Dell Seeing Demand Stabilization, Expects Slight Sequential Revenue Growth with Modest Margin Pressure in Q2

* Company to Describe Strategic Priorities, Emphasize Enterprise Technology, at
Analyst Meeting
* Targeting 5-7 Percent Sales Growth, 7-Plus Percent Operating Income Over Time,
Based on Improving Global IT Spending

ROUND ROCK, Texas--(Business Wire)--
Dell said today year-over-year demand for its information-technology products
appears to have stabilized, and that it expects to report a slight sequential
revenue increase in its fiscal second-quarter 2010, which ends July 31. The
company also anticipates a modest decline in Q2 gross margins, the result of
higher component costs, a competitive pricing environment, and an unfavorable
mix of product and business-segment demand.

Speaking in advance of a Tuesday meeting in Austin with securities and industry
analysts, Brian Gladden, the company`s chief financial officer, said that while
demand for Dell`s products and services seems to have stabilized, it varies
significantly by customer segment and geography.

He added that Dell remains focused on optimizing liquidity, profitability and
growth in the midst of a still-challenging operating environment, and is on
course to reduce annual costs by more than $4 billion by the end of fiscal 2011.
Reductions are coming from a combination of greater efficiencies in design and
procurement, optimization of manufacturing and supply chain logistics, and
ongoing reductions in operating expenses.

The company stated that, over a longer time horizon, it will be targeting 5 to 7
percent compounded annual sales growth, operating income at or above 7 percent
of revenue, and cash flow from operations exceeding net income. However, such
results are dependent on broad global economic improvement accompanied by higher
worldwide IT spending, including a sustained double-digit growth rate in demand
for computer systems.

"We continue to believe that customers are deferring IT purchases, and that we
will see demand return to more typical levels at some point," Mr. Gladden said.
"In the meantime, we continue focusing our energy and resources on the operating
initiatives that will improve the company, and position us for future success.

"One of our strengths is understanding customer needs and meeting them with
great technology and services. To do that best we`re investing to expand on
existing capabilities and extend into new areas, while smartly and efficiently
managing our costs and assets."

Tuesday`s meeting begins at 8 a.m. CDT and will be Webcast live and archived at
www.Dell.com/investor.

About Dell

Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology
and services they trust and value. Uniquely enabled by its direct business
model, Dell is a leading global systems and services company and No. 33 on the
Fortune 500. For more information, visit www.dell.com, or to communicate
directly with Dell via a variety of online channels, go to
www.dell.com/conversations. To get Dell news direct, visit www.dell.com/RSS.

Special Note:

Statements in this press release that relate to future results and events
(including statements about our future financial and operating performance,
anticipated customer demand, future industry product shipments, anticipated
product component costs, the global economic recovery and future cost
reductions) are forward-looking statements based on Dell's current
expectations.Actual results and events in future periods may differ materially
from those expressed or implied by these forward-looking statements because of a
number of risks, uncertainties and other factors, including:weakening global
economic conditions and instability in financial markets; our ability to
reestablish a cost advantage over our competitors; our ability to generate
substantial non-U.S. net revenue; our ability to accurately predict product,
customer and geographic sales mix and seasonal sales trends; information
technology and manufacturing infrastructure failures and breaches in data
security; our ability to effectively manage periodic product transitions;
disruptions in component or product availability; our reliance on vendors for
quality product components, including reliance on several single-source or
limited-source suppliers; our ability to access the capital markets; risks
relating to our internal controls; unfavorable results of legal proceedings; our
acquisition of other companies; our ability to properly manage the distribution
of our products and services; the success ofour cost-cutting measures; effective
hedging of our exposure to fluctuations in foreign currency exchange rates and
interest rates; counterparty default risks; obtaining licenses to intellectual
property developed by others on commercially reasonable and competitive terms;
our ability to attract, retain and motivate key personnel; loss of government
contracts; expiration of tax holidays or favorable tax rate structures; changing
environmental laws; and the effect of armed hostilities, terrorism, natural
disasters and public health issues.For a discussion of those and other factors
affecting our business and prospects, see Dell`s periodic filings with the
Securities and Exchange Commission.We assume no obligation to update
forward-looking statements.

Dell is a trademark of Dell Inc. Dell disclaims any proprietary interest in the
marks and names of others.

Dell
Media Contacts:
512-728-4100
or
David Frink, 512-728-2678
david_frink@dell.com
or
Jess Blackburn, 512-728-8295
jess_blackburn@dell.com
or
Investor Relations Contacts:
Robert Williams, 512-728-7570
robert_williams@dell.com

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