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Dell Lowers 2Q Forecast

July 21, 2006

Dell said it expects second quarter fiscal 2007 revenue to be approximately $14 billion with EPS of approximately 21 to 23 cents. These estimates primarily reflect aggressive pricing in a slowing commercial market worldwide.

Dell continues to make significant investments in customer service and support capabilities. The company is seeing positive results and will continue to invest to drive a superior customer experience. Dell has also made significant investments in its products and expects to deliver a greatly expanded product line in the second half of the year. According to the most recent IDC numbers, Dell gained 1 share point sequentially, achieving a record 19.2 percent share, as the industry moves into a new phase of consolidation. Dell''s leading global share reflects customer’s confidence in Dell and its direct model throughout the world.

"All of our initiatives are focused on providing the best value, experience and products to customers every day, which will maximize shareholder value over the long term," said Dell CEO Kevin Rollins.

Dell will announce financial results for fiscal 2007 second quarter on August 17.

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