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To: Tabby who wrote (6823)12/16/1996 7:31:00 PM
From: Jeffery E. Forrest   of 18024
 
Net sales of PC systems ..............
increased in the first quarter of fiscal 1997 compared to the corresponding period in fiscal 1996 primarily as a result of increased name recognition and market acceptance of the Company's Micron(TM) brand PC systems and continued growth of the direct sales channel.

Total unit sales were approximately 22% higher in the first quarter of fiscal 1997 compared to the corresponding period in 1996.

A 46% increase in unit sales of Micron brand PC systems was made
possible through manufacturing efficiencies gained in the re-design of the Company's PC manufacturing operation in Nampa, Idaho
.

This increase was partially offset by the effect of the
discontinuance of ZEOS(R) brand PC systems during fiscal 1996. The growth in sales of PC systems was partially attributable to a higher level of sales to governmental entities and an increase in
sales of the Micron Millennia TransPort(TM)
, the Company's modular design multimedia notebook product introduced in the third quarter of fiscal 1996. Joseph M. Daltoso, Chairman and CEO of Micron Electronics, Inc., said, "We are very pleased with the continued growth in unit sales of Micron brand PC systems. Our customers in the direct PC market have consistently recognized the
high quality and price performance characteristics of the award-winning Micron Electronics product
line."
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