Stock Report | May 22, 2012 | NNM Symbol: DELL | DELL is in the S&P 500

Dell Inc
S&P Recommendation BUY

55555

Price $15.08 (as of May 22, 2012)

12-Mo. Target Price $19.00

Investment Style Large-Cap Growth

UPDATE: PLEASE SEE THE ANALYST'S LATEST RESEARCH NOTE IN THE COMPANY NEWS SECTION

GICS Sector Information Technology Sub-Industry Computer Hardware Key Stock Statistics (Source S&P, Vickers, company reports) 52-Wk Range $18.36 13.29 Trailing 12-Month EPS $1.88 Trailing 12-Month P/E 8.0 $10K Invested 5 Yrs Ago $5,654 Price Performance
30-Week Mov. Avg. 12-Mo. Target Price
20 16

Summary One of the world's 10 leading manufacturers of personal computers, Dell also offers server and storage products and provides IT services.

S&P Oper. EPS 2014E S&P Oper. EPS 2015E P/E on S&P Oper. EPS 2014E Common Shares Outstg. (M)

2.25 NA 6.7 1,762.0

Market Capitalization(B) Yield (%) Dividend Rate/Share Institutional Ownership (%)

$26.572 Nil Nil 70

Beta S&P 3-Yr. Proj. EPS CAGR(%) S&P Credit Rating

1.36 12 A-

Qualitative Risk Assessment

10-Week Mov. Avg. Relative Strength GAAP Earnings vs. Previous Year Up Down No Change Volume Above Avg. Below Avg. STARS

LOW

MEDIUM

HIGH

10 8

Our risk assessment reflects our view of Dell's economies of scale and strong execution in asset management, offset by what we see as competitive pressures on product design and pricing, industry cyclicality, and a shift to greater reliance on retail partners around the world. Quantitative Evaluations
305

Vol. Mil. 150 100 50 0 5 1 D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 3 2 3 2 3 4 2

S&P Quality Ranking

D
5

B+ B B+ AA A+

B-

Relative Strength Rank

4

MODERATE
HIGHEST = 99

42
LOWEST = 1

2009

2010

2011

2012
Options: ASE, CBOE, P, Ph

Revenue/Earnings Data Revenue (Million U.S. $) 1Q 2Q 2013 --2012 15,017 15,658 2011 14,874 15,534 2010 12,342 12,764 2009 16,077 16,434 2008 14,722 14,776

Analysis prepared by Equity Analyst Dylan Cathers on Feb 23, 2012, when the stock traded at $17.40. Highlights

Investment Rationale/Risk

Revenues rose only 0.9% in FY 12 (Jan.), and we estimate just a 1.0% gain in FY 13, and a 1.5% advance in FY 14. The modest increases we expect reflect the current general economic weakness, the exiting of some business, and a shift away from certain lower-margin market segments. We think near-term growth will be affected by hard disk drive supply shortages and softness in the public sector. Longer term, we expect steady growth within the enterprise solutions and services business and gains from recent acquisitions. Operating margins improved notably in FY 12, and we expect further widening going forward, albeit at a slower pace. A richer product mix (including an increased percentage of services sales) and potential savings from improved supply chain management should outweigh pressure on selling prices and investments in the business. New facilities in China should help distribution efficiencies. Operating EPS was $2.13 in FY 12, excluding restructuring and acquisition-related expenses. We project EPS of $2.13 in FY 13, aided by a modest pace of share buybacks, and $2.25 in FY 14.

We believe DELL's multi-year effort to move into new markets and seek operational efficiencies is leading to a more favorable margin profile. The addition of the Perot Systems service operations in November 2009 and, more recently, expansion in the servers, networking and software areas should lift sales and margin potential, in our view. A cyclical rebound in demand for IT spending that we expect to continue through late calendar 2012 should also aid results, despite soft demand in the consumer and public sector areas in the near term. All told, we view the shares as attractively valued, based on our P/E analysis. Risks to our recommendation and target price include the potential for weaker PC market share and margin performance than we project. Acquisition integration might prove less effective than we expect. Applying a target multiple of 8.9X, a discount to Information Technology sector peers in the S&P 500 Index and toward the low end of DELL's historical range to reflect competitive challenges in the PC markets, to our FY 13 EPS estimate of $2.13, we arrive at our 12-month target price of $19.

3Q -15,365 15,394 12,896 15,162 15,646

4Q -16,031 15,692 14,900 13,428 15,989

Year 62,071 62,071 61,494 52,902 61,101 61,133

Earnings Per Share (U.S. $) 2013 E0.47 E0.51 E0.54 2012 0.49 0.48 0.49 2011 0.17 0.28 0.42 2010 0.15 0.24 0.17 2009 0.38 0.31 0.37 2008 0.34 0.31 0.34

E0.61 0.43 0.48 0.17 0.18 0.31

1.88 1.88 1.35 0.73 1.25 1.31

Fiscal year ended Jan. 31. Next earnings report expected: NA. EPS Estimates based on S&P Operating Earnings; historical GAAP earnings are as reported.

Dividend Data No cash dividends have been paid.

Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Business Summary February 23, 2012 CORPORATE OVERVIEW. Dell Inc. is a key player in the personal computer markets that is diversifying into information technology services and data center products. It was number three in global PC unit shipments in 2011, with about a 12% market share according to research firm Gartner, down slightly from 2010. DELL's sales are from PCs (54% of FY 12 (Jan.) total revenue), with 23% from Desktop PCs and 31% from Mobility. Other categories include Software and Peripherals (17%), Servers and Networking (13%), Services (13%), and Storage (3%). Within the PC category, sales of Mobility (mainly notebook PCs) are rising faster than sales of Desktop PCs. Revenue from notebooks pulled approximately even with desktop revenue for the first time in the FY 08 third quarter, and we expect notebooks to lead in the future. Broken out by global segment, Large Enterprise represented 30% of DELL's FY 12 total revenue (29% in FY 11), Public 27% (27%), Small and Medium Business 24% (24%), and Consumer 19% (20%). The customer base is broad. The company is expanding in rapid-growth emerging markets including Brazil, Russia, India and China (BRIC), and DELL's revenue from the BRIC countries rose to represent 13% of fourth quarter revenue in FY 11, up from 11% in the prior-year quarter and 9% in the fourth quarter of FY 09. Revenues derived from outside the U.S. represented 50% of total revenue in FY 11, up from 47% in FY 10 (latest available). Most of the company's long-lived assets are located in the U.S. IMPACT OF MAJOR DEVELOPMENTS. In January 2007, Michael Dell reassumed his role as CEO, while retaining his duties as chairman of the board. We believe this development reinvigorated the corporate culture and streamlined the decision-making process. Historically, DELL thrived on a direct-sale strategy that allowed the company to develop what it calls "customer intimacy" by hearing directly from buyers about what computer features they wanted. The strategy also permitted streamlined production and distribution procedures, which aided margins. A key challenge we see for management at DELL going forward is how to expand retail and international operations while maintaining customer intimacy and elements of low-cost production, such as lean inventory. In FY 08, the company began offering Dell Dimension desktop computers and Inspiron notebook computers in retail stores in the Americas, and announced partnerships with retailers in the U.K., Japan and China. By the end of FY 10, the company's products were available at over 56,000 retail locations worldwide. Retail partners include Best Buy, Staples, Wal-Mart, DSGI, GOME, and Carrefour, among others. On November 3, 2009, the company completed its acquisition of Perot Systems for about $3.9 billion in cash. The combination beefed up DELL's IT services operations significantly and broadened the product portfolio, in our view. CORPORATE STRATEGY. The company continues to pursue market opportunities to capitalize on highermargin areas, recently including data storage, networking, and security. We believe this not only helps DELL's profit margins, but also its competitive position versus rivals. Acquisitions in FY 10 added expertise in systems management (Kace), clustered NAS storage (Exanet), virtual infrastructure management (Scalent), storage compression and deduplication (Ocarina Networks), SaaS application integration (Boomi), and cloud-based medical records management (InSite One). FINANCIAL TRENDS. We believe margins may be a bit erratic in the near term, as the company expands into new markets, but should improve in the long term as volumes increase and more business is generated overseas. Also, a larger services operation should help to steady revenue and margin fluctuations. The company increased its long-term debt to about $6.4 billion at the end of FY 12, from $362 million at the end of FY 08, which we view as part of recent strategies that are based in part on acquisitions. However, we note that DELL held nearly $15 billion in cash, cash equivalents, and short-term investments as of February 3, 2012. Corporate Information Investor Contact L.A. Tyson (512-723-1130) Office One Dell Way, Round Rock, TX 78682. Telephone 512-338-4400. Fax 302-636-5454. Email investor_relations_fulfillment@dell.com Website http://www.dell.com

Officers Chrmn & CEO M.S. Dell Pres S.J. Felice COO & CTO J.R. Clarke SVP & CFO B.T. Gladden SVP, Secy & General Counsel L.P. Tu

Board Members J. W. Breyer D. J. Carty J. Clark L. C. Conigliaro M. S. Dell K. M. Duberstein W. H. Gray, III G. J. Kleisterlee T. W. Luce, III K. S. Luft A. J. Mandl S. Narayen H. R. Perot, Jr.

Domicile Delaware Founded 1984 Employees 109,400 Stockholders 29,320

Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Quantitative Evaluations S&P Fair Value Rank
5+ 1
LOWEST

Expanded Ratio Analysis

2 3 4 5
HIGHEST

Based on S&P's proprietary quantitative model, stocks are ranked from most overvalued (1) to most undervalued (5).

Fair Value Calculation Investability Quotient Percentile Volatility Technical Evaluation Insider Activity

$19.40 Analysis of the stock's current worth, based on S&P's proprietary

quantitative model suggests that DELL is Undervalued by $4.32 or 28.6%.

Price/Sales Price/EBITDA Price/Pretax Income P/E Ratio Avg. Diluted Shares Outstg (M)
Figures based on calendar year-end price

2012 0.45 5.16 6.59 8.00 1,853.0

2011 0.47 6.41 8.54 10.85 1,955.0

2010 0.50 7.34 13.13 18.55 1,962.0

2009 0.47 6.80 8.58 11.51 1,986.0

96
LOWEST = 1 HIGHEST = 100

Key Growth Rates and Averages Past Growth Rate (%) Sales Net Income Ratio Analysis (Annual Avg.) Net Margin (%) % LT Debt to Capitalization Return on Equity (%)
1 Year 3 Years 5 Years 9 Years

DELL scored higher than 96% of all companies for which an S&P Report is available.

0.94 32.52

2.00 17.80

0.75 1.80

5.29 -0.17

LOW BEARISH

AVERAGE

HIGH

Since March, 2012, the technical indicators for DELL have been BEARISH.

5.63 40.56 41.86

4.21 39.38 36.69

4.30 31.51 49.02

4.99 21.61 52.06

UNFAVORABLE

NEUTRAL

FAVORABLE

Company Financials Fiscal Year Ended Jan. 31 Per Share Data (U.S. $) Tangible Book Value Cash Flow Earnings S&P Core Earnings Dividends Payout Ratio Calendar Year Prices:High Prices:Low P/E Ratio:High P/E Ratio:Low Income Statement Analysis (Million U.S. $) Revenue Operating Income Depreciation Interest Expense Pretax Income Effective Tax Rate Net Income S&P Core Earnings 2013 NA NA 1.88 NA NA NA 2012 18.36 14.78 10 8 2012 0.69 2.39 1.88 1.88 NA Nil 2011 17.60 12.99 9 7 2011 0.99 1.84 1.35 1.38 NA Nil 2010 17.52 11.34 13 8 2010 NM 1.16 0.73 0.73 Nil Nil 2009 17.26 7.84 24 11 2009 0.95 1.64 1.25 1.23 Nil Nil 2008 26.04 8.72 21 7 2008 1.03 1.58 1.31 1.28 Nil Nil 2007 30.77 21.61 23 16 2007 1.60 1.34 1.14 1.13 Nil Nil 2006 30.77 21.61 27 19 2006 1.77 1.62 1.46 1.03 Nil Nil 2005 42.30 28.62 29 20 2005 2.61 1.32 1.18 0.88 Nil Nil 2004 42.57 31.14 36 26 2004 2.46 1.11 1.01 0.68 Nil Nil 2003 37.18 22.59 37 22

NA NA NA NA NA NA NA NA

62,071 5,416 936 279 4,240 17.6% 3,492 3,487

61,494 4,460 970 155 3,350 21.3% 2,635 2,675

52,902 3,620 852 160 2,024 29.2% 1,433 1,432

61,101 4,193 769 93.0 3,324 25.5% 2,478 2,445

61,133 4,344 599 45.0 3,856 22.8% 2,947 2,871

57,420 3,541 471 45.0 3,345 22.8% 2,583 2,563

55,908 4,740 393 28.0 4,574 21.9% 3,572 2,494

49,205 4,588 334 16.0 4,445 31.5% 3,043 2,227

41,444 3,807 263 14.0 3,724 29.0% 2,645 1,806

Balance Sheet & Other Financial Data (Million U.S. $) Cash NA Current Assets NA Total Assets NA Current Liabilities NA Long Term Debt NA Common Equity NA Total Capital NA Capital Expenditures NA Cash Flow NA Current Ratio NA % Long Term Debt of Capitalization NA % Net Income of Revenue NA % Return on Assets NA % Return on Equity NA

14,818 29,448 44,533 22,001 6,387 8,917 15,748 675 4,428 1.3 37.5 5.6 8.4 41.9

14,365 29,021 38,599 19,483 5,146 7,766 12,912 444 3,605 1.5 39.9 4.3 7.3 39.3

11,008 24,245 33,652 18,960 3,417 5,641 9,058 367 2,285 1.3 37.7 2.7 4.8 28.9

9,092 20,151 26,500 14,859 1,898 4,271 6,169 440 3,247 1.4 30.8 4.1 9.2 61.9

7,972 19,880 27,561 18,526 362 3,735 4,191 831 3,546 1.1 8.6 4.8 11.1 73.1

9,546 19,939 25,635 17,791 569 4,328 5,008 896 3,054 1.1 11.4 4.5 10.6 61.1

7,042 17,706 23,109 15,927 504 4,129 4,633 728 3,965 1.1 10.9 6.4 15.4 67.3

4,747 16,897 23,215 14,136 505 6,485 6,990 525 3,377 1.2 7.2 6.2 14.3 47.7

4,317 10,633 19,311 10,896 505 6,280 6,785 329 2,908 1.0 7.4 6.4 15.2 47.4

Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Sub-Industry Outlook
Our fundamental outlook for the S&P Computer Hardware sub-industry for the next 12 months is neutral. We believe that the computer hardware industry began to recover from a cyclical downturn in the second half of 2009 and will remain in an expansion phase for several years, despite some near-term dimming of sales because of the Japan earthquake, some further weakness in September 2011, and the flooding in Thailand. Personal computers represent a big part of the industry, and global PC unit shipments increased only about 4% in 2009, followed by growth of about 14% in 2010, as tracked by market research firm IDC. We think PC unit sales were about 1.5% in 2011 and project a roughly 5.0% gain in 2012, based on further economic expansion and satisfaction of pent-up demand. Since mid-2010, PC unit sales appear to have suffered from consumers substituting media tablets, which are smaller and less robust than traditional PCs and not generally counted as PCs, for laptop PCs. While this substitution effect may pressure PC sales, the computer hardware industry overall should benefit from the growth in tablets. Also, the growing popularity of robust mobile computing devices stimulates data traffic to be handled by servers, creating another spur to the industry. Price competition and a long-term trend toward lower average selling prices for PCs should keep global PC industry revenue growth rates below the pace of unit sales by about 500 basis points in 2012. We think computer hardware vendors will continue their efforts to take costs out of their infrastructures as they strive for profitability despite price competition and rising component costs. We see longer-term fundamentals in the computer hardware industry remaining attractive, albeit with lively price competition and pressure on margins. We think that a global need for better computing and communications, especially mobile communications, creates an appetite for a wide range of technology products. We foresee growing demand for Internet-based computing solutions because they offer companies opportunities to reduce costs and improve customer service. Accordingly, servers and data-center computing hardware should benefit from rising demand. However, we also see price competition in servers. We think that hardware vendors have been seeking to offset the negative impact on profits by offering higher-margin services, software, and storage products. Year to date through May 4, the S&P Computer Hardware Index increased 32.9%, compared to an 8.9% gain for the S&P 1500 Index. In 2011, the S&P Computer Hardware Index rose 10.5%, versus a 0.3% drop in the S&P 1500 Index. --Dylan Cathers
0

Stock Performance
GICS Sector: Information Technology Sub-Industry: Computer Hardware Based on S&P 1500 Indexes Month-end Price Performance as of 04/30/12
250

200

150

100

50

2008
Sub-Industry

2009

2010

2011

2012

Sector

S&P 1500

NOTE: All Sector & Sub-Industry information is based on the Global Industry Classification Standard (GICS)

Sub-Industry : Computer Hardware Peer Group*: Computer Hardware - Large System Vendors
Peer Group Dell Inc Hewlett-Packard Toshiba Corp Stock Symbol DELL HPQ TOSBF Stk.Mkt. Cap. (Mil. $) 25,973 42,434 12,716 Recent Stock Price($) 14.74 21.46 3.93 52 Week High/Low($) 18.36/13.29 37.70/21.28 5.38/3.73 Beta 1.36 1.09 NA Yield (%) Nil 2.2 Nil P/E Ratio 8 8 NM Fair Value Calc.($) 19.40 28.90 NA S&P Return on Quality IQ Revenue Ranking %ile (%) B+ ANR 96 46 17 5.6 5.6 1.4 LTD to Cap (%) 37.5 36.4 39.7

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
S&P Analyst Research Notes and other Company News
Johnson, who has left Dell to pursue other opportunities. April 2, 2012 Former SAP president and CEO of Asia-Pacific and Japan, Geraldine McBride, is the new vice-president and general manager of Asia-Pacific Japan services at Dell Inc. She will be in charge of managing the company's services business in the region including sales, delivery, driving growth, and maintaining customer relationships. Her role at the company started as vice-president and global head of the company's applications and business process outsourcing (BPO) services globally. March 13, 2012 10:40 am ET ... S&P MAINTAINS BUY OPINION ON SHARES OF DELL INC. (DELL 17.09****): DELL agrees to acquire SonicWALL, a provider of Unified Threat Management Firewalls. The deal is all cash and has been approved by both boards of directors. Terms were not announced, but when SonicWALL was purchased by its current private equity ownership group in July 2010, it was for $720M according to Capital IQ. The acquisition, which is subject to regulatory approvals, is expected to close in DELL's Jul-Q and be accretive to non-GAAP EPS in the second half of FY 13 (Jan.). The move makes sense to us, as it would broaden DELL's suite of security offerings to enterprises. /D. Cathers February 22, 2012 DELL posts $0.51 vs. $0.53 Q4 non-GAAP EPS despite 2.2% revenue rise. S&P Capital IQ consensus forecast was $0.52. Sees Q1 FY 13 revenues down about 7% sequentially, which aligns with normal seasonality adjusted for the fourteenth week. Sees FY 13 non-GAAP EPS exceeding FY 12's $2.13. Needham downgrades to hold from buy. February 22, 2012 10:09 am ET ... S&P MAINTAINS BUY OPINION ON SHARES OF DELL INC. (DELL 17.15****): Jan-Q operating EPS of $0.51, vs. $0.53, is $0.01 below our estimate. Shares are down, we believe, on the meager revenue growth DELL expects in its first quarter. Given its pruning of businesses and softness in areas such as public sector and consumer, we lower our FY 13 (Jan.) revenue growth forecast to 1.0% from 2.5%. However, we are raising our FY 13 EPS estimate $0.10 to $2.13, as we see a positive mix shift into higher-margin areas such as enterprise solutions and services. We introduce our FY 14 EPS projection of $2.25 and keep our 12-month target price at $19. /D. Cathers February 22, 2012 09:19 am ET ... DELL INC. (DELL 18.21) UNCHANGED, DELL (DELL) POSTS Q4. NEEDHAM DOWNGRADES TO HOLD FROM BUY... Analyst Richard Kugele tells salesforce DELL reported mixed Q4 as slightly better revenue was offset by lower than expected gross margin, shortfall in EPS. Says it's been an impressive run YTD for DELL, surpassing his $17 target as fundamental improvements in its business mix were gradually recognized by investors. However, he sees stock limited to $16-$20 NT as headwinds from HDD shortage, lingering weakness in federal/state & local/US consumer spending, and continued pruning of revenue mix combine to limit top-line growth, bottom-line leverage. B.Brodie February 15, 2012 01:48 pm ET ... S&P LOWERS OPINION ON SHARES OF DELL TO BUY FROM STRONG BUY, ON VALUATION (DELL 17.96****): DELL is scheduled to report Q4 results on February 21, and we look for EPS of $0.52, vs. $0.53, on revenues of about $16.2B. For 2013, we see revenue growth of 2.5%. The modest gain we are calling for reflects continued global economic weakness, particularly in Europe; modest consumer demand for PCs and, in the near term, hard disk drive shortages. We see margins improving going forward, as the company's product mix shifts towards enterprise solutions and services. We keep our FY 13 EPS estimate of $2.03 and our 12-month target price of $19. /D. Cathers January 13, 2012 Dell Inc. announced that Adriana Karaboutis has assumed the role of Global Chief Information Officer, responsible for continuing to drive Dell's IT organization evolution, from managing an efficient and innovative global information infrastructure, to creating innovative breakthroughs that provide technology advances for the company and its customers. Ms. Karaboutis was previously vice president of IT at Dell supporting product groups, manufacturing, procurement and supply chain operations. In her experience at Dell, she has led a transformation of Dell's manufacturing operations, rolling out a new manufacturing execution system globally. Ms. Karaboutis succeeds Robin
Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

January 9, 2012 Dell Inc. announced that the Paul D. Bell, President will retire from the company effective from March 30, 2012. Mr. Bell will continue to perform his current responsibilities through February 3, 2012, and thereafter will continue to assist with the transition of those responsibilities to his successor. In connection with Mr. Bell's retirement, effective February 4, 2012, Dell will move all of its customer business segments (Public, Large Enterprise, SMB and Consumer) under the leadership of, Stephen J. Felice, who was appointed to serve as President and Chief Commercial Officer on January 6, 2012. December 29, 2011 Dell Inc. announced that its former sales director of China SME (small- and medium-sized enterprise) department Mr. Xu Jianping would become general manager of the company's Greater China growth enterprise department. The company also clarified that its former general manager of Greater China growth enterprise department Xu Zhaoyuan has not resigned but was transferred to another post. Working in the company for over six years and serving as a nuclear top executive specializing in the enterprise business in Greater China, Mr. Xu Zhaoyuan has undergone a series of adjustment in organizational structure of the company since 2011. November 16, 2011 DELL posts $0.54 vs. $0.45 Q3 non-GAAP EPS on flat revenue. DELL says, given the uncertain macroeconomic environment and complexity in working through the industry-wide hard drive issue, it is trending to the lower end of the range of its revenue outlook of 1%-5% full fiscal-year growth. November 16, 2011 10:01 am ET ... S&P MAINTAINS STRONG BUY OPINION ON SHARES OF DELL INC. (DELL 15.34*****): Oct-Q operating EPS of $0.54, vs. $0.45, is $0.05 above our estimate. We lower our FY 12 (Jan.) revenue growth estimate to 1% from 3% to reflect a shift in DELL's sales focus, supply shortages of hard disk drives due to the Thailand flooding, and general economic weakness. In FY 13, we see 2.5% growth. We believe the company's shift toward more wide-margin businesses, including services, will benefit it over the longer term. We lift our FY 12 operating EPS estimate by $0.15 to $2.15, but cut FY 13's by $0.07 to $2.03. We keep our 12-month target price of $19. /D. Cathers November 16, 2011 08:40 am ET ... DELL INC. (DELL 15.63) UNCHANGED, DELL (DELL) POSTS Q3. TICONDEROGA SAYS SALES GROWTH STALLS, REITERATES SELL... Analyst Brian White says $15.37B Q3 sales missed his $15.79B estimate, marked DELL's first taste of a negative sales cycle since Oct quarter of '09. Notes although $0.54 pro forma EPS exceeded his $0.48 projection, Street's $0.47, DELL benefited by $0.02 from a lower than expected tax rate, $0.01 from lower share count. He continues to have a hard time reconciling quarter after quarter of lower than expected sales from DELL but EPS upside. Believes the lack of sales growth is hardly a recipe for sustainable, healthy profit growth. Has $9.25 target. B.Brodie

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Analysts' Recommendations
Monthly Average Trend Buy
B

Wall Steet Consensus Opinion

Buy/Hold
BH

Hold
H

Weak Hold
WH

Sell S

No Opinion

DELL Trend

BUY/HOLD Companies Offering Coverage Over 30 firms follow this stock; not all firms are displayed. Argus Research Company Atlantic Equities LLP Auriga USA LLC BMO Capital Markets, U.S. Equity Research Barclays BofA Merrill Lynch Brean Murray, Carret & Co. Capstone Investments Caris & Company Citigroup Inc Collins Stewart LLC Cowen and Company, LLC Craig-Hallum Capital Group LLC Credit Agricole Securities (USA) Inc. Credit Suisse Cross Research LLC Crowell, Weedon & Co. Daiwa Capital Markets America Inc. Daiwa Securities Capital Markets Co. Ltd. Day By Day Deutsche Bank FBN Securities, Inc. First Global Stockbroking (P) Ltd. Gleacher & Company, Inc. Goldman Sachs IDC ISI Group Inc. JP Morgan Jefferies & Company, Inc. Jyske Bank A/S

Wall Street Average

B BH H WH S

Number of Analysts Following Stock 40 30 20

Stock Price ($) 20

16

12

2010

2011

2012

Of the total 55 companies following DELL, 33 analysts currently publish recommendations. No. of Ratings 10 4 15 2 1 1 33 % of Total 30 12 45 6 3 3 100 1 Mo. Prior 3 Mos. Prior 10 11 4 4 16 16 2 2 1 2 1 1 34 36

Buy Buy/Hold Hold Weak Hold Sell No Opinion Total Wall Street Consensus Estimates
Estimates
2.25 2 1.75 1.5

Wall Street Consensus vs. Performance

2014 2015 2013 Actual $1.88

2013

For fiscal year 2013, analysts estimate that DELL will earn $2.12. For fiscal year 2014, analysts estimate that DELL's earnings per share will grow by 6% to $2.24.

2011

2012

Fiscal Years 2014 2013 2014 vs. 2013 Q1'14 Q1'13 Q1'14 vs. Q1'13

Avg Est. 2.24 2.12 6% 0.53 0.46 15%

High Est. 2.48 2.30 8% 0.59 0.52 13%

Low Est. 1.90 1.80 6% 0.49 0.38 29%

# of Est. 26 32 -19% 14 28 -50%

Est. P/E 6.7 7.1 -6% 28.2 32.5 -13%

A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300 Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over the past 15 months.

Source: S&P, Capital IQ Estimates, Inc. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Glossary
S&P STARS Since January 1, 1987, Standard and Poor's Equity Research Services has ranked a universe of common stocks based on a given stock's potential for future performance. Under proprietary STARS (STock Appreciation Ranking System), S&P equity analysts rank stocks according to their individual forecast of a stock's future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350 Index or S&P 500 Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analyst's own models as well as internal proprietary models resulting from dynamic data inputs. S&P 12-Month Target Price The S&P equity analyst's projection of the market price a given security will command 12 months hence, based on a combination of intrinsic, relative, and private market valuation metrics, including S&P Fair Value. Investment Style Classification Characterizes the stock as Growth or Value, and indicates its capitalization level. Growth is evaluated along three dimensions (earnings, sales and internal growth), while Value is evaluated along four dimensions (book-to-price, cash flow-to-price, dividend yield and sale-to-price). Growth stocks score higher than the market average on growth dimensions and lower on value dimensions. The reverse is true for Value stocks. Certain stocks are classified as Blend, indicating a mixture of growth and value characteristics and cannot be classified as purely growth or value. S&P EPS Estimates Standard & Poor's earnings per share (EPS) estimates reflect analyst projections of future EPS from continuing operations, and generally exclude various items that are viewed as special, non-recurring, or extraordinary. Also, S&P EPS estimates reflect either forecasts of S&P equity analysts; or, the consensus (average) EPS estimate, which are independently compiled by Capital IQ, a data provider to Standard & Poor's Equity Research. Among the items typically excluded from EPS estimates are asset sale gains; impairment, restructuring or merger-related charges; legal and insurance settlements; in process research and development expenses; gains or losses on the extinguishment of debt; the cumulative effect of accounting changes; and earnings related to operations that have been classified by the company as discontinued. The inclusion of some items, such as stock option expense and recurring types of other charges, may vary, and depend on such factors as industry practice, analyst judgment, and the extent to which some types of data is disclosed by companies. S&P Core Earnings Standard & Poor's Core Earnings is a uniform methodology for adjusting operating earnings by focusing on a company's after-tax earnings generated from its principal businesses. Included in the Standard & Poor's definition are employee stock option grant expenses, pension costs, restructuring charges from ongoing operations, write-downs of depreciable or amortizable operating assets, purchased research and development, M&A related expenses and unrealized gains/losses from hedging activities. Excluded from the definition are pension gains, impairment of goodwill charges, gains or losses from asset sales, reversal of prior-year charges and provision from litigation or insurance settlements. Qualitative Risk Assessment The S&P equity analyst's view of a given company's operational risk, or the risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a company's operations, as opposed to risk and volatility measures associated with share prices. Quantitative Evaluations In contrast to our qualitative STARS recommendations, which are assigned by S&P analysts, the quantitative evaluations described below are derived from proprietary arithmetic models. These computer-driven evaluations may at times contradict an analyst's qualitative assessment of a stock. One primary reason for this is that different measures are used to determine each. For instance, when designating STARS, S&P analysts assess many factors that cannot be reflected in a model, such as risks and opportunities, management changes, recent competitive shifts, patent expiration, litigation risk, etc. S&P Quality Ranking Growth and stability of earnings and dividends are deemed key elements in establishing S&P's Quality Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. The range of scores in the array of this sample has been aligned with the following ladder of rankings: A+ A AB+ NR Highest High Above Average Average Not Ranked B BC D Below Average Lower Lowest In Reorganization as an indicator of potential medium-to-long term return and as a caution against downside risk. The measure takes into account variables such as technical indicators, earnings estimates, liquidity, financial ratios and selected S&P proprietary measures. S&P's IQ Rationale: Dell Inc Proprietary S&P Measures Technical Indicators Liquidity/Volatility Measures Quantitative Measures IQ Total Raw Score 37 21 15 58 131 Max Value 115 40 20 75 250

Volatility Rates the volatility of the stock's price over the past year. Technical Evaluation In researching the past market history of prices and trading volume for each company, S&P's computer models apply special technical methods and formulas to identify and project price trends for the stock. Relative Strength Rank Shows, on a scale of 1 to 99, how the stock has performed versus all other companies in S&P's universe on a rolling 13-week basis. Global Industry Classification Standard (GICS) An industry classification standard, developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). GICS is currently comprised of 10 Sectors, 24 Industry Groups, 68 Industries, and 154 Sub-Industries. S&P Issuer Credit Rating A Standard & Poor's Issuer Credit Rating is a current opinion of an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation, as it does not take into account the nature of and provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. In addition, it does not take into account the creditworthiness of the guarantors, insurers, or other forms of credit enhancement on the obligation. The Issuer Credit Rating is not a recommendation to purchase, sell, or hold a financial obligation issued by an obligor, as it does not comment on market price or suitability for a particular investor. Issuer Credit Ratings are based on current information furnished by obligors or obtained by Standard & Poor's from other sources it considers reliable. Standard & Poor's does not perform an audit in connection with any Issuer Credit Rating and may, on occasion, rely on unaudited financial information. Issuer Credit Ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Exchange Type ASE - American Stock Exchange; AU - Australia Stock Exchange; BB - Bulletin Board; NGM - Nasdaq Global Market; NNM - Nasdaq Global Select Market; NSC Nasdaq Capital Market; NYS - New York Stock Exchange; OTN - Other OTC (Over the Counter); OTC Over the Counter; QB - OTCQB; QX - OTCQX; TS - Toronto Stock Exchange; TXV - TSX Venture Exchange; NEX NEX Exchange. S&P Equity Research Services Standard & Poor's Equity Research Services U.S. includes Standard & Poor's Investment Advisory Services LLC; Standard & Poor's Equity Research Services Europe includes McGraw-Hill Financial Research Europe Limited trading as Standard & Poor's; Standard & Poor's Equity Research Services Asia includes McGraw-Hill Financial Singapore Pte. Limited's

S&P Fair Value Rank Using S&P's exclusive proprietary quantitative model, stocks are ranked in one of five groups, ranging from Group 5, listing the most undervalued stocks, to Group 1, the most overvalued issues. Group 5 stocks are expected to generally outperform all others. A positive (+) or negative (-) Timing Index is placed next to the Fair Value ranking to further aid the selection process. A stock with a (+) added to the Fair Value Rank simply means that this stock has a somewhat better chance to outperform other stocks with the same Fair Value Rank. A stock with a (-) has a somewhat lesser chance to outperform other stocks with the same Fair Value Rank. The Fair Value rankings imply the following: 5-Stock is significantly undervalued; 4-Stock is moderately undervalued; 3-Stock is fairly valued; 2-Stock is modestly overvalued; 1-Stock is significantly overvalued. S&P Fair Value Calculation The price at which a stock should trade at, according to S&P's proprietary quantitative model that incorporates both actual and estimated variables (as opposed to only actual variables in the case of S&P Quality Ranking). Relying heavily on a company's actual return on equity, the S&P Fair Value model places a value on a security based on placing a formula-derived price-to-book multiple on a company's consensus earnings per share estimate. Insider Activity Gives an insight as to insider sentiment by showing whether directors, officers and key employees who have proprietary information not available to the general public, are buying or selling the company's stock during the most recent six months. Funds From Operations FFO FFO is Funds from Operations and equal to a REIT's net income, excluding gains or losses from sales of property, plus real estate depreciation. Investability Quotient (IQ) The IQ is a measure of investment desirability. It serves

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
offices in Singapore, Standard & Poor's Investment Advisory Services (HK) Limited in Hong Kong, Standard & Poor's Malaysia Sdn Bhd, and Standard & Poor's Information Services (Australia) Pty Ltd. Abbreviations Used in S&P Equity Research Reports CAGR- Compound Annual Growth Rate; CAPEX- Capital Expenditures; CY- Calendar Year; DCF- Discounted Cash Flow; EBIT- Earnings Before Interest and Taxes; EBITDAEarnings Before Interest, Taxes, Depreciation and Amortization; EPS- Earnings Per Share; EV- Enterprise Value; FCF- Free Cash Flow; FFO- Funds From Operations; FY- Fiscal Year; P/E- Price/Earnings ; PEG RatioP/E-to-Growth Ratio; PV- Present Value; R&D- Research & Development; ROE- Return on Equity; ROI- Return on Investment; ROIC- Return on Invested Capital; ROAReturn on Assets; SG&A- Selling, General & Administrative Expenses; WACC- Weighted Average Cost of Capital Dividends on American Depository Receipts (ADRs) and American Depository Shares (ADSs) are net of taxes (paid in the country of origin). underperform the total return of a relevant benchmark over the coming 12 months, and the share price not anticipated to show a gain. Poor's or an affiliate earning compensation in addition to the subscription fees or other compensation for services rendered by Standard & Poor's. A reference to a particular investment or security by Standard & Poor's and one of its affiliates is not a recommendation to buy, sell, or hold such investment or security, nor is it considered to be investment advice. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address. S&P Capital IQ and/or one of its affiliates has performed services for and received compensation from this company during the past twelve months.

555551-STARS (Strong Sell): Total return is

expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis. Relevant benchmarks: In North America the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index. For All Regions: All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this research report. S&P Global Quantitative Recommendations Distribution In Europe: As of March 30, 2012, Standard & Poor's Quantitative Services Europe recommended 49.0% of issuers with buy recommendations, 19.0% with hold recommendations and 30.0% with sell recommendations. In Asia: As of March 30, 2012, Standard & Poor's Quantitative Services Asia recommended 35.9% of issuers with buy recommendations, 21.0% with hold recommendations and 29.0% with sell recommendations. Globally: As of March 30, 2012, Standard & Poor's Quantitative Services globally recommended 46.0% of issuers with buy recommendations, 20.0% with hold recommendations and 33.0% with sell recommendations. Additional information is available upon request.

Required Disclosures
In contrast to the qualitative STARS recommendations covered in this report, which are determined and assigned by S&P equity analysts, S&Ps quantitative evaluations are derived from S&Ps proprietary Fair Value quantitative model. In particular, the Fair Value Ranking methodology is a relative ranking methodology, whereas the STARS methodology is not. Because the Fair Value model and the STARS methodology reflect different criteria, assumptions and analytical methods, quantitative evaluations may at times differ from (or even contradict) an equity analysts STARS recommendations. As a quantitative model, Fair Value relies on history and consensus estimates and does not introduce an element of subjectivity as can be the case with equity analysts in assigning STARS recommendations. S&P Global STARS Distribution In North America: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services North America recommended 34.5% of issuers with buy recommendations, 57.9% with hold recommendations and 7.6% with sell recommendations. In Europe: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services Europe recommended 30.1% of issuers with buy recommendations, 49.4% with hold recommendations and 20.5% with sell recommendations. In Asia: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services Asia recommended 35.9% of issuers with buy recommendations, 54.3% with hold recommendations and 9.8% with sell recommendations. Globally: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services globally recommended 34.0% of issuers with buy recommendations, 56.3% with hold recommendations and 9.7% with sell recommendations.

Disclaimers
With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. With respect to reports issued to clients in German and in the case of inconsistencies between the English and German version of a report, the English version prevails. Neither S&P nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not necessarily indicative of future results.

Other Disclosures
This report has been prepared and issued by Standard & Poor's and/or one of its affiliates. In the United States, research reports are prepared by Standard & Poor's Investment Advisory Services LLC ("SPIAS"). In the United States, research reports are issued by Standard & Poor's ("S&P"); in the United Kingdom by McGraw-Hill Financial Research Europe Limited, which is authorized and regulated by the Financial Services Authority and trades as Standard & Poor's; in Hong Kong by Standard & Poor's Investment Advisory Services (HK) Limited, which is regulated by the Hong Kong Securities Futures Commission; in Singapore by McGraw-Hill Financial Singapore Pte. Limited (MHFSPL), which is regulated by the Monetary Authority of Singapore; in Malaysia by Standard & Poor's Malaysia Sdn Bhd ("S&PM"), which is regulated by the Securities Commission; in Australia by Standard & Poor's Information Services (Australia) Pty Ltd ("SPIS"), which is regulated by the Australian Securities & Investments Commission; and in Korea by SPIAS, which is also registered in Korea as a cross-border investment advisory company. The research and analytical services performed by SPIAS, McGraw-Hill Financial Research Europe Limited, MHFSPL, S&PM, and SPIS are each conducted separately from any other analytical activity of Standard & Poor's. Standard & Poor's or an affiliate may license certain intellectual property or provide pricing or other services to, or otherwise have a financial interest in, certain issuers of securities, including exchange-traded investments whose investment objective is to substantially replicate the returns of a proprietary Standard & Poor's index, such as the S&P 500. In cases where Standard & Poor's or an affiliate is paid fees that are tied to the amount of assets that are invested in the fund or the volume of trading activity in the fund, investment in the fund will generally result in Standard &

Standard & Poor's, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness or adequacy of this material, and S&P Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of the information provided by the S&P Parties. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages. Capital IQ is a business of Standard & Poor's.

55555 5-STARS (Strong Buy): Total return is

expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.

55555 4-STARS (Buy): Total return is expected to

outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.

55555 3-STARS (Hold): Total return is expected to

closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.

55555 2-STARS (Sell): Total return is expected to

Ratings from Standard & Poor's Ratings Services are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. Standard & Poor's assumes no obligation to update its opinions following publication in any form or format. Standard & Poor's ratings should not be relied on and are not substitutes for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. Standard & Poor's rating opinions do not address the suitability of any security. Standard & Poor's does not act as a fiduciary. While Standard & Poor's has obtained information from sources it believes to be reliable,

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
Standard & Poor's does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Advice should be sought from a financial adviser regarding the suitability of an investment, taking into account the specific investment objectives, financial situation or particular needs of any person in receipt of the recommendation, before the person makes a commitment to purchase the investment product. For residents of Malaysia - All queries in relation to this report should be referred to Ching Wah Tam. For residents of Indonesia - This research report does not constitute an offering document and it should not be construed as an offer of securities in Indonesia, and that any such securities will only be offered or sold through a financial institution. For residents of the Philippines - The securities being offered or sold have not been registered with the Securities and Exchange Commission under the Securities Regulation Code of the Philippines. Any future offer or sale thereof is subject to registration requirements under the Code unless such offer or sale qualifies as an exempt transaction. U.S. STARS Cumulative Model Performance Hypothetical Growth Due to Price Appreciation of $100 For the Period 12/31/1986 through 04/30/2012 equities within each STARS category at December 31, 1986 were equally weighted. Thereafter, additions to the composition of the equities in each STARS category are made at the average value of the STARS category at the preceding month end with no rebalancing. Deletions are made at the closing price of the day that the deletion is made. Performance was calculated from inception through March 31, 2003 on a monthly basis. Thereafter, performance is calculated daily. Equities in each STARS category will change over time, and some or all of the equities that received STARS rankings during the time period shown may not have maintained their STARS ranking during the entire period. The model performance does not consider taxes and brokerage commissions, nor does it reflect the deduction of any advisory or other fees charged by advisors or other parties that investors will incur when their accounts are managed in accordance with the models. The imposition of these fees and charges would cause actual performance to be lower than the performance shown. For example, if a model returned 10 percent on a $100,000 investment for a 12-month period (or $10,000) and an annual asset-based fee of 1.5 percent were imposed at the end of the period (or $1,650), the net return would be 8.35 percent (or $8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.1%, a total fee of $5,375 and a cumulative net return of 27.2% (or $27,200). Fees deducted on a frequency other than annual would result in a different cumulative net return in the preceding example. The Standard & Poor's 500 index is the benchmark for U.S. STARS. The S&P 500 index is calculated in U.S. dollars and does not take into account the reinvestment of dividends. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The S&P 500 index includes a different number of constituents and has different risk characteristics than the STARS equities. Some of the STARS equities may have been included in the S&P 500 index for some (but not necessarily all) of the period covered in the chart, and some such equities may not have been included at all. The S&P 500 excludes ADRs and ADSs. The methodology for calculating the return of the S&P 500 index differs from the methodology of calculating the return for STARS. Past performance of the S&P 500 index is no guarantee of future performance. An investment based upon the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investor's shares may be worth more or less than their original cost. For residents of Australia This report is distributed by Standard & Poors Information Services (Australia) Pty Ltd ("SPIS") in Australia. The entirety of this report is approved by Peter Willson, who has reviewed and authorised its content as at the date of publication. Any express or implied opinion contained in this report is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s) alone. The information in this report has not

Standard & Poor's keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of Standard & Poor's may have information that is not available to other Standard & Poor's business units. Standard & Poor's has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

Standard & Poor's Ratings Services did not participate in the development of this report. Standard & Poor's may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. Standard & Poor's reserves the right to disseminate its opinions and analyses. Standard & Poor's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via Standard & Poor's publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

S&P 500 2,400

5 STARS

4 STARS

3 STARS

2 STARS

1 STARS

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material is not intended for any specific investor and does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.

1,600

800

0 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates do not have the necessary licenses. For residents of the U.K. - This report is only directed at and should only be relied on by persons outside of the United Kingdom or persons who are inside the United Kingdom and who have professional experience in matters relating to investments or who are high net worth persons, as defined in Article 19(5) or Article 49(2) (a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, respectively. For residents of Singapore - Anything herein that may be construed as a recommendation is intended for general

The performance above represents only the results of Standard & Poor's model portfolios. Model performance has inherent limitations. Standard & Poor's maintains the models and calculates the model performance shown, but does not manage actual assets. The U.S. STARS model performance chart is only an illustration of Standard & Poor's (S&P) research; it shows how U.S. common stocks, ADRs (American Depositary Receipts) and ADSs (American Depositary Shares), collectively equities, that received particular STARS rankings performed. STARS categories are models only; they are not collective investment funds. The STARS performance does not show how any actual portfolio has performed. STARS model performance does not represent the results of actual trading of investor assets. Thus, the model performance shown does not reflect the impact that material economic and market factors might have had on decision-making if actual investor money had been managed. Performance is calculated using a time-weighted rate of return. While model performance for some or all STARS categories performed better than the S&P 500 for the period shown, the performance during any shorter period may not have, and there is no assurance that they will perform better than the S&P 500 in the future. STARS does not take into account any particular investment objective, financial situation or need and is not intended as an investment recommendation or strategy. Investments based on the STARS methodology may lose money. High returns are not necessarily the norm and there is no assurance that they can be sustained. Past model performance of STARS is no guarantee of future performance. For model performance calculation purposes, the

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | May 22, 2012 | NNM Symbol: DELL

Dell Inc
been prepared for use by retail investors and has been prepared without taking account of any particular person's financial or investment objectives, financial situation or needs. Before acting on any advice, any person using the advice should consider its appropriateness having regard to their own or their clients' objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product and consider the statement before making any decision or recommendation about whether to acquire the product. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any adviser and any such adviser must accordingly make their own assessment taking into account an individual's particular circumstances. SPIS holds an Australian Financial Services Licence Number 258896. Please refer to the SPIS Financial Services Guide for more information at www.fundsinsights.com.au.

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.