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                                              Digital Equipment Corporation
                                          Maynard, Massachusetts 01754-2571
Editorial contact:

Gloria Bates
Digital Equipment Corporation                              
(508) 841-5365                                    

Karen Kane
General Instrument Corporation
(312) 541-5011

                 DIGITAL EQUIPMENT CORPORATION AND
            GENERAL INSTRUMENT CORPORATION FORM ALLIANCE
         TO DELIVER END-TO-END INTERACTIVE VIDEO CAPABILITY

     Digital's video server architecture and GI's DigiCipher II
        digital compression technology to accelerate market
             penetration of interactive video services

MAYNARD, Mass. -- July 11, 1994 -- Digital Equipment Corporation
and General Instrument Corporation (NYSE: GIC) today announced they
are presenting end-to-end interactive video system solutions to
network providers of interactive information services.  The systems
include Digital's open Video and Interactive Information
Architecture (VIIA) and GI's DigiCipher II MPEG-compliant satellite
encryption system and DigiCable addressable set-top terminals with
LinX computer-powered interactive modules.

     "A number of different hardware and software providers in the
interactive video arena have recognized the individual strengths
that General Instrument and Digital offer," said Charles F. Christ,
vice president of Digital's Storage Business Unit.  "Combining
Digital's microprocessor, video server and storage technologies
with GI's set-top terminal products and technologies makes possible
a wide range of interactive video programming capable of being
viewed by large numbers of users simultaneously."

     "This agreement signifies another endorsement of GI's
established digital compression technology," said Hal Krisbergh,
president of the GI Communications Division of General Instrument.  
"DigiCipher, and its cable component DigiCable, offer a means of
providing up to 10 channels of programming in the same space used
today by a single channel.  By combining Digital's product and
technology strengths with General Instrument's large installed
base, the two companies provide more options for consumers seeking
access to a range of new entertainment and learning products."

     General Instrument developed its LinX module to serve as an
open platform for a number of applications providers.  The LinX
module gives GI's addressable terminals the power of a computer,
allowing for any number of future interactive applications.

     Digital's VIIA solution provides a robust hardware and layered
software platform based on open standards for easy integration with
existing technologies, as well as streamlined low-cost development
of new hardware and software capabilities.  The VIIA approach
comprises a range of Digital's processing, data storage and
management products, including Alpha AXP processors, StorageWorks
disk storage arrays and Digital Linear Tape library systems. The
server platform also incorporates an interactive gateway unit, a
server management unit, a networking switch linking the various
elements and software, written in object-oriented UNIX, to manage
the elements of the server platform and the interface with the
set-top terminal.

     General Instrument Corporation, headquartered in Chicago, is a
world leader in broadband transmission, distribution and access
control technologies for cable, satellite, telephony and
terrestrial broadcasting applications, high definition television
technology, and discrete power rectifying components.

     Digital Equipment Corporation is the world's leader in open
client/server solutions from personal computing to integrated
worldwide information systems.  Digital's scalable Alpha AXP
platforms, storage, networking, software and services, together
with industry-focused solutions from business partners, help
organizations compete and win in today's global marketplace.
                                ####

Note to Editors:  Alpha AXP, Digital, the Digital logo, GIGAswitch
                  and StorageWorks are trademarks of Digital
                  Equipment Corporation.

                  UNIX is a registered trademark in the United
                  States and other countries, licensed exclusively
                  through X/Open Company, Ltd.

CORP/95/554
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