Press Release

EMC Reports All-Time Record Revenue and Net Income for Second Quarter

Revenue Up 36%, Net Income Up 52% On Increasing Demand From Internet Companies, Strength of Fibre Channel-Attached Storage and Software Growth

Hopkinton, Mass., Wednesday, July 21, 1999 - 

EMC Corporation (NYSE:EMC), the world's leading provider of enterprise storage systems, software and services, today reported all-time record revenue and net income for the second quarter of 1999.

Revenue for the second quarter was a record $1.29 billion, 36% higher than the second quarter of 1998. Net income for the quarter was a record $289 million, up 52% compared with the second quarter of 1998. On a diluted basis, earnings per share were a record $0.27 in the quarter, compared with $0.18 in the second quarter of 1998 (adjusted for a 2-for-1 stock split effective May 28, 1999). Software revenue increased 83%, and systems revenue increased 29%, compared with the second quarter of 1998.

Statements of Income and Balance Sheets (Consolidated)

Michael C. Ruettgers, EMC President and CEO, said, "By almost any measure, the second quarter was the most successful in EMC's 20-year history. This marks not only our highest-ever quarterly revenue, net income and EPS, but also the ninth consecutive quarter in which we have achieved at least 30% year-to-year growth in both revenue and net income."

?The Internet-driven economy is helping to generate record demand for EMC Enterprise Storage, as businesses large and small recognize that they cannot afford to compromise when it comes to ensuring their customers the constant availability of information,? Ruettgers continued. Major EMC customer wins in the second quarter included several Internet-focused businesses that chose to invest in the world?s most reliable and robust information infrastructure with EMC Enterprise Storage. Among them were www.iShip.com, a leading provider of Web-based shipping services; barnesandnoble.com, a leading Internet commerce site for booklovers; DrugEmporium.com, America?s first online drug store; eToys.com, the premier Internet retailer of children's products; and Mail.com, Inc., a leading global provider of e-mail and advanced messaging services.

Revenue from Fibre Channel-attached storage systems reached nearly $380 million in the second quarter, more than double last year's second quarter. With more than $1.5 billion in Symmetrix Enterprise Storage systems with Fibre Channel connectivity now installed worldwide, EMC is strengthening its lead in this important market segment. EMC customers utilizing Fibre Channel technology are well-positioned for the anticipated wave of implementation of the EMC Enterprise Storage Network (ESN). Demand for the EMC ESN was very strong in the second quarter.

Other highlights of the second quarter included the announcement of an alliance with KPMG LLP, a leading professional services firm, to work collaboratively with customers and extend KPMG's Enterprise Infrastructure practice to include storage architecture; the accelerated momentum of the EMC-sponsored FibreAlliance, working with industry leaders to develop open standards for managing networks of storage systems and computers; and EMC's #6 ranking on Business Week's annual "INFO TECH 100" list of the world's best-performing IT companies.

EMC Corporation, based in Hopkinton, Massachusetts, is the world's technology and market leader in the rapidly growing market for intelligent enterprise storage systems, software, networks, and services. The company's products store, retrieve, manage, protect and share information from all major computing environments, including UNIX, Windows NT and mainframe platforms. The company has offices worldwide, trades on the New York Stock Exchange under the symbol EMC, and is a component of the S&P 500 Index. For further information about EMC and its storage solutions, EMC's corporate web site can be accessed at http://www.EMC.com.
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