|

DELL REINFORCES ITS COMMITMENT WITH BRAZIL AND ANNOUNCES NEW PLANT

Company maintain headquarters in Rio Grande do Sul and expands plant to São Paulo

Eldorado do Sul, May, 9th 2006 — As part of the plan to asses the best experience and opportunities for the majority of its customers, Dell Computadores do Brasil announces that it is increasing its investment in manufacturing by relocating to a new plant in Brazil, to be located in Hortolândia, São Paulo State. Dell will invite all production employees to relocate to the new site.

The initiative will supplement the existing operations, in Eldorado do Sul, Rio Grande do Sul, and will strengthen the company’s customer, supplier and partner relationships. The headquarters for the Brazilian operation is to remain in the State of Rio Grande do Sul, including the Sales, Marketing and Services organizations as well as the GDC-Global Development Center, where the company was founded in 1999. It means that Dell will continue to account for more than 700 direct jobs in the State of Rio Grande do Sul.

The new plant will also facilitate parts and products imports and exports, as it is closer to São Paulo City, the largest economic center in Latin America. This advantage will reduce production costs and expedite delivery time. The new plant is expected to start operations by the end of this year.

“The reason for the changing is to be closer to Brazil’s main market and major corporate clients, yet improving the benefits of the Dell’s direct business model, getting closer to our supply chain and major partners. Dell is continuously seeking the best competitive edge in order to reduce the company cost structure and offer the best value and benefits to customers”, explains Raymundo Peixoto, Dell Brazil Country Manager.

“Since most clients are located in the State of Sao Paulo and neighboring states account for a substantial share of Dell’s market and since the State of São Paulo is the location to major source of parts, besides an exceptional distribution infrastructure by air and ground, opening a new manufacturing plant in São Paulo State was the natural move to take in order to offer our customers the best cost structure. With this decision, we can continue to grow in quality and productivity standards at multiples of the market”, declares Terry Kahler, Vice-President and General Manager for Latin America Region at Dell Inc.

Brief Company History in Brazil

November 1999 – Opening of first manufacturing facility at Americas outside of USA in Eldorado do Sul with desktop OptiPlex and Dimension product line.

February 2001 – Beginning of production of PowerEdge servers.

March 2001 – Implementation of first development center outside the USA, the Global Development Center, to develop several projects and to fulfill the demand of software for internal applications, including managing process that optimize Dell’s operations in Brazil and abroad.

February 2002 – Beginning of production of Latitude notebooks.

July 2002 – The Global Development Center starts to operate at Pontifícia Universidade Católica do Rio Grande do Sul campus at Porto Alegre what allowed the increase of its capacity and the expansion of number of employees.

August 2002 – Dell Brazil starts to export to Mercosur (Argentina, Chile and Colombia).

August 2003 – Company begins to support demand of South Africa.

October 2004 – Dell expands its service portfolio with the launch of Dell’s Professional Services (DPS) in Brazil.

2005 – Dell Brazil is included in the list of the Great Place to Work in country and finish year as #1 in servers and notebooks as well as #1 in the large, medium, small business and small offices according to IDC.

2006 – Dell Brazil announces plant expansion to São Paulo.

snWW23