Emerson Poynter LLP

Emerson Poynter announces that a class action has been commenced in the United States District Court for the Western District of Texas on behalf of purchasers of Dell Inc. ("Dell") (NASDAQ:DELL) publicly traded securities between February 13, 2003 and September 8, 2006 (the "Class Period").

The complaint charges Dell and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that throughout the Class Period, defendants caused Dell to report inflated financial results, including misstating the accrual and reserves reported on the Company's balance sheet. The complaint alleges that by at least August 2005, the defendants were aware of but concealed from investors the fact that the SEC was investigating the Company's revenue recognition and accounting practices. Unable to maintain the charade, the complaint alleges defendants began reducing sales and profit projections as Dell began missing its own revenue, EPS and unit sales growth targets, causing significant declines in its stock price. In order to support the Company's stock price, the complaint alleges defendants continued concealing the full extent of Dell's problems and promising a quick turnaround.
 
On August 17, 2006, Dell announced its fifth consecutive quarter of disappointing results, again significantly missing its own revenue and EPS targets. The Company also finally revealed the SEC had begun investigating its revenue recognition practices and other accounting practices in August 2005, and announcd that in connection with its own internal accounting review it had recently discovered information that raised potential issues relating to certain periods prior to fiscal 2006. The Company also disclosed that its Audit Committee was undertaking a full review.

Finally, on September 11, 2006, defendants disclosed that as the Audit Committee had not finished its review, the Company would not be able to file its interim financial report for its second quarter of 2007, that the U.S. Attorney's Office for the Southern District of New York had served Dell with a subpoena requesting documents concerning its accounting and financial reporting between 2002 and 2006, and that the Company had indefinitely suspended its ongoing share repurchase program, causing Dell's stock price to continue its decline, with shares trading as low as $20.52 in intra-day trading on September 11, 2006, a decline of more than 50% from its Class Period high.

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