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Dell, a world leader in Internet commerce and infrastructure, Monday announced new Web-hosting initiatives and alliances designed to reduce the time and cost for small- and medium-sized businesses to create their Internet presence.

Since the introduction of DellHost in February, more than 2,000 small- and medium-sized businesses have chosen DellHost ( www.dellhost.com ) to reach their customers via the Web. Forty percent of DellHost customers are new to Dell, and 50 percent have chosen to host their sites with the Linux operating system.

Web hosting allows businesses to set up and manage Web sites and daily operations on servers housed in a separate, secure, high-end data center. Through Web hosting, companies outsource the servers that run their e-businesses but maintain access to their site's information and content. New DellHost capabilities introduced Monday include:

-- Guaranteed next-business-day setup for PowerEdge dedicated servers. To help small- and medium-sized businesses can establish their Web sites quickly, Dell is offering a next-business-day guarantee to obtain pre-configured dedicated PowerEdge servers. Additional details and terms of this guarantee are available at www.dellhost.com.

-- Lower price for dedicated hosting. By using Dell's new PowerApp appliance server, DellHost can now offer customers a dedicated Web server to host their site at lower prices, starting at $249 per month(1). Dedicated Dell PowerEdge servers, which offer greater expandability and flexibility, are available starting at $299 per month. Prices for Web hosting on a shared server start at $17.95 per month, plus setup fee.

-- Lower price for Web site design services. To help small- and medium-businesses establish and update their Web sites more affordably, Dell will provide an entry-level Web site design service for $99.

-- Lower price for domain name registration. DellHost customers now have the option to transfer domain name registration in an expedited fashion - in most cases, no more than 48 hours - at no cost. DellHost has also lowered the cost for domain name registration to $25 per year. And, for a limited time, DellHost will offer a free one-year domain name registration for customers who sign up and maintain their DellHost service for one year(2).

"The positive response to DellHost indicates that Dell's capabilities and expertise in providing Internet infrastructure are meeting real customer needs in the market for Web hosting services," said Tim Mattox, vice president, DellHost. "We will continue to take steps to help customers experience the quality of Dell servers to Web-enable their businesses." Dell's Web site for hosting, www.dellhost.com, offers customers a variety of services related to Web hosting, including Web site design services and tools, access to reliable and scalable Dell PowerEdge servers and PowerVault storage, and a choice of hosting packages for either dedicated or shared servers. Additional options for e-commerce are also available. Dell's small business site, www.DellEworks.com, provides customers a one-stop source to establish an Internet presence and grow their businesses with online services such as direct mail, direct e-mail, public relations, recruiting, credit reports, training and market research.

Dell is the world's No. 2 PC server provider(3) and is No. 1 in the U.S. small business market(4). IDC estimates that the Web hosting market for small- and medium-sized businesses will be $16 billion by 2003.

Dell Computer Corporation (Nasdaq:DELL) is the world's leading direct computer systems company, based on revenues of $27 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 210 on the Fortune Global 500 and No. 3 on the Fortune "most admired" lists of companies. Dell 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 on the World Wide Web at www.dell.com.

(1) Red HatLinux 6.2 only.

(2) Additional details and terms available at www.dellhost.com.

(3) Source: International Data Corporation, Commercial Systems and Servers bulletin, for companies with l-499 employees. Rankings based on U.S. and Worldwide "PC Server Shipments by Vendor" for 4Q99.

(4) Source: International Data Corporation, U.S. Quarterly PC Tracking, 3Q99.