DIGITAL AND INTEL COMPLETE SALE OF DIGITAL SEMICONDUCTOR
                         MANUFACTURING OPERATIONS

Santa Clara, Calif., and Maynard, Mass. -- May 18, 1998 -- Digital Equipment
Corporation today announced that the sale of its semiconductor manufacturing
operations to Intel Corporation has been completed.

The transaction, which closed over the past weekend, includes the transfer of
the assets of Digital's semiconductor manufacturing operations in Hudson,
Mass., along with design and marketing facilities in Austin, Texas, and
Jerusalem, Israel, to Intel for about $625 million after taking into account
closing adjustments. Approximately 1,800 Digital employees became Intel
employees at the closing.

Intel will also serve as a foundry for multiple generations of Digital's
64-bit Alpha microprocessors while Digital retains the Alpha technology and
Alpha-related semiconductor design teams to develop future generations of the
microprocessor.

In addition, the companies will file documents dismissing previously-filed
lawsuits in Massachusetts, California and Oregon. As part of the settlement,
Digital and Intel also have entered into a cross-license of patents. In
addition, Digital is working with Intel to port its Digital UNIX* operating
system to run systems using Intel's future 64-bit microprocessors. Digital
also will work with Intel and Microsoft* to establish a common programming
environment for 64-bit Windows* NT* applications for Alpha and IA-64
platforms.


Digital Equipment Corporation, recognized for product and service excellence,
is a leading supplier of high-performance, Web-based computing solutions which
help enterprises compete in the global marketplace. Digital gives its
customers a winning Internet advantage through a comprehensive portfolio of
Internet solutions based on award-winning systems, advanced networking
infrastructure, innovative software and industry applications -- including
those from its business partners. The expertise and experience of Digital
employees help customers plan, design, implement, manage and support Internet
solutions in countries throughout the world. For the latest company
information, visit Digital on the World Wide Web at www.digital.com and/or
www.newsdesk.com

Intel, the world's largest chip maker, is also a leading manufacturer of
computer, networking and communications products. Additional information about
Intel is available at www.intel.com/pressroom

* Other names and brands may be claimed as the property of others.