August 7, 2003

Dell Packages PowerEdge Servers with Red Hat Enterprise Linux ES

SAN FRANCISCO -- Aug. 6, 2003--Dell will begin shipping Red Hat Enterprise
Linux ES with select Dell PowerEdge servers, along with a hardware and
software bundle suitable for small- and medium-sized businesses, the company
announced today.

Red Hat Enterprise Linux ES, tested and certified by Dell, is ideal for
edge-of-network applications such as file and print servers. The software
price of $349 (retail) includes a one-year subscription to Red Hat
Enterprise Network that enables customers to proactively receive software
and security updates, as well as product enhancements. Red Hat Enterprise
Linux ES is expected to be available for order from Dell on Aug. 27, 2003.

Customers purchasing the software from Dell along with a select PowerEdge
server will receive a $100 coupon from Red Hat for use with any online Red
Hat Global Learning Services eLearning course with a suggested retail price
equal to or greater than $325 a course.

"This hardware and software bundle answers a growing demand for Linux in the
small-and medium-business space," said Linda Hargrove-York, Dell vice
president of worldwide enterprise marketing. "It enables customers to get
the most relevant, standards-based technology for their business and install
it with minimal downtime."

Dell will ship Red Hat Enterprise Linux ES with three Dell servers:

* The PowerEdge 4600: a scalable server with advanced management features
ideal for server consolidation, database implementations and other highly
demanding operations;

* The PowerEdge 2650, a 2U scalable server with high-performance processing
power; and

* The PowerEdge 1650, a 1U server designed to deliver exceptional levels of
reliability, manageability and performance in a rack-dense, space-saving

Dell SMB and Linux Market Share Information

Market research firm IDC predicts the SMB market -- companies with fewer
than 1,000 employees -- will account for 53 percent of the growth in IT
spending this year(a). IDC also reports that Dell is the leading provider of
PCs (desktops, portables, plus standard Intel architecture servers), to the
U.S. SMB market with 27.4 percent unit market share(b). In the first quarter
of 2003, IDC ranked Dell No. 1 in units and revenue for the total U.S. Linux
server market(c).

For more information about Dell and Linux visit

About Dell

Dell Inc. is a premier provider of products and services required for
customers worldwide to build their information-technology and Internet
infrastructures. Company revenue for the past four quarters totaled $36.9
billion. Dell, through its direct business model, designs, manufactures and
customizes products and services to customer requirements, and offers an
extensive selection of software and peripherals. Information on Dell and its
products can be obtained at

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

Pricing, specifications, availability, and terms of offers may change
without notice and are not transferable. Taxes and shipping charges extra,
vary and are not subject to discount. Coupon is limited to the first 20,000
software purchases from Dell in conjunction with a PowerEdge server; offer
expires Dec. 31, 2003.

(a) Source: IDC presentation, Tapping the SMB Market Opportunity; Raymond
Boggs, March 26, 2003.

(b) Source: IDC Worldwide Quarterly PC Tracker, Q1 2003 Report, June 2,

(c) Source: IDC Worldwide Quarterly Server Tracker, Q1'03, May 29, 2003.

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