Digital Subsidiary Files For Initial Public Offering Of Common Stock

MAYNARD, Mass., August 27, 1996 -- Digital Equipment Corporation (NYSE:DEC) announced today that its newly-organized subsidiary, AltaVista Internet Software, Inc., has filed with the Securities and Exchange Commission a registration statement for an initial public offering by it of shares of its common stock. Following the offering, Digital will own at least 80 percent of AltaVista's common stock. Lehman Brothers Inc., Cowen & Company, and J.P. Morgan & Co. will manage the offering.

AltaVista Internet Software, Inc., offers a portfolio of software products and services designed for the emerging Internet/intranet market and also offers the AltaVista Internet Search Service on the World Wide Web.

Copies of the prospectus for the offering, when available, may be obtained from Lehman Brothers Inc., Prospectus Department, 536 Broadhollow Road, Melville, New York, 11747; telephone (516) 254-7106.

Digital Equipment Corporation is a world leader in open client/server solutions from personal computing to integrated worldwide systems. Digital's scalable Alpha and Intel platforms, storage, networking, software and services, together with industry- focused solutions from business partners, help organizations compete and win in today's global marketplace.

A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.

Note to Editors: Digital, the Digital logo and AltaVista are trademarks of Digital Equipment Corporation.