Kingston Technology
Cuts Memory Module Prices by 50%
Fountain Valley, CA -- (September 3, 1996 )
Kingston Technology Company today announced an immediate price reduction of
up to 50 percent on its entire line of memory products. This reduction, made
possible by the further decline in DRAM component prices used by Kingston to
manufacture its memory modules, will lower the Manufacturer's Suggested Retail
Price of Kingston's product offerings to unprecedented levels compared to memory
products offered by PC and workstation manufacturers. With this
reduction, customers will be able to purchase memory for under $15 per
megabyte.
"The DRAM market has been especially volatile since last December
when component supply exceeded demand for the first time in over three
years. The result was serious inventory problems for the DRAM and system
manufacturers, causing the falling prices which have characterized the
memory market this year", said Gary MacDonald, vice-president of marketing,
Kingston. "In Kingstons opinion, the DRAM component costs have again
changed sufficiently where a price reduction is appropriate, just as we
have done on three other occasions earlier this year.
"As the leading manufacturer of memory modules, Kingston is the
standard of premier quality and also plays a critical role in establishing
price points for the market", continued MacDonald. "Especially in the
commercial market of the PC industry which serves Fortune 1000 type
businesses and major system manufacturers, who constitute our primary
customers", he added.
"Sudden price fluctuations -- up or down -- wreak havoc in the distribution
channel and create an unpredictable business environment for everyone. We
feel we have a responsibility to provide stability in the market, to balance
the needs of our customers, suppliers and the end-user, regardless of there
being an over- or under-supply of DRAM in the market", commented MacDonald.
Kingston has established a broad product line of more than 1,200
modules supporting more than 3,000 computers. Kingstons products are
custom designed to the exact specifications of the individual machine and
manufacturer to insure the memory is completely compatible and has the
highest level of reliability possible. Kingston products support over 30
major brands of personal computers, workstations, servers, printers,
scanners and other electronic devices.
In manufacturing memory modules, Kingston purchases DRAM
components from the leading DRAM manufacturers, then assembles, tests and
qualifies 100 percent of all its products prior to shipping. This is done
using its highly acclaimed, just-in-time manufacturing model, which
enables Kingston to avoid stockpiling of inventory and to optimize market
and supply conditions.
Kingston has become one of the most influential companies in the
global memory industry, with $1.3 billion in 1995 sales. The company says
the reduced prices will not cause it to revise its projected 1996 sales of
$1.6 billion. Kingston products are marketed through a worldwide network
of distributors, major reseller chains, and independent dealers. Its
customer list also includes Compaq, Digital, Hewlett-Packard, IBM, Sun
Microsystems, Silicon Graphics Incorporated and Toshiba. Kingston was
recently acquired by Softbank Corporation as one of its infrastructure
companies which include Yahoo! and Ziff-Davis Publishing. Kingston is ISO
9001 certified as part of a continuing global effort to assure customers
with the highest levels of both quality products and service.
Editor's Note: For additional information, or executive interviews,
please contact Peggy Kelly, Kingston Technology Company, 17600 Newhope
Street, Fountain Valley, CA 92708, (714) 435-2615 (Voice),
714/438-2720--(FAX).

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