ACADEMIA

HOPKINTON, MA -- EMC Corporation (NYSE:EMC) today announced estimated revenue and earnings per share for the second quarter of 2001, which ended June 30, 2001, based on preliminary financial results. EMC expects total consolidated revenue to be approximately $2 billion, and earnings per share to be in the range of $0.04 to $0.06 for the second quarter. EMC plans to announce complete second-quarter results on the morning of Wednesday, July 18, 2001. "EMC's business is being impacted to a degree with each unanticipated downward step in the global economy. It now appears that there are fewer dollars being invested in information technology than a year ago," said Joe Tucci, EMC's President and CEO. "The earnings results for EMC's major customers - the bulk of the S&P 500, for example - have been like a ball rolling down a hill for each of the past three quarters. When our customers earn less money, most of them have less to spend on IT, and they take a longer time to spend what they do have. That means lowered revenue and profitability for EMC. We are helping customers manage through their fiscal constraints by delivering more value for their storage dollar than they have ever been able to obtain, but the associated impact on EMC's margins is more significant than anticipated. Although this quarter was a disappointment, we continued to close business at the expense of our competitors throughout the information storage landscape." Bill Teuber, EMC Senior Vice President and Chief Financial Officer, said, "Clearly, the economic slowdown that began in the U.S. has now spread to virtually all international geographies, which were further impacted by a strong U.S. dollar. As a result, sales cycles have continued to elongate. We expect gross margins for the second quarter will be in the mid-40 percent range, reflecting several factors: lower sales volume than anticipated, customer incentive programs, and our competitive pricing actions. We will present further analysis of the factors impacting gross margins in our July 18 conference call." "We generated a significant amount of revenue over the course of the final days of the quarter," continued Teuber. "We are in the process of closing the books and, therefore, the information presented in this announcement is preliminary. We wanted to make sure we communicated as quickly as possible, but we will not be in a position to comment further until we announce full second-quarter results on July 18." For additional information visit www.emc.com