ads in the Wall Street Journal, New York Times and San Jose
Mercury News. Wall Street took the bait, wrist slapping Intel's soaring
stock down $6 and backslapping Digital up $2 in the belief that the
microchip David wouldn't rile Goliath unless it had a really, really good
case.

But by week's end analysts were asking whether the Digital action was an
honest plea for justice or just the bared-fang attack of a cornered and
wounded animal. The tottering hardware giant had bet heavily on its $2.5
billion Alpha microprocessor to return it to prosperity. Alpha is
unquestionably the fastest chip on the market, but its speed hasn't overcome
Intel's marketing clout. In 1996, according to Scottsdale, Ariz.-based
Mercury Research, Intel shipped some 65 million Pentium chips, or 76% of the
microprocessor market, compared with 200,000 Alphas. And this year looks
grimmer still: 18 million Pentiums shipped through March, to 60,000 Alphas.

Two months ago, rival Hewlett-Packard allied with Microsoft to push the
software giant's Windows NT program into corporate servers, the machines
that link large computer networks. In 1995 Digital had cut its own Microsoft
deal, looking to the burgeoning NT market to fuel its growth. Instead, it is
losing ground in a market already dominated by Intel, rather than Digital,
chips.

With the ramparts collapsing around him, Digital CEO Robert Palmer must have
seen little choice but all-out attack. The lawsuit claims Intel infringed on
10 Digital patents related to Alpha and other chips--though Palmer doesn't
claim this piracy occurred during negotiations between the companies in 1990
and '91. Intel was then considering licensing Alpha technology for its
next-generation chip; after both companies signed a confidentiality
agreement, Digital revealed the Alpha design. But the talks fell apart,
and Pentium, sans Alpha, went on to become the soul of the new PC.

By 1995 Palmer was noticing reviews of Intel's new Pentium Pro line that
found it strikingly--even suspiciously--improved over its Pentium forebears.
Intel itself provided the most damning hints that it had leaned on its
competitors for the upgrade. "There's nothing left to copy," said chief
operating officer Craig Barrett in an incendiary Wall Street Journal article
in August 1996. "We're a big banana now," noted CEO Andrew Grove. "We can't
rely on others to do our research and development for us."

Irritating though such glib sentiments might be to a vanquished rival--and
there are many in Silicon Valley who would just love to see something nasty
happen to Microsoft and Intel, if only for the change of pace--such bluster
hardly constitutes proof of illegal behavior. "I don't think there's any
question that the suit is a negotiating ploy," says Mercury Research analyst
Mike Feibus. The current industry wisdom is that Digital's aim is to gain an
out-of-court settlement that would give it a foothold in Intel's
fortunes--either a cross-licensing agreement granting access to Intel
innovations for Digital products or a role in the development of Intel's new
64-bit chip, code-named Merced and expected in 1999. "This is a serious
issue," Digital's chief technology officer Bill Strecker insisted to TIME.
"Our intention is to take this case through to trial." An Intel spokesman
says the company is innocent and will defend itself with all due vigor.

The case, however, is considered unlikely ever to reach a jury, which would
be about as capable of unraveling the programming parentage of a modern
microprocessor as it would be of figuring out which Sierra mountain stream
was the source of a glass of water taken from San Francisco Bay. In fact,
some observers think the suit's lasting legacy could well be revision of a
body of patent law increasingly inadequate to handle the staggering
intricacies of digital technology.

"The microprocessor is the most complex man-made creation in history," says
Michael Slater, principal analyst for MicroDesign Resources, based in
Sebastopol, Calif. "Everything is built on everything that went before. It's
a continuous stream of new ideas...but none of these ideas are broad. The
broad ideas are almost all IBM's." Hey, maybe Big Blue ought to be calling
its lawyer too.

--Reported by Daniel Eisenberg/New York

time-webmaster@pathfinder.com

[Pathfinder Navigation Bar]

"
An article about Providence Capital's Herbert Denton titled "Be not a 
wimp" in the latest Forbes states

	Denton plans to meet on June 3 with shareholders
	representing a third of the stock of Digital Equipment
	Corp.  Denton says he wants to get information about
	the company's high-speed Alpha chip.  But there are
	bigger assets, like Digital's service organization.

Denton's MO, according to Forbes:

	A typical Providence foray begins with another investor
	tipping Denton off to what he calls "strategically
	misdirected companies with moribund stock prices."
	Providence then puts together a research report that
	often recommends carving up the company.  The Denton
	contacts the company's largest shareholders and later
	its board of directors.  If management doesn't agree
	to meet with the large shareholders to discuss plans
	for improving the company's stock price, Denton
	assembles a slate of insurgent directors.
"

    
    Is it possible to get the text of Wall Street Journal article that Bob
    mentioned in his press conference in regards to the Intel lawsuit?
    
    Peter

The Best of Massachusetts Business as ranked annually by the Boston Globe.
The full story for 1997 is online at http://www.boston.com:80/globe/100/97/

Digital slipped off the list (was #52 in 1996, off the list in 1995)

The top 10 for 1997:

 1. TJX Cos.
 2. Boston Scientific Corp.
 3. Cascade Communications Corp.
 4. Parametric Technology Corp.
 5. Wyman-Gordon Co.
 6. ACT Manufacturing Inc.
 7. Fleet Financial Group Inc.
 8. Hologic Inc.
 9. Staples Inc.
10. PictureTel Corp.

Digital is mentioned and does make a few of that undesirable lists.
Below are the search results for "Digital":

 1. Chart : TOP 10 IN LOSSES 
 2. Chart : NOSEDIVES 
 3. Chart : BIGGEST INDUSTRIAL COMPANIES 
 4. Chart : THE MARKET VALUE 100 
 5. Chart : TOP EMPLOYERS 
 6. Chart: THE SALES 100 
 7. Service, industries, siphon job market 
 8. Rollercoaster to success 
 9. Breaking the tape 
10. In market heft, there's Gillette -- then the others 
11. Among the giants, 1996 was a year to buy or be bought 
12. Profit pedulum swings for Polaroid and Digital 


Last year's #1 company (Teradyne) also did not make the Globe 100 this year.

-Jeff
 

Check out the story at http://www.hrgresearch.com/ or directly at
http://www.hrgresearch.com/html/body_digital_vs_intel.html

The summary is:

  At first blush, Digital's shot across Intel's bow is the marketing Play of the
Day. DEC already has reaped tremendous media coverage from the event--and the
May 1 followup ad in the Wall Street Journal didn't hurt, either.

  Unless Digital stays the course with an aggressive and proactive campaign to
reach Key Influencers, the firm may find that the legal route is replete with
punji stakes. SKD believes that the pundits in the trade and business press will
conclude that "DEC no longer can compete with Intel on the technical playing
field, and thus is shifting the battle to the courts." Nothing could be further
from the truth, but it remains incumbent on Digital to insure that its position
is not eroded by the vicissitudes of Monday morning quarterback-cum-pundits or
by the tendentiousness of the trade press.

From the VNS archives:
http://expat.zko.dec.com/htbin/vns_archive?3803#VNS_COMPUTER_NEWS

 Digital - Files big patent suit against Intel
        {The Wall Street Journal, 14-May-97, p. A3}

I think .466 (and I'll bet a few others) would like to see the August 26, 1996
WSJ article referenced in
http://www.hrgresearch.com/html/body_digital_vs_intel.html from which I quote:

    Mr. Palmer quoted a passage from the Corporate Focus feature in the
    August 26, 1996 Wall Street Journal. In the article, entitled
    "Intel Shifts Its Focus To Long-Term Original Research," Intel COO
    Craig Barrett is quoted as saying, "Now that we're at the head of
    the class and there's nothing left to copy."  Said CEO Andy Grove,
    "We're a big banana now... we can't rely on others to do our
    research and development for us."

    
    re .-1
    
    The 100,000$ question ???
    
    Why in the world would INTEL executives say those statements in the 
    first place ?????    What where they thinking ????  They should of knew
    better that those statements would come back and haunt them.
    
    

>>I think .466 (and I'll bet a few others) would like to see the August 26, 1996
>>WSJ article referenced in
>>http://www.hrgresearch.com/html/body_digital_vs_intel.html from which I quote:
>>
>>    Mr. Palmer quoted a passage from the Corporate Focus feature in the
>>    August 26, 1996 Wall Street Journal. In the article, entitled
>>    "Intel Shifts Its Focus To Long-Term Original Research," Intel COO
>>    Craig Barrett is quoted as saying, "Now that we're at the head of
>>    the class and there's nothing left to copy."  Said CEO Andy Grove,
>>    "We're a big banana now... we can't rely on others to do our
>>    research and development for us."

    Correct this is the article I was hoping to get the full text version
    of. 
    
    -Pete

The August 26, 1996 Wall Street Journal article referred to by Mr. Palmer
may be found at:

	http://www.rimatech.com/html/intel1.html

Ram

    I thought I read over the weekend that DIGITAL hired the same patent
    lawyer that Polaroid used in their successful suit against Kodak. 
    Anyone know where that news report is?
    
    Mark

Check out 13.470  
http://www.hrgresearch.com/html/body_digital_vs_intel.html

Or	
http://weblib.ako.dec.com/1stbin/readstry.exe/FIRST/970521/1/1/20/10 

Date: Tuesday, May 20, 1997 
Source: Electronic Engineering Times 

"
Clearly, Fish & Neave is a powerful asset. Fish & Neave attorney Herbert
Schwartz, who is leading Digital's legal fight, was a chief litigator on
the Fish & Neave team that won the biggest technology patent lawsuit in
U.S. history-the action in which Polaroid successfully sued Eastman Kodak,
forcing the latter to withdraw from the instant-photography market.  
"



http://weblib.ako.dec.com/1stbin/readstry.exe/FIRST/970521/1/1/20/11
DIGITAL HIRES A 'STAR' FOR INTEL LEGAL BATTLE
Date: Tuesday, May 20, 1997 
Source: SAN JOSE MERCURY NEWS 

MAYNARD, MASS. - SAN JOSE MERCURY NEWS from Dialog via Individual Inc. :
Digital Equipment Corp. hired for its fight against Intel Corp. the lawyer
who helped Polaroid Corp. win a landmark damage award from photography
rival Eastman Kodak Co. 

Herbert Schwartz, a partner with New York's Fish & Neave, developed the
legal strategy that drove Kodak out of the instant photography business. In
1991, Kodak paid Polaroid $925 million, including interest, to satisfy the
judgment against it. 

There is very intersting report done by TBR.  It is posted at
	http://weblib.ako.dec.com/TBRI/Digital/Latest/report.htm

Here's an extract from it.

12-MONTH OUTLOOK 

     Declining revenue growth to $13 billion for 1997. 
     Digital headcount population will reduce to 45,000 by the end of 1997. 
     Digital will sell-off Fab 6 and get out of the Alpha fab business. 
     UNIX Workstation share will drop to 5% or less by end of 1997. 
     #5 in Workstations after Sun, HP, SGI, and IBM. 
     Ships systems based on the next generation Alpha processor by
	mid-1997. 
     Ship $3 billion in Alpha systems in 1997. 
     Alpha server systems growth will be flat for 1997. 
     PC volumes will recover and grow 5% year over year for 1997. 
     Will get out of the portable and desktop PC manufacturing business in
	1997 and begin outsourcing. 
     Operating income will rise to the 5% range by year-end 1997. 
     Gross margins will stay in the 31% - 34% range throughout 1997. 
     Increased emphasis on fixing channel problems. 
     Digital will license Java technologies. 
     Windows NT will become the volume operating system of choice on the
	Intel platform. 

    >Will get out of the portable PC... manufacturing business
    >and begin outsourcing.
    
    Pretty safe guess (DIGITAL has never manufactured a portable).
    ;-)

    Didn't we already announce that we 'd licensed Java (on Alpha *and* on
    StrongArm)?
    
    There's another way-out one in there but I mustn't comment...
    
    Who writes this stuff ? More importantly, who believes it ?
    
    regards
    john

                     
    
                    Digital suit trouble for
                    Intel? 
                    By Brooke Crothers and Jim Davis
                    May 23, 1997, 12:30 p.m. PT 
    
                    Intel (INTC) may be in for a tougher battle with
                    Digital (DEC) over alleged patent infringements than
                    it first appeared, according to legal experts and a
                    preliminary report from a major marketing research
                    firm. 
    
                    Earlier this month, Digital Equipment filed a lawsuit
                    in the U.S. District Court in Worcester,
                    Massachusetts, charging Intel with "willful
                    infringement" of ten patents on Digital's
                    microprocessors. 
    
                    Of the ten claims that Digital filed, there is a
                    significant chance that at least one and possibly
                    more of the claims will be upheld, according to
                    some independent legal experts. 
    
                    And even just one could throw a wrench into the
                    works for Intel as it prepares to ramp up
                    production for a whole new series of chips later this
                    year. 
    
                    If a judge grants Digital an injunction against
                    shipment of the chips cited in the claim, though
                    unlikely, it could throw off Intel's carefully planned
                    roll-out and upgrade schedule. If the claims that
                    Intel infringed the patents are proven, a more likely
                    scenario, Intel could suffer a large monetary
                    penalty, according to experts. 
    
                    Intel could not be reached for comment. Intel is an
                    investor in CNET: The Computer Network. 
    
                    Jonathan Retsky, an intellectual property lawyer
                    with Brinks, Hofer, Gilson & Lione, also a former
                    microprocessor designer, believes that Digital's
                    claims may be valid for several of the patents. 
    
                    And if the case actually makes it to court, Retsky
                    added, Intel will be working at a disadvantage.
                    Juries commonly side with the patent holder,
                    meaning that "it is almost impossible for Intel to
                    come out completely unscathed," Retsky says. 
    
                    A preliminary report from a marketing research firm
                    obtained by CNET's NEWS.COM says that Intel
                    may well have infringed on Digital's patents. 
    
                    Because the report is unfinished and still subject to
                    change, the author requested anonymity. But the
                    existing version of the report says that Digital's
                    history adds credibility to its patent claims. The
                    company's semiconductor group has been involved
                    in high-speed, single-chip computer design since the
                    heyday of its VAX line in the mid-1970s. 
    
                    Digital's engineers were dealing with high-speed
                    processor issues several years ahead of everybody
                    else and its trailblazing netted several patents
    related
                    to the implementation of fast processors. The
                    company's current Alpha architecture is a
                    continuation and evolution of this original design
                    strategy. 
    
                    The report also examines the Digital claim that Intel
                    intentionally misappropriated its technology after
                    exploring the possibility of licensing the Alpha
                    architecture during a series of discussions in 1991. 
    
                    Many observers think that Digital will have a hard
                    time proving the allegation that Intel stole
                    technology deliberately. A more likely possibility is
                    that Digital could receive "reasonable royalties,"
                    says Annette L. Hurst, a lawyer specializing in
                    intellectual property and antitrust litigation and
                    counseling at Howard, Rice, Nemerovski, Canady,
                    Falk, & Rabkin in San Francisco. 
    
                    Both Hurst and the report say that there are several
                    ways in which Intel might have ended up
                    inadvertently infringing on Digital's patents. For
                    example, an Intel engineer could have been involved
                    in evaluating the Alpha technology and later worked
                    on either the Pentium Pro or Pentium II design,
                    thereby using a similar concept in subsequent work.
    
                    Intel and Digital engineers could also have come up
                    with similar solutions independently of each other. If
                    this is the case, the first inventor of the device is
                    protected by patent law, even if the latecomer
                    developed the technology independently. 
    
                    The preliminary report outlines several options for
                    Intel if it ends up faced with a lawsuit. 
    
                    First, it could countersue. Intel could find patents
                    that Digital infringes upon--a likely possibility
                    according to the report and industry analysts--and
                    then use these to negotiate a cross-licensing
                    arrangement. This would avoid the headache of a
                    court trial and cost less than a monetary settlement,
                    the report notes. 
    
                    Intel could also just try to settle right now, but the
                    tone of rhetoric from both parties so far makes this
                    seem an unlikely possibility, the report says. 
    
                    Long-term, many different scenarios could arise the
                    report explains. For example, if Digital were to be
                    acquired by some other company, Intel could make
                    a bid to buy its patent portfolio and put the issue to
                    rest permanently. 
    
    
    

    re: .481
    
    The heyday of the VAX was the mid-70s ?????
    
    Hope they did better on the rest of their research...
    

I'm glad to hear that *someone* is getting the big
shareholders together to talk about what to do with Digital.
I hope the result is several board members take a hike as
well as Palmer.  get good marketing program in place and
clean out the rest of the deadwood management...

    re. 483
    
    The question is, where will it lead? There is no reason to believe that
    what you hope for is what will happen. They may elect a pack of asset
    strippers who flog off the family silver and leave the rest to go bust.
    I think we should make our voice heard.
    
    ..Kevin..

    re. .483
    
    >get good marketing program in place.
    
    Arye Lyundyke (sp?) has the digital logo on the front hood nearest the
    driver in the Indy500.
    
    Currently in 2nd place after 46 laps.

    Um... Indy advertisers are royally getting screwed with negligible
    TV eyeballs.

    In any case, Luyendyk won.

    let's hope for a good picture on the nightly news
    
    Mark

    RE: .486
    
    "Negligible TV eyeballs" or not, on Monday people mentioned to me, when
    they found out I worked for Digital, that they saw the logo on the car
    before the race was scrubbed.  I remembered thinking that our marketing
    has, in fact, been changing recently, and for the better.
    
    Keep it up.
    
    Chuck

|   SANTA CLARA, CA, May 28, 1997 - Intel Corporation said today that it
|   has filed a suit against Digital Equipment Corporation (DEC) for
|   violation of intellectual property rights for refusal to return
|   certain documents as required by contract. The suit was filed in the
|   U.S. District Court in San Jose, California.
 
Are they shooting from the hip, or what?

    NEW YORK, May 28 (Reuter) - In an escalation of the patent
    dispute between Intel Corp and Digital Equipment Corp ,
    Intel said contracts to supply its Pentium family of chips to
    Digital run out after the third quarter of 1997.
        The assertion was made in a May 15 letter by Thomas Dunlap,
    Intel's chief legal counsel, addressed to Thomas Siekman,
    Digital's chief legal counsel, that was filed as part of an
    Intel suit alleging breach of contract by Digital.
        In the letter, Siekman said his company took issue with
    recent statements by Digital officials that it has
    "long-standing supply agreements with Intel."
        Digital officials made the comment two weeks ago in the
    course of announcing a patent infringement suit against Intel
    alleging that Intel had misappropriated patented technologies
    used in Digital Alpha chips for use in Intel's Pentium family.
        In a letter dated May 20, Digital responded to Intel by
    saying that Digital has had a direct purchasing relationship
    with Intel for more than two decades and that it had extended
    its purchasing agreement last year until June 30, 1999.
        But an Intel spokesman said Wednesday his company continues
    to believe that its contracts to supply Pentiums to Digital
    only extend through the third quarter of this year.

    
    latest ... getting juicy ...
    
    Headline: Digital (NYSE:DEC) to make statement within hour
    
    ======================================================================
        BOSTON, May 28 (Reuter) - Digital Equipment Corp on
    Wednesday said it would release a statment within an hour about
    its contractual agreement with Intel Corp (NASDAQ:INTC) and a
    counter-lawsuit filed by Intel.
        "There will be a statement within an hour," a spokeswoman
    for Digital told Reuters.
        Intel said on Wednesday it filed a lawsuit against Digital,
    alleging Digital has refused to return confidential
    information. Intel also said its contract to supply its Pentium
    family of chips to Digital expires after the third quarter of
    1997, rather than June 30, 1999, as Digital has asserted.
    
     Copyright 1997, Reuters News Service
    

   DEC's respond to Intel's law suite:

   MAYNARD, Mass., May 28 /PRNewswire/ -- Digital Says Intel
   Lawsuit a
   Diversion From Real Issue of Unlawful Patent Infringement
   Statement by Thomas
   C. Siekman, DIGITAL general counsel:

   "Although Intel's lawsuit is without merit and unjustified, we
   expected
   it. They are asking us to return to them materials which they shared
   with
   DIGITAL and other systems vendors who design Intel processors
   into their
   products. We also find it curious that they are asking for damages
   from a
   company that BUYS product from them."

   "Intel executives have made public statements that they will not
   allow our
   lawsuit against them to interfere with the business relationship
   DIGITAL and
   Intel have had for some time. This counter suit is nothing more
   than a thinly
   veiled attempt to cause concern among DIGITAL customers. We
   expect to have
   timely access to Intel technology. There has been no disruption of
   supply of
   product from Intel and we expect none in the future. We have
   product
   agreements with Intel that run until 1999."

   "The simple fact is that our suit was filed because we discovered
   that
   Intel, without permission, is using DIGITAL patented technology to
   gain
   significant performance improvements in their products and we
   want them to
   stop. Since Intel's use of our technology is unlawful, they are
   attempting to
   threaten and silence us. It won't work and we are confident that we
   will
   win."

    re: .486
    
    The information I have is that we did NOT get 'royally screwed' by the
    Indy500 delays - our ads ran all 3 days of the race and for two of
    those days the audience was near what was promised - so in total we
    actually got more 'eyeballs' than we were promised on a household
    rating basis.  We'll know in a week or so if we did not get the type of
    audience we wanted, but the totals look good.
    
    Bill

    .496
    The Boston Globe had the ratings for the Indy is yesterday's paper...
    5.something for before the rain delay, dropping to 2.something
    after the rain delay.  Not very good numbers.  Tiger Woods in
    the Colonial did 9+, and the three evening news are all above 6.
    
    You saw different ratings numbers?
    Kratz

The Boston Globe also ran an article on the unhappy Soap fans. An excerpt is
included below.

TV & Radio: Indy washes out soaps; fans fume

 By Frederic M. Biddle, Globe Staff, 05/28/97 

 Erica Kane fans didn't gladly suffer yesterday's
 hit-and-run by the Indy 500. Twice rained out, the
 Sunday event preempted ABC's daytime
 programming for 2 1/2 hours Monday and from
 noon until midafternoon yesterday. Cars raced
 round and round and round, and commercials pushed
 Coors and Valvoline for a male audience that
 presumably wasn't home. 

 By day's end, soap fans were in full revolt:
 WCVB-Ch. 5 switchboards were swamped by more
 than 1,000 protest calls, said Elizabeth Cheng, the
 station's programming director, ``more in that
 amount of time than in any other case in recent
 memory.'' 

   First! for Mosaic
   
    COMPUTERS - UNION CALLS FOR DIGITAL TO SPLIT JOBS OF CHAIRMAN AND CEO 
    
     _________________________________________________________________
                                      
   SOURCE: The Memphis Commercial Appeal from Dialog
   
   DATE: g
     _________________________________________________________________
                                      
   MAYNARD, MASS. - MEMPHIS COMMERCIAL APPEAL from Dialog via Individual
   Inc. : Digital Equipment Corp. is facing a shareholder proposal from
   the Communications Workers of America that would split the job of
   chairman from that of the chief executive.
   
   The telecommunications union, in a May 20 letter, said splitting the
   responsibilities of Digital chairman and chief executive Robert Palmer
   would improve oversight and reassure investors that the board is
   getting unbiased information.
   
   The CWA, which owns 48,000 Digital shares, said it is ''imperative''
   that the board question management, given the company's ''dismal''
   performance.
   
   The CWA request is the latest of five proposals Digital has received
   from investors impatient with the 29 percent decline in company stock
   during the past year, including one proposal asking that Digital put
   itself up for sale. Digital has lost money in five of the past six
   years amid increased competition and poor marketing. Investors are now
   organizing to discuss how to turn around the nation's fourth-largest
   computer maker.
   
   ''Shareholders and financial analysts have a reduced degree of
   assurance that directors will be independent and effective'' if the
   two top jobs are held by one person, the CWA wrote in its proposal.
   
   Digital spokesman Dan Kaferle declined to comment on the proposal and
   said company workers aren't represented by the CWA.
   
   Digital's shares, which have fallen by more than half from their
   recent high of $76.50 in February 1996, rose $1.25 to $37.25 Tuesday
   in late trading of 2.99 million shares, more than the three-month
   daily average of 1.52 million.
   
   The CWA has embarked on an effort to increase organized labor's
   presence in the American computer industry, where union jobs are few.
   The union participated in a conference this month in Washington at
   which Digital workers spoke of their experiences as the company
   slashed the payroll to about 55,000 from a peak of about 125,000 at
   the end of the 1980s.
   
   A Digital employee in Germany, Christian Brunkhorst, has submitted a
   proposal that would require the company to include an employee on the
   board. Digital's workers would chose that person, according to the
   proposal from Brunkhorst, who heads a German labor group at Digital
   and owns more than $1,000 of Digital stock.
   
   In recent weeks, individual shareholders of Digital have filed
   proposals that include asking the company to consider putting itself
   up for sale; removing an anti-takeover defense from Digital's charter;
   and changing the terms of board members so that they all expire at the
   same time. They will be voted on at the company's annual meeting,
   which is typically held in November.
   
   The proposals come weeks before some of the company's largest
   investors will meet in New York to consider ways of boosting Digital's
   stock. On June 18, institutional shareholders that own as much as a
   combined 40 percent of Digital stock will gather at a meeting
   sponsored by Providence Capital Inc.
     _________________________________________________________________
                                      
   [05-29-97 at 15:31 EDT, Copyright 1997, MEMPHIS COMMERCIAL APPEAL,
   File: d0529226.3ca]
     _________________________________________________________________
                                      
   Individual, Inc. 
   
    Copyright notice
    
   
    

    
    Yup - and the ratings the Globe shows for weekend sports on Mondays or
    Tuesdays are for Boston.  Boston is notoriously the first or second 
    worst of top 15/20
    markets for watching sports NOT involving Boston teams.  The only
    exception I am aware of is higher ratings for Golf here locally.
    
    Today's paper said the Networks believe a lot of hooky was played on
    Tuesday pm. I essence, the networks promised HH ratings of 6 or so -
    and delivered 10-12. 
    To the other point - we are on Golf through June. See Note 5027 for
    details in DIGITAL.
    
    Bill

    re: .500
    
>   The union participated in a conference this month in Washington at
>   which Digital workers spoke of their experiences as the company
>   slashed the payroll to about 55,000 from a peak of about 125,000 at
>   the end of the 1980s.
    
    Anyone know anything about this conference?

    Correct me if I am wrong....
    
    5/12	- Digital sues Intel for Patent infringement
    5/22 	- Herbert Denton to hold major shareholder conference
    5/20	- CWA calls for split of CEO and Chairman positions
    5/28	- Other claims by some of the Investors demanding Digital
    put itself on sale and to remove anti-takeover stand.
    
    There is also a call to change all or some of the Board members.  (I am
    not supporting either the Board members or others).  
    
    Looking at all the claims and suing and counter-suing - is there some
    POWER politics going on where in they would like to see Digital as a
    viable candidate for a complete wipe-out as a Computer leader or a
    hostile take-over.
    
    What I mean is - where was Herbert Denton, CWA, et all before we
    started this Suing process.  (Am I reading too much novels????).  I am
    not saying that Digital is going to win or lose - but look at how many
    major players are involved in stabbing us (or should I say - in
    bringing us down).
    
    What do you all think???
    
    J.

	I don't view it as them "stabbing us" as much as I view it
	as a bunch of investors who want a return on their investment.
	They see SUN, IBM, Microsoft, Compaq, et al posting record
	numbers and Digital still saying "we're on the track for success".

	I don't blame them. I'm pretty pissed off at our stock price
	too. Once it hits 50 (hahahaha), it's gone.

								mike

    re .503
    Perhaps shareholders realized they're invested in Bob's Alpha ego
    instead of the company, and the event on the 12th was enuf to
    cause them to act.  Worked for me.

Business Week, June 9th, 1997, full page article, p. 38

"SEETHING SHAREHOLDERS"
Digital's management may face a revolt

  The frustration felt by shareholders of Digital Equipment Corp. is
understandable.  Perennial turnaround schemes and management shakeups
have failed to restore earnings.  Sales of the ocmpany's Alpha computers
will probably be down for the quarter ending June 30, even as the rest of
the industry is booming.  Instead of delivering the $1 per share in
earnings for fiscal 1997 that CEO Robert B. Palmer promised last fall,
analysts say the company will bring in just 65 cents.  The company's
headline-grabbing suit accusing Intel Corp. of stealing Alpha-chip
technology may cost millions - without boosting Alpha's prospects or
Digital's.  Indeed, Intel countersued on May 28, hinting that Digital's
supply of Pentiums could dry up.
  All this has played havoc with Digital's stock, which was at 36 on
May 28, down 14% since Palmer became CEO in 1992 - a stretch in which the
Standard & Poor's 500-stock index has nearly doubled.  "The amount of
shareholder value lost in the last five years because there wasn't
somebody there creating pressure for effective change is staggering,"
says Robert A. G. Monks, principal of LENS Inc., a shareholder action
group.
  Now a would-be savior for Digital shareholders has surfaced.  Providence
Capital Inc., a small money-management firm with a history pf prodding
lackluster performers into action, says it has commitments from
institutional investors holding more than 30% of Digital's shares to
attend a meeting in New York on June 18 to discuss ways to "increase
shareholder value."
  Can Providence, which has only a tiny stake, organize Digital's
shareholders and get them to act on their dissatisfaction?  Providence
President Herbert A. Denton says "most of the major shareholders" have
agreed to come to his powwow.  But of Digital's eight largest shareholders,
five say they have no plans to attend the meeting and two decline to
comment.  Among top shareholders, only Prudential Investments, which
holds 4.4%, confirms that it will be there.  "What's to lose?" says
Thomas R. Jackson, portfolio manager of the Prudential Investments
Equity Portfolio.
  Even if Providence doesn't lead the charge, Digital shareholders are
increasingly restless.  Separate resolutions demanding that Digital
retain an investment banker to shop the company and rescind its poison
pill have been submitted by two individual shareholders and will appear
on Digital's September proxy statement.  Another proposal submitted in
late May by the Communication Workers of America, which holds 48,000
Digital shares, calls for splitting the job of chairman from that of
CEO.  "Does Digital manegement have a plan to preserve and enhance
shareholder value?" asks one large institutional holder.  "If not,
the board has to take some action."
  Shareholders may have a new concern.  The patent suit against mighty
Intel - a bold move that lifted the Alpha's chip profile - may backfire.
In the countersuit to Digital's patent-infringement action, Intel demands
that Digital return confidential documents spelling out Intel product
plans.  "When a company is questioning out integrity, we don't feel 
comfortable giving them our most advanced confidential materials,"
says an intel spokesman.  More ominous was the news from Intel that
Digital's contracts for Pentium-class microprocessors run out in
September, raising the possibility that Digital's $2 billion PC
business could face troublesome shortages.
  THE BOARD's SIN.  Digital calls the countersuit "nothing more than
a thinly veiled attempt to cause concern among Digital customers."
The company also says it has long-term contracts with its suppliers,
including Intel.  And Digital's executives have said repeatedly that
Intel risks violating antitrust laws if it slows or shuts off the
supply of Pentium chips to Digital.  But as a backup, Digital has signed
up to use the K6 chip from Intel rival Advanced Micro Devices (page 74).
  With all these issues swrling, the board that has stood by Palmer and
his management is coming under scrutiny.  Thomas P. Gerrity, a Digital
director who is dean of the Wharton School, wound up on a list of
"America's least valuable directors" compiled by the Brotherhood of
Teamsters.  His sin: voting to pay Palmer $8.3 million in salary,
bonus, and options last year.  That's after Palmer has cut the workforce
in half and racked up $2.6 billion in losses since he took charge in 1992.
Gerrity wasn't available for comment.  But his seat - and Palmer's -
is probably getting awful hot.  By Paul C. Judge in Boston and
Andy Reinhardt in San Francisco.

          June 2, 1997

          Digital May File Antitrust Suit Against Intel

          By LAURENCE ZUCKERMAN

          [A] s a legal battle between Intel Corp. and Digital
              Equipment Corp. escalates over what Digital contends
          is a violation of its patents, the next phase could be
          an antitrust suit filed against the chip maker by
          Digital.

          At least that is what Thomas C.          ------
          Siekman, vice president and general      Today in
          counsel for Digital, strongly implied    CyberTimes
          in a previously undisclosed letter to
          his counterpart at Intel last week.      ARTICLES AND
                                                   COLUMNS
          The letter provides insight into the
          arguments Digital, the computer          Digital May
          maker, would most likely make as the     File Antitrust
          dispute between the two companies        Suit Against
          gains momentum. Digital's challenge      Intel
          could be the first serious antitrust     By Laurence
          claim against Intel, which dominates     Zuckerman
          the market for the silicon chips that
          act as the central nervous system of     It May Seem
          a personal computer.                     Like
                                                   Cyberbabble,
          "If they are going to pull the           but It's
          trigger on an antitrust case, they       Language
          will pull the trigger on everything      By Elizabeth
          they can," said Kenneth R. Adamo, a      Gibbens
          patent lawyer with Jones, Day, Reavis
          & Pogue in Cleveland. "They will try     Small
          to get the antitrust department of       Electronics
          the Justice Department interested. It    Company Does
          will be your classic high-stakes         Well As
          private antitrust suit."                 Computer
                                                   Giants Turn to
          That could give Intel the kind of        Outsourcing
          headaches suffered by Microsoft          By Tamar
          Corp., which has been the subject of     Charry
          several government antitrust
          investigations in recent years.          The CEO
                                                   Pitchman Comes
          So far there is no indication that       to the Net
          the Justice Department is taking an      By Stuart
          interest. A spokesman declined to        Elliott
          respond to a request for a comment on
          Friday.                                  High-Tech
                                                   Beauty Contest
          The battle between the two companies     Matches
          began in May when Digital surprised      Start-Up Firms
          the computer industry by filing suit     With Needed
          in federal court in Massachusetts        Capital
          saying that Intel had violated           By The
          Digital's patents to improve the         Associated
          performance of Intel's Pentium chips.    Press
          Digital is demanding that Intel stop
          using its technology and pay billions    Playing Cupid
          of dollars in damages.                   to the Already
                                                   Acquainted
          Intel responded last week by filing a    By Pamela
          breach of contract suit accusing         Mendels
          Digital of refusing to return
          confidential information about           Push
          Intel's coming products.                 Technology:
                                                   Digging In
          Writing the day after Intel's action,    Despite
          Siekman contended that Intel's           Criticism
          domination constituted a monopoly and    By Seth
          that Intel was thus obligated by         Schiesel
          federal antitrust laws to furnish
          Digital with the information.            Typo.net
                                                   Entrepreneurs
          -------------------------- "If Intel     Set Careless
          Digital appears to be      continues     Spellers
          arguing that Intel chips   in its        Straight
          are an "essential          pursuit of    By Thomas W.
          facility" to the computer  unlawfully    Holcomb Jr.
          industry.                  denying
          -------------------------- Digital       ------
                                     access to
          materials needed by Digital because      TODAY'S
          off Intel's market power, Digital        SECTION FRONT
          will respond as it believes
          appropriate," Siekman wrote.             SEVEN-DAY
                                                   INDEX
          Antitrust lawyers who reviewed the
          letter said that Digital appeared to     CYBERTIMES
          be arguing that Intel chips are an       FORUMS
          "essential facility" to the computer
          industry, much like a single concert     CYBERTIMES
          hall in a large city is essential to     NAVIGATOR
          the entertainment industry because
          there are no alternatives in that        ------
          market.

          But that may be difficult to prove in the case of Intel,
          which not only faces direct competitors for its Pentium
          chips from companies such as Cyrix and Advanced Micro
          Devices but also from companies such as Digital, IBM and
          others that offer chips with alternate designs.

          "There aren't many examples where monopolies have been
          found to have an essential facility that demands
          access," said Charles F. Rule, who headed the Justice
          Department's antitrust division in the late 1980s and is
          now a lawyer with Covington & Burling in Washington.

          Siekman also wrote that Intel, as a "monopolist," had no
          right to alter its relationship with Digital by
          demanding the return of confidential documents without
          "a legitimate business justification."

          But Rule said that Digital's initial lawsuit and its
          allegations that Intel willfully stole Digital
          technology could be reason enough to alter the
          relationship. "The justification is, 'We don't
          particularly like dealing with a company that is suing
          us,' " he said.

          Intel and Digital also disagree over Intel's obligations
          to supply Digital with Pentium chips, which are the key
          component in a line of computers that amounted to more
          than $2 billion in sales for Digital last year and is
          growing fast. Digital says that Intel is committed to
          supplying it with Pentium chips through 1999, while
          Intel says it is only committed to the end of September.

          A spokesman for Intel said that,       ------------------
          contrary to news reports last week,    Related Article
          Intel had not said that it would stop  Chip Dispute
          selling Digital chips. If it could     Between Intel and
          not reach a new agreement, he said,    Digital Escalates
          Intel might simply make Digital buy    (May 29, 1997)
          chips from an Intel distributor        ------------------
          instead of selling to it directly.

          Digital would likely argue that such a change is an
          abuse of Intel's power as a monopoly, even though Intel
          does not supply its chips directly to all the computer
          makers that are its clients.

          Or the arguments may never make it to court if the two
          companies decide to end the hostilities.

          "Antitrust can be a very powerful tool and present a
          fairly serious threat," Rule said. "But Intel has
          lawyers, too, and they will be able to assess this
          threat and respond."

          --------------------------------------------------------
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       re: .500,.502
    
    >   The union participated in a conference this month in Washington at
    >   which Digital workers spoke of their experiences as the company
    >   slashed the payroll to about 55,000 from a peak of about 125,000 at
    >   the end of the 1980s.
    
        Anyone know anything about this conference?
    
    Nope, but I will ask my friends. Yesterday I received my union
    newsletter (SIPTU) which carried an article on global works' councils.
    It seems that European Unions involved in the European works' councils
    are cooperating with Unions in the USA with the aim of establishing
    global works' councils, which would make a lot of sense to me. 
    
    It may be that something has come out of the visit of some European
    trade unionists/Digital employees to Maynard last November following
    their action at the shareholder's meeting. Management cold sholdered
    the delegation initially, but some eventually obtained a meeting with Bob
    Palmer. I would expect that any US Digital employees involved in this
    would be rather worried about 'coming out' on their participation in
    such conferences so they kept it to themselves. 
    
    Why not give the union a call and ask them about it?
    
    ..Kevin..    
    
             

    TIME 

    JUNE 9, 1997 VOL. 149 NO. 23 

    BUSINESS

    BIZ WATCH 

    ...

    YOU SANK MY BATTLE CHIP!

    Digital CEO Robert Palmer must have known that picking a fight with
    Intel might start an all-out war. Last week he got one.

    Two weeks after Digital sued Intel, claiming patent infringement, the
    microchip giant struck back with a devastating suit of its own,
    charging that Digital was misusing confidential information. Worse,
    Intel--which sold an estimated $150 million of chips to Digital in
    1996--threatened to choke off the vital supply. Wrote general counsel
    F. Thomas Dunlap: "It's unreasonable to think the relationship...can
    remain the same." In other words, let's starve the s.o.b.s.

    Intel, meanwhile, is battling more significant problems. On Friday the
    firm warned that second-quarter earnings were likely to be softer than
    expected. In response, the stock stumbled 7%. But insiders say the
    company is still seeing impressively strong orders for its new Pentium
    II chips. Given Intel's well-known penchant for strong second-half
    results, chip watchers expect a rebound. The champ, Digital is
    learning, is still the champ.

>    Two weeks after Digital sued Intel, claiming patent infringement, the
>    microchip giant struck back with a devastating suit of its own,

"Devastating" seems to be a bit strong.  The suit is about documentation.

    The interesting observation one can make about all these analysts is
    their perspective seems to be slanted by their geographical location.
    
    For example, northeast reporters' and analysts' (eg. Bostong Globe,
    TBRI) commentary is quite different from San Jose papers.
    
    - Vikas

    No love lost between Intel, Digital in these letters
    By Margaret Kane, ZDNN
                          
    An exchange of letters between attorneys for Digital Equipment
    Corp. and Intel Corp. shows how quickly Digital's patent suit
    against Intel turned against it.  Intel late yesterday filed a suit
    against Digital demanding the return of confidential documents
    related to upcoming processors, such as the Deschutes processor.
    Digital had received these documents under non-disclosure agreements.
    Intel today also made it very clear to reporters and analysts
    that its contracts to provide Digital with processors expire at
    the end of the third quarter.
    
    Following are excerpts from letters between F. Thomas Dunlap,
    Intel vice president and general counsel, and Thomas C. Siekman,
    Digital vice president and general counsel.
    
    May 15 letter from Dunlap to Siekman:
    In the past few days several of your senior executives have been
    quoted as saying that DEC has "long-standing supply agreements with
    Intel." We are not aware of any supply agreement between Intel and
    DEC with respect to Pentium, Pentium Pro or Pentium II processors
    other than our usual purchase order and acknowledgment process,
    which only covers sales through Q3.
    
    May 20 letter from Siekman to Dunlap:
    We are surprised by your inquiry regarding ... long-standing supply
    agreements between Digital and Intel ... The current BOA [Basic Order
    Agreement] was extended last year and will now expire on June 30, 1999.
    Digital senior executives have also expressed their intent that the
    patent infringement suit ... remain a technology dispute and that it
    not impact the commercial relationship between our two companies. 
    ... [Since] the filing of the lawsuit, Intel representatives have
    canceled several meetings with Digital personnel, including
    long-arranged meetings between engineers to review data connected
    with the "Deschutes" product introduction. Intel representatives ...
    have requested return of "Deschutes Yellow Book" materials. Ongoing
    review of this Yellow Book data is necessary to facilitate delivery
    of a Digital Deschutes-compatible product at the time of the official
    Intel product introduction.
    We assume that these recent actions are aberrations ...
    
    May 27 letter from Dunlap to Siekman: Intel is amazed that DEC
    continues to state that it expects the relationship to remain the
    same as it was before DEC filed the 10 patent lawsuits ... DEC's top
    executives went so far as to publicly allege that Intel has "copied"
    and "stolen" DEC's technology ... It is unreasonable to think that the
    relationship between the companies can remain the same in light
    of these unfounded public statements attacking Intel's
    integrity ...
    You apparently believe that Intel will continue to transfer its
    technology to DEC by continuing to provide Intel-confidential
    technical information ... These Intel assets are valuable Intel
    intellectual property and we certainly do not intend to provide
    them to DEC while DEC is suing Intel on DEC's intellectual property
    and accusing Intel of stealing its technology.
    Accordingly, your assumption that Intel's request that DEC return
    Intel's technology is an "aberration" is completely wrong.

    All 3 letters are at
    http://www5.zdnet.com/zdnn/content/zdnn/0528/zdnn0009.html
    
    Actual Text of May 27 letter from Intel to Digital
    
    May 28, 1997 2:45 PM PDT
    ZDNN 
    
    Thomas C. Siekman
    Vice President and General Counsel
    Digital Equipment Corp.
    
    Dear Mr. Siekman,
    
    Intel is amazed that DEC continues to state that it
    expects the relationship to remain the same as it was
    before DEC filed the ten patent lawsuit. As part of
    the unprecedented publicity campaign surrounding the
    suit, DEC's top executives went so far as to publicly
    allege that Intel has "copied" and "stolen" DEC's
    technology.
    
    As you well know, there are absolutely no allegations
    of copying or misappropriation of any DEC technology
    in the complaint. It is unreasonable to think that
    the relationship between the companies can remain the
    same in light of these unfounded public statements
    attacking Intel's integrity.
    
    Certainly the companies are involved in what you
    characterize as a "technology dispute" which DEC
    initiated by filing the patent lawsuit without any
    notice to Intel. You apparently believe that Intel will
    continue to transfer its technology to DEC by continuing to
    provide Intel confidential technical information,
    technical resources advance product samples and other
    data to DEC. These Intel assets are valuable Intel
    intellectual property, and we certainly do not intend
    to provide them to DEC while DEC is suing Intel on
    DEC's intellectual property and accusing Intel of
    stealing its technology.
    
    Accordingly, your assumption that Intel's request
    that DEC return Intel's technology is an "aberration" is
    completely wrong. Intel has the right under its
    non-disclosure agreements with DEC to terminate the
    agreements at any time and to demand the prompt
    return of all confidential materials provided to DEC
    under those agreements. The corporate NDA, dated
    February 1, 1991, for example, specifically states:
    
    "Either party may, at any time, cease giving
    Confidential Information to the other party without
    any liability or request in writing return of
    Confidential Information previously disclosed. . . .
    Either party may terminate this Agreement at any time
    without cause on notice to the other party. . . .
    In the event this Agreement is terminated, and the
    disclosing party so requests, the receiving party shall
    promptly return or destroy (and certify destruction of)
    all Confidential Information which it received from the
    disclosing party along with all copies which it made."
    
    The other non-disclosure agreements between Intel and DEC --
    including the June 1, 1991 corporate NDA, the September 5,
    1996 Restricted Secret NDA, the October 9, 1996 Restricted
    Secret NDA, and the January 18, 1996 Merced NDA -- have similar
    language. In accordance with the terms of these agreements,
    Intel is terminating all of the foregoing non-disclosure
    agreements with DEC and requesting that all of the Intel
    confidential materials received by DEC over the last several
    years be returned immediately. Your direction to DEC employees to
    retain the requested materials, and refusal to comply
    with our request, is an instruction to disregard the
    clear provisions of the non-disclosure agreements signed by
    the parties. I sincerely hope that you will reconsider
    and that DEC will honor its obligations under the terminated
    non-disclosure agreements. With that in mind, and to facilitate
    a prompt and orderly return of confidential materials, I have
    attached to this letter a list of documents transferred under
    non-disclosure agreements that Intel wants to be returned first.
    
    I would also like to call to your attention that the statements
    in your letter of May 20, and the public statements of the DEC
    executives concerning a "long term supply agreement" are false,
    or at the very least misleading. It is readily apparent that the
    Basic Order Agreement ("BOA") covers certain products listed on
    Attachment A as agreed by the parties from time to time. The
    question in my letter of May 15, 1997, was what "long term supply
    agreements" apply to Pentium, Pentium Pro or Pentium II processors,
    none of which are listed in that attachment. I would appreciate
    your response to this question.
    
    Intel intends to honor its existing contractual commitments to DEC.
    Due to current circumstances we will not be transferring additional
    technology to DEC. Please confirm that DEC will honor its
    obligations to return the requested materials to Intel.
    
                      Yours truly,
    
                      F. Thomas Dunlap Jr.
                      Vice President, General Counsel and Secretary
                      Intel Corporation