AST RESEARCH TO ENHANCE No. 1 POSITION IN CHINA WITH NEW TIANJIN
HEADQUARTERS 

Also Announces China's Biggest PC Contract

IRVINE, Calif., Sept. 9, 1993 -- To extend its leading market share
position within the world's fastest-growing economy, AST Research Inc.
today announced plans for AST China, a joint venture with the People's
Republic of China government that will be headquartered in Tianjin,
incorporating full-service marketing, sales, service and manufacturing
operations.

The announcement was made at a contract signing ceremony held in Beijing
involving more than 500 guests, including Safi Qureshey, AST president and
chief executive officer, senior Chinese government officials and AST
resellers and customers.

In addition to AST China, the company also announced it has opened new
sales offices in Shanghai and Chengdu, and has completed the largest PC
contract ever negotiated by any PC company in China--an $80 million deal
with Legend Technology Ltd. involving an estimated 40,000 386- and
486-based PCs over the next 11 months. As one of AST China's largest
resellers, Legend has bolstered its Beijing sales operations by appointing
sub-dealers in Guangzhou, Hangzhou, Nanjing, Xian and other key cities in
order to prepare itself for the anticipated rise in demand for AST
products.

"China represents the world's most promising market for PCs and other high
technology products," said Qureshey. "Economic reform has been very
successful and the recent promotion of the country's public-oriented
economic system will result in higher demand for PC systems."

AST began selling products in China in 1985 and was one of the first
companies to recognize the vast market potential within the region. Since
then, the company's products have continually grown in popularity,
vaulting AST to its premier market share leader position. According to
International Data Corp., AST held 27 percent of the $439 million Chinese
PC market in calendar year 1992, with growth forecasted for the PC market
at a 22 percent average annual rate between now and the year 2000.

"Our new joint venture marks a leap forward in the evolution of the
company's long-term commitment to the Chinese market," said Qureshey. "Our
goal is to become China's most-valued partner for PC systems. We are in a
unique position to better serve the Chinese market by offering a broad
selection of high-quality products, backed by a superior service and
support network that will be based entirely within the country.

"Our partnership with the Chinese government will play a key role in AST's
strategy to capture additional worldwide market share. It will not only
strengthen the company's No. 1 position in China, it also will serve to
enhance our presence throughout the entire Asia/Pacific region. "

In addition to manufacturing PCs, AST China will work with the Chinese
government and local resellers to develop the market for PC-based products
to private businesses and home users through marketing, training and
educational programs. Presently, more than 90 percent of PC sales in China
are to government agencies. Over the next year, AST plans to establish a
nationwide sales and service network for resellers and end users,
consisting of eight sales offices and more than 10 service centers. In
addition, the company will begin to address the home computer market
through department stores and other consumer channel outlets.

"Manufacturing is only one element of the equation," said Phillip Wong, AST
vice president, Asia-Pacific, who oversees the AST China operations.
"Through the efforts of our partnership, we intend to help establish a
thriving local market for high-tech products that will help revolutionize
the way the Chinese people work and live. Local full-service operations
will not only enable AST to supply Chinese government agencies with
computers, it will also provide the necessary infrastructure to help
business and home users take maximum advantage of new technologies.

State-of-the-Art Tianjin Facility

Located in Tianjin, approximately 60 miles southeast of Beijing, AST China
is scheduled to begin operation in September, 1994. The project is a
result of a joint venture, majority owned by AST, with the Tianjin
Economic-Technological Area Business Development Co., a government agency
established by the Tianjin Electronic and Instrumental Industry Authority
and governed by China's Ministry of Electronic Industry. Under terms of
the joint venture agreement, AST will retain 90 percent ownership, with
total investment not to exceed $16 million.

AST China will operate from a 260,000 square-foot facility located in the
Tianjin Economic-Technologic Development Area, an economic zone
established by the Chinese government in 1984 especially for foreign joint
ventures and/or wholly-owned foreign enterprises. Construction of the
building, which is located next to Motorola's China headquarters, will
begin in November.

Once operational, AST China will manufacture, distribute and repair PC
systems, while providing post-sale technical support to the company's
customers and end users. Employment during the first year of operation is
expected to number more than 400, consisting of manufacturing, marketing,
sales, administration and technical support personnel.

AST China represents the company's eighth manufacturing facility worldwide,
and the third in the Asia/Pacific region. It joins world-class facilities
in Hong Kong, Taiwan, Scotland and the United States to provide worldwide
supplies in each of AST's major markets. Production efforts--which will
initially consist of final assembly, with printed circuit board assembly
phased-in at a later date--will be led by Billie Lui, who was recently
named vice president of AST's Asia manufacturing operations.

"We expect that the increased demand and manufacturing capacity created by
AST China will further enhance the company's volume purchasing leverage,
which will enable AST to deliver products, worldwide, that are even more
competitive than they are today," said Qureshey.

AST selected Tianjin as the site for its China headquarters because of its
proximity to Beijing, in addition to the region's conveniently-located
air, sea and ground transportation infrastructures, which will enable
quick and efficient product deliveries to customers.

Unique Marketing Position

With its broad selection of products, AST is in a unique position to supply
innovative PC-based solutions to Chinese government agencies, private
businesses and home users.

In addition to traditional keyboard-based PCs, AST will leverage its market
leading position in pen-enabled technologies, recently acquired in the
Tandy/GRiD acquisition, to develop PCs and applications software that are
well-suited for the Chinese stroke-based written language. Products such
as the GRiD Convertible and PalmPad will be marketed--in combination with
applications software developed by AST's PenRight! software operations--as
quicker and more-efficient solutions to information capture, processing
and communications functions which are now performed only with
keyboard-based systems.

Company Background

AST Research Inc., is ranked No. 367 on the 1992 Fortune 500 list of
America's largest industrial companies. In July 1993 AST acquired Tandy
Corp. 's PC manufacturing business. The acquisition makes AST the No. 4
U.S. and No. 6 worldwide personal computer company, according to
International Data Corp.'s calendar year 1992 unit volume shipment data.
These figures includes AST, Tandy, GRiD and Victor brands manufactured by
AST.

AST's award-winning product lines include desktop, file server, notebook
and pen-enabled computers marketed under the Advantage!, Bravo, Premmia,
Manhattan SMP, PowerExec, GRiD and Victor brands. PenRight! is a DOS-based
graphical-user interface and handwriting recognition system.

AST reported overall record year-end revenues of $1.412 billion for fiscal
year 1993. The company is represented in 100 countries and operates 41
international subsidiaries and sales offices.

AST's corporate headquarters is located at 16215 Alton Parkway, Irvine, CA
92718. Telephone (714) 727-4141, (800) 876-4278. Fax: (714) 727-9355

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