EMC CORPORATION An Overview of Financial Performance November 20, 2007 Analysis by Stephanie Snyder and Corrie Livesay

Key Statistics EMC As of 11/20/07 Purchase Price $12.98 Current Price $ Week High $ Week Low $12.57 Beta1.89 Current P/E Forward P/E Year Est. Growth Rate 14.19% Earnings/Share.71 SOURCE: moneycentral.com

Recent News EMC innovation strategy goes beyond storage The company wants to be known as an information infrastructure vendor now. Kathleen Lau (ComputerWorldCanada) 19 November 2007 ► ► Lewis, along with other EMC executives discussed the company's plan to continue innovating through research and development, acquisitions, integration, and partners at an EMC Innovation Day Wednesday. ► ► This year, EMC spent 12 percent of its revenue on R&D, and an average of US$2 billion a year acquiring 30 technology companies over the last four years, with the goal of providing customers "best of breed innovative products and solutions for their information infrastructure needs," according to EMC's chairman and CEO, Joe Tucci. EMC CEO Has 'No Intention“ Of Selling VMware Stake By WILLIAM M. BULKELEY November 14, :50 p.m. ► ► EMC Corp. chairman and Chief Executive Joseph Tucci said in a speech in Boston to technology analysts that he has "no intention of selling more of VMware," which is 86% owned by EMC. EMC ► ► EMC sold a minority stake in VMware Inc. to the public in August in the hottest initial public offering of the year at $29 a share.VMware

5 year stock performance SOURCE: moneycentral.com

Analysts’ Targets SOURCE: smartmoney.com

Growth Rate ► No dividends. ► Find growth rate for sales over past 4 years. ► (11,155,090/5,438,352)^(1/4)-1= 19.67% ► Analysts recommended a 16.3% 5-year growth rate so we took the average to find a growth rate of 18%.

3-stage Growth Model

Technical Analysis Bollinger Bands and RSI

Technical Analysis Moving Averages

Relative Valuation P/EEPS Current P/E27.6Low Estimate Forward P/E27.4Avg. Estimate Industry P/E22.8High Estimate EPS (.67) 2007 EPS (.72) 2007 EPS (.78) 2008 EPS (.74) 2008 EPS (.85) 2008 EPS (.95) P/E 22.8$15.28$16.42$17.78$16.87$19.38$21.66 P/E 27.4$18.36$19.73$21.37$20.28$23.29$26.03 P/E 27.6$18.49$19.87$21.53$20.42$23.46$26.22 ScenarioEst. Return 2007 Worst-22.20% Expected.46% High9.62% ScenarioEst. Return 2008 Worst-14.10% Expected18.58% High33.50% SOURCE: moneycentral.com

Recommendation ► This is a stock that you want to hold for the long-term. ► The stock has done fairly well. No negative news at this point. ► The intrinsic value suggests we have exceeded our best estimate, but on the other hand, the relative value and the analysts’ opinions suggest there is more money to be made. Therefore, we should continue to hold this stock.