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Tuesday, May 30, 2006
Dell Formally Opens New Factory in Xiamen

Dell China today formally opened its new manufacturing operation in Xiamen, marking another significant milestone in the company's rapid growth and success in China.

Ding Guoyan, a member of standing committee and executive vice mayor of Xiamen, and Steve Felice, president, Dell Asia Pacific and Japan, attended today's ceremony, which was witnessed by other city and company officials, along with Dell customers, employees and supply partners.

The 594,000-square-foot facility is Dell's second manufacturing operation in Xiamen and more than doubles the company's production capacity in China. The factory uses Dell's proprietary, build-to-order processes to produce its leading PowerEdge servers, PowerVault storage systems, Dell Precision workstations, Latitude and Inspiron notebook computers, and OptiPlex and Dimension desktop computers for customers in Japan, South Korea and Hong Kong. Dell's first factory in Xiamen supplies customers in mainland China, the company's fifth-largest and one of its fastest-growing businesses.

"Attracting advanced technology industries to Xiamen is a key strategy for our city's economic development, and one we're committed to," said Xiamen's Mr. Ding. "Dell's new factory represents just the latest chapter in cooperation between Xiamen and Dell, which plays a significant role in our city's economic growth and internationalization."

"The achievements of Dell people in China over the past eight years have been historic," said Mr. Felice. "They've been accomplished in partnership with our customers, the Xiamen government and our suppliers," said Mr. Felice. "Our second factory in Xiamen and China is another illustration of Dell's long-term commitment to and the tremendous opportunity in this important country."

Since the launch of its direct-to-the-customer business in China in 1998, Dell has significantly enhanced its presence in the country. In addition to two manufacturing operations in China, Dell has an Enterprise Command Center in Xiamen that provides customers with mission-critical enterprise services, and a global design center in Shanghai. In March, Dell announced an 200 additional jobs at the Shanghai center.

Dell also shares its efficient manufacturing and supply-chain management expertise with local suppliers and customers to help them become more competitive in the global marketplace. Last year, Dell purchased nearly US$16 billion of technology components and other products from suppliers in China to support its worldwide manufacturing.

Dell's unique, customer-focused direct model has earned it significant, rapidly growing business from customers of all types, ranging from large corporations, government agencies and education institutions, to small and medium businesses, to home-computing users. In Dell China's most-recent quarter, product shipments increased 40 percent, double the industry average, and revenue grew 29 percent.

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