Dell Computer Corporation Fiscal 1999 in Review

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Computer Corporation,

fiscal 1999 was another

extraordinary year. We continued to extend the

capabilities of our customer-focused direct business

model, strengthened our reputation for product

and service leadership, and undertook the company’s

first global brand-advertising campaign.

Our use of the Internet to make it easier for customers

and suppliers to do

business with Dell,

and to help reduce

costs for us all, remains

among the most ad-

vanced in any industry.

For Dell

TO O U R CU S T O M E R S ,

S T O C K H O L D E R S , S U P PL I E R S A N D E M P L O Y E E S

1

MORTON L. TOPFERVice Chairman

MICHAEL S. DELLChairman of the BoardChief Executive Officer

KEVIN B. ROLLINSVice Chairman

We launched new initiatives inChina and Latin America, marketsthat offer exceptional opportunity forus. We grew at more than five timesthe global industry rate.

And a Fortune magazinesurvey l i s ted Del l No. 4 a m o n g A m e r i c a’s “m o s tadmired” companies.

Our operating performanceagain spoke for itself, withindustry-leading results in thethree priority areas: growth,profitability and liquidity. Netrevenue for the fiscal year rose48 percent to $18.2 billion.Net income increased 55percent to $1.5 billion, andearnings per share were $0.53,up 66 percent. During theyear, we generated $2.4 billionin cash from operations. Thecompany’s return on investedcapital, a key indicator ofv a lu e c r ea t i on , wa s 195 percent, easily the best in our industry. The value of Dell commonstock was up more than 300 percentduring the fiscal year.

Not surprisingly, our major competi-tors again tried to replicate portions ofDell’s business model, while wecontinued to set new standards acrossa range of industry measures. A good

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example: supply-chain management. Atyear end, we had only six days of supplyin inventory, a fraction of what is heldby indirect companies and their resellers.High inventory levels carry profound

implications for customers interms of cost, quality and rele-vance of technology. By usingthe Internet, in part, to bringsuppliers, Dell and our cust-omers closer together, we areachieving increasingly higherlevels of efficiency.

Our business grew signifi-cantly around the world lastyear. Net revenue increased46 percent in the Americas,58 percent in Europe and37 percent in Asia-Pacific/Japan—the last a regionwhere industry shipmentsactually were flat versus theprevious year. We likewise saw rapid expansion in all customer business units, ledby our Americas home and

small-business group, which achieveda 54-percent gain.

While the 24,400 people of Dell—8,200 of whom joined us during thepast year—are rightly proud of thecompany’s tremendous accomplish-ments in fiscal 1999, our futureabounds with potential. Retaining and

MARKET SHARE(PER INDUSTRY ANALYSTS)

2

NET REVENUE(IN B ILL IONS)

FY95 96 97 98 99

$12.3

$18.2

$7.8

$5.3

$3.5

FY95 96 97 98 99

5.9%

8.6%

4%

3%3%

notebook the “best portable PC ever.Still, enterprise and notebook systemsaccount for smaller portions of ouroverall business than the industryaverages, which means tremendous

opportunity remains. T h o u g h s a l e s v i a

w w w. d e l l. c o m r e a c h e d $14 million per day by the endof the fiscal year and accounted for 25 percent of our revenue in the fourth quarter, we believe the growing range of services Dell delivers through theInternet is equally compelling.We now host more than 15,000Premier Pages, unique siteswithin dell.com that are tailoredto the specific needs of individualcorporate and institutionalcustomers. These pages offerservices such as approvedproduct configurations, globalpricing, paperless purchaseorders, real-time order tracking,invoicing and purchasing

history, among other efficiency tools.Our on-line “virtual account execu-

tive” provides high-level services tosmall businesses. And we furnish allcustomers—from the largest corpo-rate client to the individual home-PCbuyer—with a “virtual help deskfeaturing natural-language search

recruiting increasing numbers of highlyskilled men and women with a diverserange of backgrounds remain strategicrequirements for us. We believe that,with focused execution of our directmodel, we can continue to setthe standards for leadership in our industry.

Our belief is based on a range of complementary engines” that dr ive the

company’s robust growth.During the past year,

revenue from our expandingrange of enterprise systems—Dell Precision workstations,PowerEdge servers and Power-Vault storage products—andnotebook computers increasedby 113 and 75 percent, respec-tively. In those and otherproduct a reas , Del l i s recognized by analysts andcustomers for its leadershipin quality and performance.As examples, Gartner Group,a leading industry-analyst organiza-tion, cited our “ability to execute” and completeness of vision” in its evaluation

of top server vendors; we exited lastyear as the No. 1 seller of work-stations using Microsoft Corp.’sWindows NT operating system; andPC Magazine called our Inspiron 7000

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the company’s tremendous accomplishments,While we’re rightly proud of

our future abounds with potential.

FY95 96 97 98 99

$0.32

$0.53

$0.17

$0.08$0.05

FY95 96 97 98 99

76

13

3132

DAYS SUPPLYIN INVENTORY

DILUTED EARNINGSPER SHARE

“

“

”

”

Recognition of Dell’s capabilities is increasing worldwide, as arethe company’s growth opportunities.We completed or announced plansfor more than one million square feet

of additional manufacturingcapacity in fiscal 1999,including new plants inAustin, Texas, and Limerick,Ireland. We opened a manu-facturing and customer centerin China to support our direct model in that nationalmarket, which is alreadyamong the top 10 in theworld and, we believe, will bethe second largest —behindonly the U.S. — within fiveyears. We also announcedplans for a manufacturing and customer center in Brazilthat will serve the Mercosurtrading region.

We remain convinced thatDell is expanding significantlythe fundamental advantages

of its direct business model, and weare giving a powerful new voice tothat belief. Last year, we introducedthe company’s first global brand-advertising campaign, which illus-trates for customers the benefits that result from their choosing toBe Direct.” The theme of the

capabilities, direct access to more than 50,000 pages of technical-support data, and an efficient spare-parts ordering system.

Recently, we expanded our Internetpresence with the launch ofwww.gigabuys.com, an on-linesource for tens of thousands ofcomputer-related products atcompetitive prices.

I n t h e field , w e a r e continuing to strengthen ourportfolio of services. With itsservice partners, Dell has aworldwide team of more than20,000 technicians who aretrained to provide a broadvariety of services. However, aswe develop additional partner-ships with best-in-class servicecompanies, the advantages ourcustomers enjoy with Dell as the single point of contact andaccountability will be enhanced.

Customers recognize ourproduct and service leadership.Among more than 350 related awardslast year, Dell again was rated first incustomer satisfaction in several impor-tant industry surveys, and was chosenoverwhelmingly as “best of breed” inPCs in capturing Fortune magazine’sfirst Reader’s Choice Award forPersonal Service and Reliability.

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manufacturer and marketer of computer systems in the world.

This past year, Dell was

the fastest-growing

186%195%

85%

39%37%

FY95 96 97 98 99

FY95 96 97 98 99

$32.0

$127.2

$11.4$2.6 $1.7

RETURN ON INVESTED CAPITAL

MARKETCAPITAL IZAT ION

(IN B ILL IONS)

“

campaign serves as the foundation forour stepped-up efforts to brand theunique way Dell does business.

We want customers who may buyonly desktop PCs from Dell today toselect us for notebook computers andservers, too. We want customers whotoday purchase from Dell in Europe, forexample, to also choose us for their oper-ations elsewhere in the world. And wewant customers who today have multiplesuppliers of computer systems to pickDell as they consolidate their purchasingof these products and related services.

Of course, to accomplish those objectives, we must consistently andincreasingly deliver on the promise of the Dell brand. Make no mistake—we recognize that the fuel for ourgrowth is a superior customer experience.

This past year, Dell was the fastest-growing manufacturer andmarketer of computer systems in theworld. In terms of market share, we ranked No. 3. However, the knowl-edge gained from direct relationshipswith customers and our keen focus on their satisfaction together serve as ample guard against contentment on our part. So, too, does our employeecompensation program, which is tiedto the company’s measured performanceand progress in exceeding the require-ments of customers.

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5

MORTON L. TOPFERVice Chairman

KEVIN B. ROLLINSVice Chairman

MICHAEL S. DELLChairman of the Board andChie f Execut ive Of f icer

We realize that, for all of our accomplishments, nine of every 10computer systems purchased last yearwere sold by someone other than Dell.That statistic vividly underscores themagnitude of what remains to be done, but also the grand opportunitywe have with the industry’s most efficient, most customer-focusedbusiness model, and our team ofskilled, dedicated employees.

We intend to continue to bring that opportunity to life by working to exceed the expectations of everycustomer, and, in turn, all others whohave interests in Dell. And we will do so the best way we know how.

Directly.

April 1999

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the single point of contactfor customers worldwide.

accountableBeing Direct means Dell is

R E A D E R S ’ C H O I C E : P E R S O N A L S E R V I C E A N D R E L I A B I L I T Y , F O R T U N E T E C H N O L O G Y8

Sony Corporation, the Tokyo-based manufac-turer of audio, video, communications andinformation technology products and globalentertainment company, four years agochanged the corporate computing standard at its operations in Japan to MicrosoftWindows-based PCs. With the platformchange came a need for a new computersystem supplier, one that could deliver largenumbers of high-performance desktopsystems quickly and efficiently.

As one of the solutions, Sony chose Dell,which has a dedicated team of sales and technology professionals to help Sony

select the best products for its informationtechnology needs. At its manufacturing facility in Penang, Malaysia, Dell assembles,custom-configures and tests OptiPlex desktopsystems, then ships them to Sony locationsacross Japan.

By choosing Dell desktops, Sony savessignificant amounts of time and money, in part because of the efficiency of purchasingdirectly. Sony buys its systems from Dell on-line, through a unique Premier Page at www.dell.com. Today, Sony is purchasinghigh-quality, custom-built Dell computersystems for 30 subsidiaries around the world.

B U Y E R ’ S G U I D E ■ M V P : D E S K T O P P C C A T E G O R Y , P C / C O M P U T I N G J A P A N 9

SONY CORPORATION

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delivering cost-effective,

Being Direct means Dell is

efficient

B E S T B U Y : P O W E R , B U D G E T A N D H O M E D E S K T O P S Y S T E M S , P C W O R L D ■ W O R L D - C L A S S R E L I A B I L I T Y,10

industry-leading products and services.

Q U A L I T Y, S U P P O R T : D I M E N S I O N D E S K T O P P C S A N D P O W E R E D G E S E R V E R S, P C W O R L D H O N G K O N G

New York Public LibraryLong distinguished as one of the world’s great libraries, the New York Public Library isexpanding the use of information technology to provide global access to its renowned collections. To reach that goal, the librarysought a strategic business partner that woulddeliver cost-effective computers on tight schedules, quickly solve problems and collaborate on new projects.

Over two years the library will purchasenearly 1,000 Dell OptiPlex desktop computersfor an upgraded network spanning fourresearch libraries and 85 branches.

Dell delivered one order in time to meet tightconstruction deadlines for renovation of thelandmark Rose Main Reading Room of theHumanities and Social Sciences Library. Dellalso saved the library $200 per system byfactory-installing the library’s cataloging software and other customized programs.

Dell is a strategic business partner on thelibrary’s information-technology team, and the twohave worked together on a variety of projects. Forexample, last year Dell consulted with the library,along with other customers, on possible newdesigns for future models of desktop computers.

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America Online Inc., the world leader inbranded interactive Internet services and original content, wanted to reduce the cost and improve the efficiency of purchasing and supporting notebook computers deployedto its global employee base.

Dell gave AOL access to notebookcomputer systems that were not yet publicly available for testing in AOL’s computing environment. AOL then selected configura-tions of Dell Latitude notebooks—systemsknown for long product life cycles—and in the process reduced support requirements and eliminated the need for frequent productupgrades. Dell now supplies the majority of

AOL’s notebook computers, into which Dellfactory-installs AOL’s standard and proprietarysoftware through the DellPlus program. AOLsaves time and money by making Dell itssingle point of contact for ordering, delivery,service and support of these products.

Dell also keeps AOL updated on comingproduct changes through Dell’s ImageWatchprogram, helping the Internet company plan for its future technology needs. In just the first year of the relationship, America Online’simplementation of a computing standard basedon Dell Latitude notebooks has saved thecompany significantly in support and procurement costs.

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responsiveproviding services ranked among the industry’s best.

R E A D E R S’ C H O I C E : S E R V I C E A N D R E L I A B I L I T Y, D E S K T O P S A N D N O T E B O O K S , P C M A G A Z I N E 12

Being Direct means Dell is

■ N O . 1 : P C C U S T O M E R S A T I S F A C T I O N , W E B - B A S E D S U P P O R T , C O M P U T E R W O R L D 13

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Microsoft Corporation, the worldwide leader in software for personal computers, needed a faster and more cost-effective way ofpurchasing the computers its employees use to design products. Dell, with its industry-leading on-line capabilities, gave Microsoft the ability to buy desktop and notebookcomputers, network servers and workstationsthrough www.dell.com and a Premier Page Web site customized for Microsoft. Dell alsoloads and tests software and installs thecustomer’s asset tags in the factory through

the DellPlus program, putting systems into use dramatically faster and helping Microsofttrack its computer purchases across itssprawling Redmond, Wash., campus.

Microsoft technology buyers who purchasedirectly from Dell typically receive their preconfigured systems in about four days. The efficiency of Dell’s on-line paperlesspurchase orders and electronic invoicing capabilities combined to save Microsoft an estimated $1 million in procurement costs in the first year alone.

dealing one-to-one with customers of all sizes.

■ H I G H E S T O V E R A L L C U S T O M E R S A T I S F A C T I O N : P C S E R V E R S , D A T A P R O 1 5

engagedBeing Direct means Dell is

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R E L I A B I L I T Y A N D S E R V I C E : W O R K P C S , H O M E P C S A N D N O T E B O O K S , P C W O R L D1 6

building high-performing computers one at a time.

At 1:22 a.m. on Feb. 5, Darren Denenberg and Megan Roback found themselves trapped in their Baltimore, Md., apartment by a firethat started two doors down. The eight-alarmblaze left the dwelling uninhabitable and most of their belongings severely damaged by smoke and water. Most—but not all.

The couple’s three Dell Dimension desktop computers were still running when Darrenand Megan returned to the apartment thefollowing day. Darren, a Ph.D. student at theUniversity of Maryland, uses the computersto create and store his dissertation on

human-computer interaction, and to maintainstudent records for the courses he teaches.The systems also encounter heavy-duty use by the couple to play games, design Web sitesand access the Internet.

According to Darren, the Dell systemssurvived “almost as if nothing had happened.”The couple and the computers have moved toa new home, where the research andcomputer projects were resumed almostwithout interruption. Darren for years hasrecommended Dell computers to friends andfamily members—who now know why.

reliable

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Being Direct means Dell isW

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As part of a companywide effort to become morecost effective, Mobil Corporation, a leadingglobal oil, natural gas and petrochemicalcompany, in 1998 established a goal of reducingthe cost of procuring and supporting its computersystems by 25 percent over three years.

Dell—which is Mobil’s single source world-wide for desktop and notebook computersand servers—helped the customer definestandard system configurations and extendeduniform global pricing for the specifiedsystems. Dell established on-line ordering for Mobil via www.dell.com. In its factory,Dell installs software for Mobil as systems

are being built, and provides tools that helpMobil track its system purchases worldwide.Orders placed electronically are routed to theappropriate Dell regional manufacturing facilitiesfor system configuration, testing and shipment.Notebook computers from Limerick, Ireland, for example, are built with the same processes and to the same standards as those assembledfor Mobil in Austin, Texas.

Dell’s global account management helps Mobil, which has subsidiary operations in 140countries, simplify the procurement process,accelerate the receipt of new computer systems and significantly reduce associated costs.

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a global leader in on-line sales, services and support.

evolutionary

H I G H E S T C U S T O M E R S A T I S F A C T I O N : S E R V E R S , D E S K T O P S A N D N O T E B O O K S, T E C H N O L O G Y18

Being Direct means Dell is

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F I S C A L Y E A R E N D E DJ A N . 2 9 , 19 9 9 F E B . 1 , 19 9 8 F E B . 2 , 19 9 7 J A N . 2 8 , 1 9 9 6 J A N . 2 9 , 19 9 5

O P E R AT I N G R E S U L T S

Net revenue $ 18,243 $ 12,327 $ 7,759 $ 5,296 $ 3,475Gross margin $ 4,106 $ 2,722 $ 1,666 $ 1,067 $ 738Income before extraordinary loss $ 1,460 $ 944 $ 531 $ 272 $ 149Income before extraordinary loss

per common shareBasic $ 0.58 $ 0.36 $ 0.19 $ 0.09 $ 0.06Diluted $ 0.53 $ 0.32 $ 0.17 $ 0.08 $ 0.05

Operating income 11.2% 10.7% 9.2% 7.1% 7.1%Net income 8.0% 7.7% 6.7% 5.1% 4.3%

P E R C E N T O F N E T R E V E N U E

Operating income $ 2,046 $ 1,316 $ 714 $ 377 $ 249Net income $ 1,460 $ 944 $ 518 $ 272 $ 149Income tax rate 30.0% 31.0% 29.0% 29.0% 30.0%Net revenue, by region

Americas 68% 69% 68% 66% 69%Europe 26% 24% 26% 28% 27%Asia-Pacific and Japan 6% 7% 6% 6% 4%

System net revenue, by product lineDesktops 64% 71% 78% 81% 87%Enterprise 13% 9% 4% 3% 5%Portables 23% 20% 18% 16% 8%

Non-system net revenue, 7% 9% 10% 11% 12%percent of total system net revenue

five-year statistical reviewDell Computer Corporation

20

Share and per-share information has been restated to reflect 2-for-1 splits of the common stock in September 1998 and March 1999.

( D O L L A R S I N M I L L I O N S , E X C E P T P E R - S H A R E , P E R - U N I T D ATA )

F I S C A L Y E A R E N D E DJ A N . 2 9 , 19 9 9 F E B . 1 , 1 9 9 8 F E B . 2 , 1 9 9 7 J A N . 2 8 , 19 9 6 J A N . 2 9 , 19 9 5

F I N A N C I A L P O S I T I O N

Total current assets $ 6,339 $ 3,912 $ 2,747 $ 1,957 $ 1,470Property, plant and equipment, net $ 523 $ 342 $ 235 $ 179 $ 117Working capital $ 2,644 $ 1,215 $ 1,089 $ 1,018 $ 718Total assets $ 6,877 $ 4,268 $ 2,993 $ 2,148 $ 1,594Total current liabilities $ 3,695 $ 2,697 $ 1,658 $ 939 $ 752Long-term debt $ 512 $ 17 $ 18 $ 113 $ 113Stockholders’ equity $ 2,321 $ 1,293 $ 806 $ 973 $ 652Total liabilities and stockholders’ equity $ 6,877 $ 4,268 $ 2,993 $ 2,148 $ 1,594

K E Y R AT I O S

Current ratio 1.72 1.45 1.66 2.08 1.96Quick ratio 1.43 1.23 1.36 1.46 1.42Days of supply in inventory 6 7 13 31 32Days of sales in accounts receivable 36 36 37 42 47Days in accounts payable 54 51 54 33 44Return on invested capital 195% 186% 85% 39% 37%

O T H E R D AT A

Employees (year-end, approximate) 24,400 16,200 10,350 8,400 6,400Average total revenue per unit (approximate) $ 2,350 $ 2,600 $ 2,700 $ 2,850 $ 2,900Shares issued and outstanding (year-end) 2,543 2,574 2,768 2,992 2,580Weighted average shares outstanding

Basic 2,531 2,631 2,838 2,863 2,473Diluted 2,772 2,952 3,126 3,158 3,000

Common shares outstanding (year-end) 2,543 2,574 2,768 2,990 2,540Closing stock price (NASDAQ: DELL) $ 50.00 $ 12.43 $ 4.13 $ 0.86 $ 0.65Market capitalization $ 127,150 $ 31,995 $ 11,430 $ 2,570 $ 1,650

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B O A R D O F D I R E C T O R SMICHAEL S. DELLChairman of the Board and Chief Executive Officer,Dell Computer Corporation

DONALD J. CARTYChairman of the Board, President and Chief Executive Officer,AMR Corporation and American Airlines Inc.Committee: Compensation

PAUL O. HIRSCHBIEL JR.President, Eden Capital,and Former Managing Director,Cornerstone Equity Investors L.L.C.Audit, Finance

MICHAEL H. JORDANFormer Chairman of the Board andChief Executive Officer,CBS CorporationAudit, Nominating

THOMAS W. LUCE IIIOf CounselHughes & Luce L.L.P.Compensation

KLAUS S. LUFTOwner and President,MATCH - Market Access for Technology Services GmbH, and Vice Chairman/International Advisor, Goldman Sachs Europe Ltd.Compensation

CLAUDINE B. MALONEPresident,Financial & Management Consulting Inc.Finance

ALEX J. MANDLChairman of the Board and Chief Executive Officer, Teligent Inc.Audit, Nominating

MICHAEL A. MILESFormer Chairman of the Board and Chief Executive Officer,Philip Morris Companies Inc.Finance

MARY ALICE TAYLORCorporate Executive Vice President,Global Operations andTechnology, Citigroup Inc.Finance

E X E C U T I V E O F F I C E R SMICHAEL S. DELLChairman of the Board and Chief Executive Officer

MORTON L. TOPFERVice Chairman

KEVIN B. ROLLINSVice Chairman

PAUL D. BELLSenior Vice President, Americas Home and Small Business Group

G. CARL EVERETT JR.Senior Vice President, Personal Systems Group

JAN GESMAR-LARSENSenior Vice President and President, Europe, Middle East and Africa

THOMAS B. GREENSenior Vice President, Law and Administration,and Secretary

JEROME N. GREGOIRESenior Vice President and Chief Information Officer

MICHAEL D. LAMBERTSenior Vice President, Enterprise Systems Group

JOHN J. LEGEREVice President and President, Asia-Pacific

JOSEPH A. MARENGISenior Vice President, Americas Relationship Group

D. KEITH MAXWELLSenior Vice President,Worldwide Operations Group

THOMAS J. MEREDITHSenior Vice President and Chief Financial Officer

ROSENDO G. PARRASenior Vice President,Americas Public and International Group

CHARLES H. SAUNDERSVice President and President, Japan

JAMES M. SCHNEIDERSenior Vice President, Finance

senior management

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Dell Computer Corporation

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C O M P A N Y I N F O R M AT I O NInformation about Dell’s products,operations, financial results andhistory can be obtained online via www.dell.com.

R E G I O N A L H E A D Q U A R T E R SAMERICASDell Computer CorporationOne Dell WayRound Rock, TX 78682512-338-4400, 800-289-3355Fax: 512-728-3653

EUROPE, MIDDLE EAST AND AFRICADell Computer EuropeDell PlazaWestern RoadBracknell, BerkshireUnited Kingdom RG12 1DX44-1344-748000Fax: 44-1344-748008

ASIA-PACIFICDell Computer Asia Ltd.1001 Stanhope House734-738 King’s RoadQuarry Bay, Hong Kong852-2508-0500Fax: 852-2887-2040

JAPANDell Computer K.K.Solid Square East Tower 20F580 Horikawa-cho, Saiwai-kuKawasaki, Kanagawa 210-0913Japan81-44-556-4300Fax: 81-44-556-3205

I N V E S T O R D AT ADell Computer Corporation’s commonstock is traded on The Nasdaq NationalMarket under the symbol “DELL.”

The company’s stock was initially offered to the public on June 22, 1988,at $8.50 per share. Following is a rosterof subsequent stock splits:

April 1992 3-for-2October 1995 2-for-1December 1996 2-for-1July 1997 2-for-1March 1998 2-for-1September 1998 2-for-1March 1999 2-for-1

(Example: One-hundred sharesof Dell stock at the IPO was equal to 9,600 shares in April 1999.)

One-hundred dollars invested in Dell at the IPO price was worth about $56,470 at the close of the last fiscal year, Jan. 29, 1999.

Investor information, includingDell’s fiscal 1999 year-in-reviewand annual reports, can be foundat www.dell.com/investor/. For printed copies of the annual report on Form 10-K(without exhibits), or otherinvestor data, contact:

Investor RelationsDell Computer CorporationOne Dell WayRound Rock, TX 78682-2222512-728-7800

The company’s 1999 annual shareholders meeting will beheld at 9:00 a.m. on Friday, July 16, at the Austin ConventionCenter, 500 E. Cesar Chavez St.,Austin, Texas.

I N D E P E N D E N T A C C O U N T A N T SPricewaterhouseCoopers LLPAustin, Texas

corporate informationDell Computer Corporation

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DE L L A ND T HE CO M M U N I T YDell and its employees continued to enrich the lives of people around the world through corporateprograms, the Dell Foundation and direct giving. As examples, Dell last year supported communitytraditions such as the Martin Luther King Day celebration in Austin, Texas; helped bring the arts toemployees and neighbors through partnerships withthe Austin Museum of Art and Japan’s Ginza Gallery;and promoted understanding through technology in Ireland by donating to the Schools ExchangeProgramme, which links children from the IrishRepublic with children in Northern Ireland. Since its inception in 1995, the Dell Foundation hascontributed significantly to arts, education, and health and human-services projects for children.Company employees donated millions of dollars and thousands of hours to numerous service andcommunity organizations and related events, amongthem the Juvenile Diabetes Foundation, March of Dimes WalkAmerica, Junior Achievement andHabitat for Humanity. More information about Dell’scommunity activities can be found on the World WideWeb at www.dell.com/corporate/vision/.

D E L L A N D T H E E N V I R O N M E N TDell’s positive environmental practices continued in fiscal 1999 through innovative product-design and clean-manufacturing initiatives. Dell achieved a 70-percent recycling and reuse rate at its manufac-turing facilities worldwide, and was recognized forhaving the “Best Workplace Recycling Program” by the Recycling Coalition of Texas. Company productscontinued to meet the stringent environmental efficiencyand design standards required for the German “BlueAngel” and Swedish “TCO ’95” certification labels. The U.S. Environmental Protection Agency “WasteWise” program recognized Dell for its environmentally responsible programs, and Keep Austin Beautiful gave Dell its “President’s Award.” For a more extensivedescription of Dell’s environmental programs,visitwww.dell.com/corporate/vision/ via the Internet.

Statements in this report that relate to future results and events are based on the company’s current expect-ations. Actual results in future periods may differ materially from those currently expected or desiredbecause of a number of risks and uncertainties,including the level of demand for personal computers;the intensity of competition; currency fluctuations; the cost of certain key components; and the company’sability to effectively manage product transitions andmaterial availability, to minimize excess and obsoleteinventory and to continue to expand and improve its infrastructure (including personnel and systems).Additional discussion of these and other factorsaffecting the company’s business and prospects iscontained in the company’s periodic filings with theU.S. Securities and Exchange Commission.

Dell, Dimension, Latitude, OptiPlex and PowerEdgeare registered trademarks; Inspiron, Dell Precision and PowerVault are trademarks; Gigabuys is a regis-tered service mark; and Be Direct, Premier Pages, and ImageWatch are service marks of Dell ComputerCorporation. Other trademarks and trade names usedin this document refer either to the entities claiming themarks and names, or to their products. Dell disclaimsproprietary interest in the marks and names of others.

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corporate informationDell Computer Corporation

visit Dell’s Fiscal 1999 in Review on-line:To learn more about Being Direct,

www.dell.com/investor/

Dell Computer Corporation is an Equal-Opportunity/Affirmative-Action Employer