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Revenue growth outside of the United States and in strategic products and services highlighted the first quarter. Sales outside the U.S. increased 21 percent year-over-year and grew to 42 percent of the company's total revenue. Worldwide revenue from storage systems increased 49 percent and sales of mobility products grew 22 percent from a year ago.

For the quarter ended April 29, the company achieved total revenue of $13.4 billion, a 16-percent increase year-over-year, and net earnings of 37 cents per share, up 32 percent and a company record.

”Our greatest strength in the quarter was precisely in the products, services and regions in which we're most focused on growing,” said Kevin Rollins, Dell's chief executive officer. ”Customers worldwide are increasingly relying on us for their diversified information-technology requirements.”

Mr. Rollins said the company expects second-quarter fiscal 2006 to produce a revenue increase of 16 to 18 percent, to $13.6 to $13.8 billion, and earnings per share of 37 to 39 cents.

In the first quarter, Dell's operating margin as a percent of revenue was 8.8 percent, up from 8.4 percent a year ago. The company generated $1.2 billion in cash flow from operations. Dell repurchased more than 50 million shares of its common stock during the quarter for $2 billion, a company record, and has reduced Dell's shares outstanding by more than 80 million over the past year.

Significant Growth Outside the U.S.

Revenue in Europe, the Middle East and Africa (EMEA) and in Asia-Pacific and Japan (APJ) grew 20 percent and 19 percent, respectively.

Overall company shipments in EMEA increased 26 percent as Dell closed the gap on the regional leader by almost two share points. Sales of Dell storage systems increased more than 60 percent year-over-year. Revenue from software and peripherals rose 37 percent, led by strong growth in imaging and printing products. Revenue from mobility products increased 20 percent, as shipments of notebook computers rose 39 percent. Regional server shipments were up 23 percent, more than twice the average of other companies.

In APJ, overall shipments of Dell products increased 27 percent from a year ago, double the rest of the industry. Server volumes grew 38 percent, resulting in revenue growth of 17 percent. Shipments of notebook computers increased 41 percent, driving a 22-percent rise in revenue from mobility products. Storage revenue grew 36 percent. Sales of software and peripheral products were up 52 percent.

Regional shipments in the Americas increased 17 percent year-over-year. Storage revenue grew 47 percent. Regional sales from mobility products increased 22 percent. Combined sales in Canada and Latin America were 32 percent higher than a year ago. For the fifth straight quarter, Dell ranked No. 1 in U.S. share of every industry product category and customer segment.

Enhanced Services, S&P Growth

Revenue from enhanced services, including professional and managed services supporting Dell's enterprise customers, rose 30 percent worldwide, even faster in EMEA and APJ. Services and storage revenue directly benefit from Dell's growing server business, shipments for which increased 25 percent worldwide.

Worldwide revenue from software and peripherals - including imaging and printing, televisions and displays - increased 29 percent. Sales of printer ink, toner and supplies nearly doubled as customers continued to embrace the ease of buying those products online. Dell's broadening printer line spans both ink-jet and laser models and the company is introducing those products to more regions and customers.

Dell Inc. (NASDAQ: DELL) is a trusted and diversified information-technology supplier and partner, and sells a comprehensive portfolio of products and services directly to customers worldwide. Dell, recognized by Fortune magazine as America's most admired company and No. 3 globally, designs, builds and delivers innovative, tailored systems that provide customers with exceptional value. Company revenue for the past year was $51.1 billion. For more information about Dell and its products and services, visit www.dell.com.

Special note: Statements in this press release that relate to future results and events (including statements about fiscal 2006 second-quarter financial and operating performance) are forward-looking statements based on Dell's current expectations. Actual results in future periods could differ materially from those projected in this forward-looking statement because of a number of risks and uncertainties, including general economic, business and industry conditions; the level and intensity of competition in the technology industry and the pricing pressures that have resulted; local economic and labor conditions, political instability, unexpected regulatory changes, trade protection measures, tax laws and fluctuations in foreign currency exchange rates; the ability to accurately predict product, customer and geographic sales mix; the ability to timely and effectively manage periodic product transitions; reliance on third-party suppliers for product components, including dependence on several single-source supplier relationships; the ability to effectively manage operating costs; the level of demand for the products and services Dell offers; the ability to manage inventory levels to minimize excess inventory, declining inventory values and obsolescence; and the effect of armed hostilities, terrorism, natural disasters and public health issues on the economy generally, on the level of demand for Dell's products and services and on Dell's ability to manage its supply and delivery logistics in such an environment. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission.

Consolidated statements of income, financial position and cash flows follow.

For further information:

Dell GmbH
Michael Rufer
Public Relations Manager
Dell Germany/Austria
Tel. +49-6103-766-3271
Fax +49-6103-766-9655
Michael_Rufer@dell.com
www.dell.de

PR-COM GmbH
Eva Kia-Wernard
Senior Account Manager
Tel. +49-89-59997-802
Fax +49-89-59997-999
eva.kia@pr-com.de
www.pr-com.de

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