WHERE INFORMATION LIVES - KU Leuvencosts to soar.Or it could transform the accuracy and speed of diag-nostic medicine by putting a patient’s entire medical history at a physician’s

WHERE INFORMATIONLIVES

EMCCORPORATIONANNUALREPORT 2000

INFORMATION

IS AT THE

CENTER OF

BUSINESS.

AND ONLY ONE

BUSINESS IS AT

THE CENTER OF

INFORMATION.

lett

er

T O O U R S T O C K H O L D E R S Today the world will create the equivalent ofeight million hours of motion picture images.Tomorrow, the equiv-alent of million meters of shelved books.The next day, another million gigabytes of new information will arrive.By next year, thisdaily volume will double and the following year it will quadruple,withno end in sight.

This “Big Bang”of new content,nearly all of it “born” in dig-ital form,will overwhelm some organizations but create huge oppor-tunity for others.For example, it could cause a hospital’s administrativecosts to soar. Or it could transform the accuracy and speed of diag-nostic medicine by putting a patient’s entire medical history at aphysician’s fingertips within seconds.This explosion of content couldinundate a bank that suddenly finds its volume of information too largeto manage yet too valuable to ignore.Or it could be a powerful toolfor farmers, helping them eliminate guesswork, improve yields, andboost profits.The key will be the ability to channel its energy.

The new century will bring a new era of building businessesout of information.EMC is taking responsibility for helping companies

M I K E R U E T T G E R S

E x e c u t i v eC h a i r m a n o f

t h e B o a r d

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P r e s i d e n t a n dC h i e f E x e c u t i v e

O f f i c e r

not simply prepare for the Content Big Bang, but channel it forgreater productivity and decisive competitive advantage. We’vealready invested nearly six billion dollars and more than a decade ofR&D to build the technological foundation to scale in tandem withthe Content Big Bang.Over the next five years,we intend to dramat-ically increase this investment to help companies raise their ROI — theirReturn on Information — to new heights.

As this report illustrates, this foresight, investment, and exe-cution are paying off for EMC, our customers, and our stockholders.

A T T H E C E N T E R O F B U S I N E S S By every measure, was an extra-ordinary year for EMC. Our total consolidated revenues grew

percent to a record $. billion. Our information storage revenues(which made up percent of the total) grew at an accelerating paceeach quarter: percent in the first quarter, percent in the second, percent in the third, and percent in the fourth — our high-est quarterly storage growth rate in nearly six years. Internationally,EMC’s information storage revenues grew even faster, reaching

percent year-to-year growth in the fourth quarter.

Overall, EMC is now growing faster than we did when wewere half our current size. We exited the year on a $ billiondollar annual run rate. And we’re marching aggressively toward our annual revenue goal of $ billion.

Net income for was $. billion, up percent over (excluding a one-time charge for the acquisition of Data Generalin ). EMC’s percent return on sales is among the highestacross the IT industry. On a diluted basis, our earnings per share were$. for the year, compared with $. for , adjusted for theJune , stock split and excluding the one-time charge in .

Customers are investing in EMC solutions in record numbers.The new information storage products we introduced in early

accounted for half the year’s total storage product revenues. EMC’smomentum is also evident in our growing market share. Accordingto independent market research firm International Data Corporation,in , EMC was the number-one supplier in the information stor-age market, gaining significantly more revenue market share than anyother supplier.

Over the past decade, EMC’s sales have soared.This perfor-mance has its roots in a culture of consistent execution and bestpractices.Our product generation and development model is so strongthat the bigger we’ve gotten, the faster we’ve become.We focus ourstrategic thinking with a six-quarter rolling planning process that helpsus to anticipate and react quickly to changes in our environment.Wework to minimize the impact of economic shifts by operating a busi-ness that is balanced by technology platforms, distribution channels,product lines, market segments, geographic regions, and customers.

EMC’s best practices also extend to succession planning. InJanuary , our Board of Directors promoted Mike Ruettgers toExecutive Chairman and JoeTucci to President and CEO. As ExecutiveChairman,Mike remains fully engaged with EMC and is focusing evenmore of his attention on strategic business and technology directions.Joe continues to have overall responsibility for EMC’s day-to-dayoperations and takes a seat on the Board. Our founder, Dick Egan,remains active as Founder and Chairman Emeritus.

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A C C E L E R A T I N G I N F O R M A T I O N

S T O R A G E R E V E N U E

Year-over-year percent increase

50%47%

43%

34%

A T T H E C E N T E R O F T H E C U S T O M E R ’ S B U S I N E S S EMC promises cus-tomers that no matter how fast their marketplaces change,what newtechnologies emerge,or how much information they need to handle,we will be the world’s best caretaker and enabler of all their informa-tion.We fulfill this promise throughThe EMC Offering,our phrase forevery benefit customers experience when they do business with EMC.

The EMC Offering begins with the world’s leading informa-tion storage systems, software,networks,and services. It continues withaccess to the expertise of some , information storage engineers,, customer service professionals and professional services con-sultants, and , sales personnel and systems engineers — all of themspecialists in information storage.Through The EMC Offering, cus-tomers reap the benefits of the billions of dollars we’ve invested inR&D, our Centers of Excellence, our E-Lab interoperability testingfacility, and scores of industry partnerships. Not to mention financ-ing alternatives, technical blueprints, education, and training.

Ultimately, it’s customers who decide whether a company isat the center of their business. In October, InformationWeek surveyed

IT professionals responsible for purchasing storage products andasked them to rank the world’s storage suppliers on the value they offer.EMC was ranked number one in product innovation,product reliability,after-sale service,service-level guarantees,and interoperability standards.

EMC also was deemed overall customer satisfaction leader bya wide margin. As Research Director Carl Howe of Forrester Researchtold Forbes magazine,“EMC has the highest ratings we’ve ever seen— in any customer survey, for any company, ever.”

A T T H E C E N T E R O F I N F O R M A T I O N T E C H N O L O G Y Successful organiza-tions now realize that where they keep their information is as impor-tant as where they keep their money. The “where” determines howwell information can be used. Less and less of the world’s informationsits inside computers, while more and more now lives inside intelli-gent information storage systems.

As a result, information storage has emerged as the moststrategic information technology.The capacity to manage ever-expanding amounts of information has become as essential as heat or

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A C C E L E R A T I N G I N T E R N A T I O N A L

I N F O R M A T I O N S T O R A G E R E V E N U E

Year-over-year percent increase

67%

59%53%

36%

electricity. Customers may postpone application and PC upgrades,but they can’t easily control the onrushing wave of new information,or the need to store, move, manage, and access it.

Independent market data confirm this trend.According toGartner Group,storage industry hardware revenues will probably grow percent a year through ,nearly four times as fast as servers andnearly three times as fast as network equipment. By the end of ,total spending on information storage will overtake spending on servers.

Information has value only if it’s accessible instantly, aroundthe clock. So EMC constantly devises better, simpler, more cost-effective ways to safeguard,preserve,move,copy,view,analyze,and man-age information. In April ,we introduced a completely new lineof our Symmetrix Enterprise Storage systems (our fifth generation)as well as new mid-tier CLARiiON systems and software built on anine-year foundation of high availability and reliability. These net-worked information storage systems remove constraints on the speedand scale at which information can be gathered and leveraged.

In December, we extended the reach of our informationstorage technology from the data center to the network’s edge with

more new networked information storage systems and software: EMCCelerra with HighRoad software and EMC CLARiiON IP sys-tems. In January ,we introduced EMC CLARiiON FC, thefifth generation of our CLARiiON networked storage system.TheCLARiiON systems are code-named Chameleon becausethey are the first systems to handle either network attachedstorage (NAS) or storage area network (SAN) environments.EMC started the trend toward the networking of storage, andshipped more than $ billion in networked information storageproducts during .

In information storage software, EMC has a multi-year leadover our competitors. Our software revenues grew percent to$. billion during ,making EMC one of the largest applicationsoftware companies in the world. To extend this position,we intendto invest $ million in software development in alone. And wewill apply the combined engineering and product capital of the fivesoftware companies we acquired during : Softworks,Terascape,Avalon, Digital Bitcasting, and CrosStor Software.

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(in mi l l i ons )

N E T W O R K E DI N F O R M A T I O N

S T O R A G E R E V E N U E

Total 2000: $2.1B 372 percent year to year

$770

$567

$458

$323

A T T H E C E N T E R O F I N F O R M A T I O N I N F R A S T R U C T U R E EMC invented trueopen storage before our competitors even knew there would be a mar-ket for it. EMC invests heavily in interoperability so our customers don’thave to.Our information storage systems are compatible with nearlyevery major information technology our customers use. In fact, EMCsystems now interoperate with more than server models,

operating systems, and more than networking elements.EMC’s open infrastructure allows any company in the world

to engineer products that will seamlessly interface with EMC systems.This openness saves customers the burden of having to figure out whatworks with what.As a result, EMC’s E-Infostructure DevelopersProgram™ has become a magnet for third-party software developers,offering them the same software interfaces our own engineers use,andenabling partnering technology companies to pair with EMC’s cus-tomers.To date,more than partners have produced new applicationsthat work seamlessly with EMC information storage systems.

The same drive to create a universal information infrastruc-ture shapes our alliances with other heavyweights of the IT industry.

Our work with Nortel and Lucent, for example, blends broadbandtechnologies with EMC storage networking technology to createtomorrow’s global “information grid”— a way to make informationaround the world as instantly accessible as if it were within arm’s reach.EMC information plants — giant, self-managing information storageinfrastructures that will speed large amounts of information safelyover long distances — will power this grid.

In ,EMC,Cisco, and Oracle created an e-business tech-nology initiative called ECOstructure,which has produced technicalblueprints for designing and operating e-business infrastructures thatare secure and remain in constant operation.Each week,hundreds ofcustomers download these blueprints from our Web site.

A T T H E C E N T E R O F T H E I N F O R M A T I O N S O C I E T Y EMC’s global marketopportunity was estimated to be about $ billion in .Yetwe achieved our leading market position with only about a

percent revenue share. In we expect our market opportunityto exceed $ billion.

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Joseph M. TucciPresident and Chief Executive Officer

Michael C. RuettgersExecutive Chairman of the Board

This means EMC has tremendous headroom in a burgeoningmarket,because information is the solar energy of life. It’s both indis-pensable and inexhaustible. It’s the glue holding organizations togetherand the raw material for creating new products, services,processes,busi-ness models, and markets.Without shared information, there could beno commerce;no social organization;no education,entertainment,orculture, and no democracy.

As the digitization of life continues apace, EMC is touchingmore and more of the information that touches people. Informationis at the center of business.And only one business is at the center ofinformation. EMC — where information lives.

In January , EMC founder Dick Egan “took a step back,” as heput it, to become Founder and Chairman Emeritus of EMC’s Boardof Directors.

Dick’s history and achievements tell part of the story. Hisworking-class, strong-family-ties roots in Boston,Massachusetts.Hiswork on the Apollo moon-landing guidance system, and hiscofounding of Cambridge Memories. His work with computerindustry legends Gordon Moore,Robert Noyce, and Andy Grove atIntel.His return to Massachusetts in to start EMC — and in theprocess, an industry.

But who he is tells even more.The consummate engineer.Thematchless motivator and mentor. The unequaled judge of talent.Thepersonal responses to every note from an employee, signed in red inkand including his telephone number.The raw energy.The tireless devo-tion to customers. The passionate insistence on being the best. Andthe unshakable conviction that roadblocks are just thrills in disguise.

Here’s to you, Dick: the “E” in EMC.

T O D I C K E G A N

D i c k E g a n F o u n d e r a n d

C h a i r m a n E m e r i t u s E M C C o r p o r a t i o n

Symmetrix® 8000,newest member ofEMC’s family ofenterprise informationstorage systems:Enginuity™ OperatingEnvironment.

E-Infostructure™

Developers Program.Gives third-partysoftware developersthe interfaces theyneed to develop new applications for EMC systems.

Significant enhance-ments to SRDF™,ControlCenter,™TimeFinder,™ andInfoMover™ software;new CopyCross™ software.

CLARiiON® FC4500,bringing CLARiiON intoEMC’s Enterprise StorageNetwork family.Multi-platform host support,switched Fibre Channelnetwork connectivity.

Enterprise StorageNetwork enhancements,CLARiiON IP4700/FC4700 (Chameleon),each capable of NAS orSAN connectivity.

New Access Logix™

and SnapView™/IP software; significantenhancements toNavisphere® andApplication TransparentFailover™ software.

EMC ControlCentersoftware bringingSymmetrix andCLARiiON systemsunder a single management view.

SAN/NAS integration,revolutionary HighRoad™

file-sharing software that automatically routes data to NAS orSAN networks withoutserver intervention.

Celerra™ SE, Celerrafile server andSymmetrix EnterpriseStorage combined in asingle enclosure.

A T T H E C E N T E R O FI N F O R M A T I O N

Product. Service. Distribution. At the core of EMC’s global leadershipin information storage are continuousinvestments in these three criticalareas: advanced products, the broad-est complement of services in theindustry, and a full range of direct and indirect distribution channels.Together with EMC’s Centers ofExcellence, E-Lab interoperability, and EMC Proven Program, these ele-ments compose the EMC offering.Here are some of the major compo-nents, including enhancements madein 2000 and early 2001.

P R O D U C T

EMC Global Services, providing services throughinternal competencies aswell as regional andglobal services partneralliances. EMC’s GlobalServices team includesmore than 6,500 profes-sionals in 47 countries.

EMC ProfessionalServices. Consultationand implementation in storage infra-structure solutions that deliver value over theentire life of the customer relationship.

Global TechnicalTraining. 10 centers inthe US, Europe, Asia,and Latin America scheduled for first-half 2001; new EMCProven™ ProfessionalCertification program.

EMC Customer Service.Undisputed industryleader in customer satisfaction. 24-hour-a-day, 365-day-a-yearproactive service for both hardware and soft-ware. 99 percent cus-tomer retention rate.

S E R V I C E

EMC Direct Sales, 7,500 people around the globe focused exclusively on information storage.

ECOstructure(EMC/Cisco/Oracle)Initiative. Three-com-pany initiative providingpre-tested blueprints for successful e-businessarchitectures.

Global alliance withMicrosoft. Allianceswith Nortel, Lucentand Cisco to definenext-generation opticalnetworks.

Expanded resellerchannels for bothSymmetrix andCLARiiON systems.

xSPerience™ ProviderProgram, helping service provider part-ners succeed in theirmarketplace.

Reseller/OEM (Original EquipmentManufacturer) relationships withsuch industry leadersas Unisys, FujitsuSiemens and NEC.

D I S T R I B U T I O N

WHERE INFORMATIONLIVES

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B A N D W I D T H Capacity of any medium,from copper wire to optical fiberto microwaves, to carry signals.The million-fold increase in bandwidthexpected over the next few years will dramatically increase both thegrowth of information and people’s access to it. See figure .

C O N T E N T B I G B A N G Explosion of digitized information resulting fromthe “digital wake” of our daily lives, coupled with advances in infor-mation storage technologies and in optical networking. See figure .

C O N V E R G E N C E Merging of communications and computing tech-nologies,making possible such things as phone calls from your laptop.One of the factors fueling mega-mergers among global media giants.See figure .

D I G I T I Z E D I N F O R M A T I O N Any information (text,music,video,etc.) rep-resented in numerical form, the only language computers understand.More than percent of all new information is now created in digitalform. See figure .

E - I N F O S T R U C T U R E The most comprehensive information infrastructurein the world, available only from EMC. B A N D W I D T H Capacity of anymedium, from copper wire to optical fiber

A D I G I T A L G L O S S A R Y A Short Guide to Today’s Information Terminology

figure 1: Bandwidth figure 2: Content Big Bang

figure 3: Convergence figure 4: Digitized Information

E M C O F F E R I N G The full complement of technologies, services,alliances,expertise, and capabilities EMC brings to bear to ensure customers’success.

F I B E R O P T I C S Technology for moving enormous quantities of data vialight waves down flexible glass wires.The superhighway of the infor-mation age, capable of moving entire libraries in a flash. See figure .

I N T E R A C T I V E Requiring active user participation, as in video games,some Internet sites, and some broadcast media. See figure .

I N T E R O P E R A B I L I T Y Ability of one company’s hardware or softwareto work with other companies’ products. As with bandwidth,moreis better. See figure .

I T Information technology, the engine powering the global economy.

N A S Network-Attached Storage,methodology that makes it possiblefor many users, usually on a Local Area Network, to share informa-tion contained in files. See SAN.

R O I Return on Information, today’s leading determinant of businesssuccess. See figure .

figure 5: Fiber Optics figure 6: Interactive

figure 7: Interoperability figure 8: Return on Information

R I C H C O N T E N T Digitized information other than text: photographs,music files, video,digital movies. Creates unprecedented demand forinformation storage capacity. See figure .

S A N Storage Area Network,a network of information storage devicesand the computers that access them,designed to give users access towhatever information they need, whenever they need it. Providesspeed, scalability. See figure .

S A N v s N A S Raging debate rendered obsolete by EMC in withthe introduction of Celerra with HighRoad software, which deliv-ers the benefits of both.EMC believes all information storage shouldbe networked.

S T R E A M I N G M E D I A Technology for compressing and transmittingsound or graphics in a continuous stream, so users can watch or lis-ten in real time without having to download. Comprises about

percent of Internet traffic today;expected to increase dramatically withspread of high-speed Net access and migration of traditional mediato digital formats. See figure .

U N I V E R S A L D A T A T O N E EMC’s vision of anywhere, anytime access toinformation via a worldwide information storage infrastructure.Willbe analogous to telephone system’s universal dial tone.

W I R E L E S S Electronic communication using radio or light waves ratherthan hard wiring between devices. Proliferation of wireless devicesgreatly accelerates demand for intelligent information storage. Seefigure .

x S P Internet-Age outsourcer. Service provider offering Internet access(ISP), software applications (ASP), storage (SSP), or other services,with technology residing at centralized data centers and delivered tosubscribers over a network.

figure 9: Rich Content figure 10: SAN

figure 11: Streaming Media figure 12: Wireless

In , EMC sponsored a study by the School of InformationManagement Systems (SIMS) at the University of California,Berkeley,to determine how much information actually exists in the world, andhow much new information is being created every day.

Among the study’s findings:— The world produced about exabytes (see chart at right) of new

information in , the equivalent of about novel-sized books,or two floppy disks, for every man, woman, and child on earth.

— More new information will be created over the next two years thanhas been created over the entire history of mankind.

— The amount of new information being created is doubling everyyear, with no end in sight.

— Print comprises only . percent of the total.— More information by far is created by individuals than businesses,

a trend researchers call the “democratization” of information.— Already more than billion photographs are taken every year,

which would require million times more digital informationstorage than the same number of words.

H O W M U C H I N F O R M A T I O N ? The amount of new information being created is doubling every year, with noend in sight.

KILOBYTE

MEGABYTE

GIGABYTE

TERABYTE

PETABYTE

EXABYTE

ZETTABYTE

YOTTABYTE

(1,000 bytes) a very short story

(1,000,000 bytes) a small novel

(1 billion bytes) Beethoven’s 5th Symphony

(1,000 gigabytes) all the X-rays in a large hospital

(1,000 terabytes) half the contents of all US academic research libraries

(1,000 petabytes) 5 exabytes — all the words people have ever spoken

(1,000 exabytes) as much information as there are grains of sand on all the world’s beaches.

(1,000 zettabytes) as much information as there are atoms in 7,000 human bodies.

Courtesy of Roy Williams, Center for Advanced Computing Research at California Institute of Technology.

T H E D E M O C R A T I Z A T I O N O F I N F O R M A T I O N

Traveler Beth Knutsen (“fogcitygirl”)took a year off from her job as a market-ing director to travel the AmericanNorthwest, using her personal Web siteas a virtual diary for her pictures, music,and observations.

One surprise in the Berkeley “How Much Information?” study wasthat it’s not giant corporations that are responsible for most of the new information being created today; it’s individuals.A whopping

percent of all new information is created by individuals, most of itstored on individual PC hard drives.

But an increasing number of individuals are choosing anotheroption for the content they create:posting and sharing it on personalInternet sites.

Personal Web sites store and make available songwriters’MP

files, travelers’ journals,photographers’portfolios,and hundreds of otherunique collections people want to share.

Reuben Costa Filho, a Brazilian surgeon,uses a personalWebsite to share photos of his tracheostomy surgeries with other physi-cians. Beth Knutsen uses hers to share her travel diary with friends.

In a few years, a single household with a camcorder, digitalcamera, VCR, DVD player, and personal video recorder could createa terabyte of data over the course of the year — unlikely to be entrustedto a PC hard drive.

“TRAVEL HAS A WAY OFSTRETCHINGTIME. YOUREGISTEREACH MOMENTAS IT GOESBY.” BETHKNUTSEN, AKAFOGCITYGIRL

Thanks partly to its strategic location and partly to government policy,Singapore has become one of the world’s most vibrant financial centers.

Since the s, the Monetary Authority of Singapore hasworked diligently to develop a friendly regulatory environment, aneducated workforce, an excellent telecommunications infrastructure,and openness to foreign investment, thereby attracting hundreds offoreign financial institutions. Singapore has also actively encouragedregional banks to consolidate in order to have greater influence on theglobal financial scene.

The recent merger between Development Bank of Singapore(DBS) and POSB Bank has made DBS the largest bank in SoutheastAsia and one of the top banks in the world,with offices from Beijingto Los Angeles.

EMC played a key role in the bank consolidation, providingthe technology infrastructure that made it possible to smoothly con-solidate four data centers into two and to provide a robust platformfor accelerated growth.DBS is taking leadership in the launch of newservices, including wireless banking and online investing.

Through its state-of-the-art telecommunications networkand EMC’s extended-distance business continuance and data mobilitysoftware,Symmetrix Remote Data Facility, DBS Hong Kong is expectedto play a strategic role in the bank’s regional expansion.

S I N G A P O R E : A W I R E D F I N A N C I A L H U B :

Singapore’s DBS Bank is one of the keys to the island nation’s financial leadership

ONE OF ASIA’S KEY BANKS,SINGAPORE’SDBS OFFERSWIRELESSBANKING.

In , following the filming of the Academy Award-winning“Schindler’s List,” director Steven Spielberg founded Survivors ofthe Shoah Visual History Foundation to preserve the testimony of sur-vivors and witnesses of the Holocaust on videotape.

Since then, the Foundation has videotaped the testimonies ofmore than , survivors and witnesses in countries and in

languages, archiving them on EMC Symmetrix information storagesystems.The archive enables students and researchers to access morethan , hours of material related to the Holocaust.The video-tapes are also encoded in MPEG format so they can be streamed world-wide via secure fiber-optic networks by EMC Celerra Media Servers.

“Our hope,” says Spielberg,“is that these testimonies will bea resource so enduring that,years from now,people around the worldwill learn directly from survivors and witnesses about the atrocities ofthe Holocaust — what it means to survive,and how our very human-ity depends on the practice of tolerance and mutual respect.”

S U R V I V O R S O F T H E S H O A HB E A R I N G W I T N E S S T O H I S T O R Y

One Shoah witness is Silvia, who, onthe day Germany took control of Austriain 1938, was a 19-year-old actress.Silvia left Vienna with a traveling theatertroupe. In 1940, Germany invaded theNetherlands and Silvia found herselftrapped in an occupied country. In1942, she joined a resistance group.When the operation was uncovered in1942, she went into hiding. Attemptingto escape to Switzerland, Silvia wascaptured and sent to Auschwitz andthen to Ravens-brueck. In early 1945,Silvia was included in a Red Cross evacuation that was bombed on its wayto Sweden. She was one of only 120women to survive the journey.

“OUR VERYHUMANITYDEPENDS ONTHE PRACTICE OF TOLERANCEAND MUTUALRESPECT.”STEVENSPIELBERG

All digital information is stored and transmitted in the ones and zeroscomputers understand. But when ones and zeros represent morethan words, they become rich content.Rich content includes every-thing from medical images to product designs. Not only does itrequire more storage space, it takes special handling to transmitsecurely in clear, continuous streams.

Movies are the richest of rich content.Though most moviesare still shot, shipped, and shown on mm film, a few, like GeorgeLucas’s “Star Wars:Episode II,” are now being created in digital form.

But as rich content technology races ahead, its impact will beas significant in banking,heavy industry, government, and healthcareas in entertainment.EMC’s Content and Information Center Marketsinitiative develops and delivers innovative solutions and services forrich media content.

By ,more than half the world’s data will be in rich con-tent formats. How it will be used can only be imagined. But all of itwill have to be stored, managed, and protected.

W H A T I S R I C H C O N T E N T ? This NASA image of a shrinkingPatagonian glacier shows an area 36 x 30 km as it appeared in May2000. Vegetation appears red. The glacier is riddled with deepcrevasses, and the series of parallel valleys along the right side of the image were likely cut by arms of theglacier that have since receded.

AS MOREINFORMATIONIS DIGITIZED TO BECOMERICH CONTENT,THE IMPACTWILL BE FELTVIRTUALLYEVERYWHERE.

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GE MEDICALSYSTEMS

Digital images like CT scans and MRIs are among the most powerfultools in the physician’s diagnostic arsenal. So powerful that last yearthe , hospitals and , diagnostic imaging centers in theUnited States each produced about a terabyte’s worth of data.

But managing this information and efficiently getting theseimages to the doctors who order them present a unique set of chal-lenges. A year ago, GE Medical Systems (GEMS) formed an applica-tion service provider (ASP) business to address those challenges.

“The largest medical centers typically have their own digitalimaging systems,”says GEMS IT General Manager Milton Silva-Craig.“So they’ve already implemented technologies like PACS (picturearchiving and communications systems).We wanted to make PACSaffordable for smaller hospitals — as well as to give the giants a betterway to archive older images.”

PACS offers advantages at every step in the process, from ini-tial capture to patient treatment.

M I L T O N , S I L V A - C R A I G ,

G e n e r a l , M a n a g e r ,

G E M e d i c a l ,S y s t e m s I T ,

“With imaging technologies, clinicianscan construct 3-D images, rotate orzoom in to get a better view, and com-pare current and past medical images— all in seconds.”

“Once doctors see the benefits of this technology, you can't get it awayfrom them.”

“With PACS technologies,” says Silva-Craig,“clinicians canconstruct -D images, rotate or zoom in to get a better view,and com-pare current and past medical images — all in seconds.With PACS,digital images don’t get lost, like percent of all analog films do.They’re considerably more secure.And the doctor who ordered themsees them within hours, not days.”

PACS technology makes it possible to “call in”specialized radi-ologists over the Internet to help with difficult diagnoses, a fast-growing new field called tele-radiology.

Silva-Craig says GE Medical Systems chose EMC for its ASPinformation infrastructure “because we need absolute security anduptime. EMC was able to help us grow the business quickly. In fact,we went from design to implementation in about three months.”

GEMS believes Internet delivery of clinical applications suchas PACS will explode over the next few years because it is so efficient.“Once doctors see the benefits of this technology,” says Silva-Craig,“you can’t get it away from them.”

LEVEL 3COMMUNICATIONS

M I K E J O N E S ,

C I O ,L e v e l 3 ,

C o m m u n i c a t i o n s ,

“We’re bringing the power of siliconeconomics to the Internet and communications industries.”

“Our upgradeable infrastructure isdesigned to scale as the amount ofinformation we’re capturing and ana-lyzing increases. EMC plays a criticalrole in maintaining the integrity ofinformation sent over our network.”

Level Communications is at the forefront of a telecommunicationsshift as dramatic as the leap from the telegraph to the telephone a cen-tury ago. But this time, the leap is from telephone lines designed tocarry the human voice to optical Internet Protocol-based networksdesigned to carry voice, data, and video simultaneously.

“Level has constructed what we believe is the world’s onlymultiple-conduit, continuously upgradeable, fiber-optic network,”says CIO Mike Jones.“We’re bringing the power of silicon economicsto the Internet and communications industries.And EMC solutionsare a crucial part of our ability to do that.”

Level ’s global broadband network comprises nearly ,

miles of optical fiber linking metropolitan networks in the UnitedStates and Europe, a transatlantic fiber-optic cable, and data cen-ters serving cities in the United States, Europe, and Asia.

Level believes cheap and abundant bandwidth will drivedemand for new Internet-related applications which will fundamen-tally change the way we work and live.

“Since the beginning,” says Jones,“we’ve focused on enablingcompanies to send more information faster,more cost-effectively, andover greater distances than ever before.To do that,we need informa-tion systems that can help us achieve our pricing, performance, andprovisioning objectives.

“Our upgradeable infrastructure is designed to scale as theamount of information we’re capturing and analyzing increases,” saysJones.“EMC plays a critical role in maintaining the integrity of infor-mation sent over our network.”

CLEARSTREAMINTERNATIONAL

Y V E S ,B A G U E T ,

M a n a g i n g ,D i r e c t o r ,

T e c h n o l o g y ,C l e a r s t r e a m ,

I n t e r n a t i o n a l ,

“The closer we come to clearing securi-ties transactions in a continuous way,the less cost and less risk involved,and the faster we are ready for ‘T Plus 0’: processing trades on the daythey’re made.”

“For us, it is absolutely essential to havepartners like EMC — partners whounderstand our business, are flexibleenough to respond when our businesschanges, and will be there for us as we grow.”

When brokers buy and sell securities, time is literally money. Everyminute required to clear a trade can cost millions.When trades crossborders, the stakes are even higher.

Luxembourg-based Clearstream International,Europe’s largestsecurities clearing house,was formed last year to address those chal-lenges in the new Euro marketplace. Owned jointly by Luxembourg’sCedel and Deutsche Boerse, the German stock exchange,ClearstreamInternational expects to handle million transactions this year.By, daily transaction volume could reach million.

“Our strategy is all about minimizing market risk, improvingmarket efficiency and reducing cost,” says Yves Baguet, ManagingDirector Technology.“The closer we come to clearing securitiestransactions in a continuous way, the less cost and less risk involved,and the faster we are ready for the industry goal of ‘T Plus 0’: pro-cessing trades on the day they’re made.”

Clearstream’s business rests on a new IT platform calledCreation,which is designed to handle clearing and settlement of bondsand equities no matter how large trading volume becomes. At the cen-ter of the platform is an EMC E-Infostructure.

“Without information technology, our business could notexist,” says Baguet.“Our IT infrastructure is what has enabled us tointegrate Deutsche Boerse’s clearing business with our internationalbusiness to develop new services and to offer lower prices,while main-taining the quality our customers expect.

“For us, it is absolutely essential to have partners like EMC —partners who understand our business, are flexible enough to respondwhen our business changes, and will be there for us as we grow.”

FINANCIALTIMES

For many newspapers, the dawn of the Internet age posed a seriousthreat. Financial Times, however, saw only opportunity.

In a few short years, the venerable newspaper has transformeditself from the UK’s leading business daily into an international mediapowerhouse.On the strength of a world-class EMC E-Infostructure,Financial Times is now embarking on the next phase of its globalexpansion plan.

“We had our vision, and it was all based on being able to cap-ture, store, and manipulate information in any place or format any-where in the world,” says IT Director Alan Murphy,who sits on theFinancial Times board of directors.“Once we can do that, we canmove at the speed of light.That’s the only way to stay ahead of ourcustomers and the competition.”

With more than systems in the paper’s editorial productionprocess alone, FT has a geographically and operationally disparate ITsystem.By using EMC information storage hardware and software and

A L A N ,M U R P H Y ,

I T D i r e c t o r ,F i n a n c i a l ,

T i m e s ,

“We have a circulation of 500,000 now,and we are the only major internationalbusiness newspaper gaining readers.”

“We are in the business of creating con-tent and content is expensive to create.We need to maximize the use of ourcontent in every way possible. With our new architecture, EMC can help usdo that.”

Sun servers with Oracle databases,Murphy says, they can now createa virtual pool of information.

“The data pool will appear completely seamless,” he says.“Thatwill cut production time and allow us to localize editions around theworld,creating a better vehicle for advertisers to reach focused groupsof readers.We have a circulation of , now,and we are the onlymajor international business newspaper gaining readers.EMC can playa big part of that vision.”

Beyond the distinctive salmon-colored newspaper,the FinancialTimes Group is now moving onto the Internet with FT.com.Movingstories, interviews,photos,and other information across different kindsof media maximizes content to increase revenue, Murphy says.

“We are in the business of creating content.Since creating con-tent is expensive,we need to maximize its use in every way possible.With our new architecture, EMC can help us do that.”

POSCO

Korea’s Pohang Iron & Steel Co. (Posco) was founded in as astate-owned monopoly.Over the years, the company became a cor-nerstone of Korean industry and eventually the largest steel producerin the world, supplying high-quality,hot- and cold-rolled steel to someof the giants of the automotive and ship-building industries.

But by the late s, globalization, new competition, andthe information revolution had converged to change the rules oftheir marketplace.

“Suddenly, we had to develop ways to compete in a brandnew environment,” says CIO Ryoo, Kyeong-Ryul.“That meantmaking significant changes to the way we had been doing business.”

One of Posco’s first steps was to replace its legacy IT systemswith an EMC E-Infostructure that would provide the foundation forprocess innovation.

R Y O O ,K Y E O N G - R Y U L ,

C I O ,

P O S C O ,

“Suddenly, we had to develop ways tocompete in a brand new environment.That meant making significantchanges to the way we had been doing business.”

“Our EMC systems’ reliability, availabil-ity, and scalability are essential to handle the explosive growth potentialwe face.”

Posco leveraged its new infrastructure to overhaul its supply chain,linking more than facilities via a fiber-optic network so that everysite has access to the same information.The company is also usingEMC systems to speed up implementation of a new Oracle ERP appli-cation, which is expected to yield both tighter control of manufac-turing processes and dramatic cost savings.When its new ERP systemis complete later this year, Posco will link the ERP system to its Website and sell steel by Internet auction.

“In the past we enjoyed a competitive advantage conferredby our government,” says Ryoo.“Now we have to make ourselves ourcustomers’ best choice on our own, earning their loyalty with highquality, low costs, and responsive service.Our EMC systems’ reliabil-ity, availability, and scalability are essential to meeting that goal, withthe explosive growth potential we face.”

NEC BIGLOBE

Hundred-year-old NEC is one of the lynchpins of the Japanese econ-omy and a global leader in semiconductors,networks,and computers.

“In the Internet age,” says NEC President Koji Nishigaki,“ourreal product is information.That’s why we chose an EMC infor-mation infrastructure. If we are to compete with developing coun-tries and continue to expand our business, we must shift NEC’sfocus toward information.”

NEC entered the services business years ago when it starteda PC value-added network service.Six years ago,that evolved to Internetservices,and about four years ago,NEC branded its services BIGLOBE.

BIGLOBE is already one of Japan’s largest ISPs. Its . millionsubscribers range from individual users to major corporations likeDaiwa Securities, dream.com (part of -Eleven retail stores), andTsutaya video rental stores.By September of ,BIGLOBE expects

“Today, our real product is information.That’s why we chose an EMC informa-tion infrastructure.”

K O J I ,

N I S H I G A K I ,

P r e s i d e n t ,N E C ,

“We’re going beyond merely being an ISP. We’re helping our customerschange their business models.”

to have million customers, putting even heavier demands on itsinformation infrastructure.

BIGLOBE Sales Director Saburo Takizawa says,“We’re goingbeyond merely being an ISP. We’re helping our customers change theirbusiness models.For example,here in Japan,BIGLOBE’s services haveenabled dream.com to sell videos and music online.Customers canpay for the items through the Internet and then pick them up at theirlocal -Eleven store.”

NEC President Nishigaki says,“BIGLOBE’s fundamental pur-pose is to make our clients’dreams for leveraging the Internet a reality.The amount of information being created today seems limitless.Without EMC’s hardware, software,and support we could not do whatwe are doing.”

S A B U R O ,

T A K I Z A W A ,

S a l e s , D i r e c t o r ,B I G L O B E ,

GRUPO PÃODE AÇÚCAR

For immigrants to Brazil,Rio de Janeiro’s Pão de Açúcar (“sugar loaf ”)is as symbolic as New York’s Statue of Liberty. So when Portuguese-born Valentim dos Santos Diniz opened a small Sao Paulo candy shopin , he named it for the icon of his adopted country.

Today Grupo Pão de Açúcar (pronounced pan de soó ker) isthe largest Brazilian retailer and one of the fastest-growing companiesin Latin America.With more than stores,Grupo Pão de Açúcardoes business through Eletro electronics stores, Pão de Açúcar andBarateiro supermarkets, EXTRA hypermarkets, and Internet portalAmelia.com.br.The company recently formed an alliance with CasinoGroup of France.

“In retailing, success requires anticipating trends and stayingwell ahead of customers’ expectations,” says Administrative DirectorSilvio Laban.

“That’s why some of our stores offer live music, Internetaccess, and valet parking. In Japanese and Jewish neighborhoods,weoffer ethnic foods in addition to Brazilian specialties like feijoada. Andif you shop on Amelia.com.br, you can not only shop for groceries

S I L V I O ,L A B A N ,

A d m i n i s t r a t i v e ,D i r e c t o r ,

G r u p o P ã o d e A ç ú c a r ,

“In retailing, success is in the details,and details add up to a lot of storedinformation. We need a platform that will give us what we need no matter howfast or how large we grow, or how ourbusiness changes. EMC provides us withthat platform.”

and home appliances, but order flowers, arrange to have dry cleaningpicked up, or get advice on wine.”

If closeness to the customer is what sets Grupo Pão de Açúcarapart, its information infrastructure is what makes that closeness possi-ble.The company has a highly developed customer knowledge database,which it mines frequently to anticipate customers’needs.Grupo Pão deAçúcar also uses the Internet extensively to manage its supply chain.

Grupo Pão de Açúcar has been an EMC customer since ,and has long used EMC solutions to help increase margins, optimizebusiness processes, integrate new acquisitions, and consolidate infor-mation from all its stores. Last year, the company did a comprehen-sive survey of every IT option available and decided to migrate all itsdata to EMC: about terabytes worth.

“Success is in the details,” says Laban,“and details add up to alot of stored information.We need a reliable, flexible,and scalable infor-mation platform that will give us what we need no matter how fastor how large we grow,or how the business changes.EMC provides uswith that platform.”

E M C2 A R _ 0 0 P_7 2

FINANCIAL REVIEW

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N O T E F R O M M A N A G E M E N T

This 2000 Annual Report to stockholders contains selected financial information including Five-Year Selected Consolidated Financial Data, Condensed Consolidated Statements of Income,Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows,and Condensed Consolidated Statements of Comprehensive Income.

Complete Consolidated Financial Statements, including Notes to the Consolidated State-ments, as well as Management’s Discussion and Analysis of Financial Condition and Resultsof Operations, are presented in the Company’s 2000 Annual Report on Form 10-K.

R E P O R T O F I N D E P E N D E N T A C C O U N T A N T S

To the Stockholders and the Board of Directors of EMC Corporation. We have audited, in accordance with auditing standards generally accepted in the United

States of America, the consolidated balance sheets of EMC Corporation and its subsidiariesas of December 31, 2000 and December 31, 1999 and the related consolidated statementsof income, cash flows, stockholders’ equity, and comprehensive income for each of the threeyears in the period ended December 31, 2000 (none of which are presented herein); andin our report, included in the Company’s 2000 Annual Report on Form 10-K, we expressedan unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed consolidatedfinancial statements is fairly stated, in all material respects, in relation to the consolidatedfinancial statements from which it has been derived.

PricewaterhouseCoopers LLPBoston, MassachusettsJanuary 22, 2001

S E L E C T E D Q U A R T E R L Y F I N A N C I A L D A T A ( U N A U D I T E D )

In thousands, except per share amounts

Q1_00 Q2_00 Q3_00 Q4_00Revenues $1,822,598 $2,145,927 $2,283,005 $2,621,286Net income $ 331,987 $ 429,037 $ 458,178 $ 562,873 Net income per weighted average

share, diluted $ 0.15 $ 0.19 $ 0.20 $ 0.25


For the fiscal year ended 12_31_00 12_31_99 12_31_98 12_31_97 12_31_96

Summary of Operations:

Revenues $8,872,816 $6,715,610 $5,436,158 $4,487,851 $3,616,746

Operating income(4) 2,256,903 1,241,094 834,267 716,958 539,039

Net income(4) 1,782,075 1,010,570 653,978 587,511 420,080

Net income per weighted average share, basic(2) $ 0.82 $ 0.49 $ 0.32 $ 0.29 $ 0.22

Net income per weighted average share, diluted(2),(4) $ 0.79 $ 0.46 $ 0.30 $ 0.28 $ 0.21

Weighted average shares, basic(2) 2,164,180 2,061,101 2,030,742 2,002,032 1,878,673

Weighted average shares, diluted(2) 2,245,203 2,219,065 2,188,430 2,130,969 2,020,318

Balance Sheet Data:

Working capital $3,986,404 $2,922,481 $2,825,000 $2,581,640 $1,597,486

Total assets 10,628,342 7,173,288 5,627,020 4,627,936 3,178,101

Long-term obligations(3) 14,457 686,609 751,646 771,204 339,232

Stockholders’ equity $8,177,209 $4,951,786 $3,728,990 $2,900,941 $1,978,025

(1) The selected consolidated financial data for 1996-1998 includes the effects of the acquisition of DataGeneral on October 12, 1999, which was accounted for as a pooling-of-interests.

(2) All share and per share amounts have been restated to reflect the stock splits effective November 17, 1997,May 28, 1999 and June 2, 2000 for all periods presented.

(3) Excludes current portion of long-term debt.(4) In 1999, EMC incurred charges totaling $223,598 (pre-tax) which consists of restructuring, merger and asset

impairment charges of $208,246 included in operating expenses and other cost of sales charges of$15,352. Net income for the year ended December 31, 1999, adjusted to exclude the impact of thecharges was $1,180,468 or $0.54 per diluted share. In 1998, EMC incurred charges totaling $135,000(pre-tax) consisting of $82,400 of restructuring charges and $52,600 of other cost of sales charges relatedto asset write downs. Net income for the year ended December 31, 1998 adjusted to exclude the impact ofcharges was $788,978 or $0.37 per diluted share.

F I V E - Y E A R S E L E C T E D C O N S O L I D A T E D F I N A N C I A L D A T A ( 1 )



Summary of Operations:Revenues

Net sales $7,966,974 $5,983,009 $4,860,838 $4,022,584 $3,164,578

Services 905,842 732,601 575,320 465,267 452,168

8,872,816 6,715,610 5,436,158 4,487,851 3,616,746

Cost and expensesCost of sales 3,125,908 2,751,360 2,600,405 2,317,189 1,838,071

Cost of services 603,857 506,885 395,995 295,269 296,337

Research and development 783,166 572,517 435,344 332,078 263,625

Selling, general and administrative 2,102,982 1,435,508 1,087,747 826,357 679,674

Restructuring, merger and other charges – 208,246 82,400 – –

Operating income 2,256,903 1,241,094 834,267 716,958 539,039

Investment income 206,240 131,911 114,355 82,582 41,754

Interest expense (14,604) (33,490) (34,786) (31,302) (24,792)

Other income (expense), net (7,341) 17,650 397 1,082 424

Income before income taxes 2,441,198 1,357,165 914,233 769,320 556,425

Income tax provision 659,123 346,595 260,255 181,809 136,345

Net income $1,782,075 $1,010,570 $ 653,978 $ 587,511 $ 420,080

Net income per weighted average share, basic $ 0.82 $ 0.49 $ 0.32 $ 0.29 $ 0.22

Net income per weighted average share, diluted $ 0.79 $ 0.46 $ 0.30 $ 0.28 $ 0.21

See accompanying Notes to Condensed Consolidated Financial Statements.

F I V E - Y E A R C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E

In thousands

12_31_00 12_31_99 12_31_98 12_31_97 12_31_96

AssetsCash, cash equivalents and

short-term investments $ 2,656,952 $1,824,139 $1,817,948 $1,671,828 $ 911,702

Accounts andnotes receivable 2,114,368 1,625,438 1,292,790 1,092,695 904,289

Inventories 1,024,964 618,885 620,025 590,791 464,574

Other assets, including deferred income taxes 303,767 251,934 135,252 92,336 90,470

Total current assets 6,100,051 4,320,396 3,866,015 3,447,650 2,371,035

Long-term investments 2,088,379 1,349,599 562,360 276,776 113,500

Property, plant and equipment, net 1,510,088 1,023,179 823,160 584,622 445,129

Intangible and other assets, including notesreceivable and deferredincome taxes 929,824 480,114 375,485 318,888 248,437

Total assets $10,628,342 $7,173,288 $5,627,020 $4,627,936 $3,178,101

Liabilities and stockholders’equityCurrent liabilities $ 2,113,647 $1,397,915 $1,041,015 $ 866,010 $ 773,549

Long-term obligations and other noncurrent liabilities 337,486 823,587 857,015 860,985 426,527

Stockholders’ equity 8,177,209 4,951,786 3,728,990 2,900,941 1,978,025

Total liabilities and stockholders’ equity $10,628,342 $7,173,288 $5,627,020 $4,627,936 $3,178,101


F I V E - Y E A R C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T S

In thousands


Cash flows from operating

activities:

Net income $ 1,782,075 $ 1,010,570 $ 653,978 $ 587,511 $ 420,080

Adjustments to net income 835,163 418,022 432,182 292,133 258,601

Changes in assets and

liabilities (508,582) (56,957) (115,490) (290,592) (90,191)

Net cash provided by

operating activities 2,108,656 1,371,635 970,670 589,052 588,490

Net cash used by investing

activities (1,842,418) (1,170,938) (1,295,535) (819,704) (502,445)

Net cash provided by

financing activities 611,657 73,245 66,409 742,365 13,747

Effect of exchange rate

changes on cash (4,083) 1 (2,020) (8,039) (1,487)

Net increase (decrease) in

cash and cash equivalents 877,895 273,942 (258,456) 511,713 99,792

Cash and cash equivalents

at beginning of period 1,109,409 835,466 1,095,942 592,268 493,963

Cash and cash equivalents

at end of period $ 1,983,221 $ 1,109,409 $ 835,466 $1,095,942 $ 592,268


F I V E - Y E A R C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F C A S H F L O W

In thousands


Net income $1,782,075 $1,010,570 $653,978 $587,511 $420,080

Other comprehensive

income/(loss) 28,651 (26,643) (1,837) (15,148) 7,441

Comprehensive income $1,810,726 $ 983,927 $652,141 $572,363 $427,521


F I V E - Y E A R C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F

C O M P R E H E N S I V E I N C O M E

The accompanying condensed consolidated financial statements as of December 31, 2000,December 31, 1999, December 31, 1998, December 31, 1997, and December 31, 1996and for each of the five years in the period ended December 31, 2000 are derived from theconsolidated financial statements of EMC. The accompanying condensed consolidated finan-cial statements should be read in conjunction with the consolidated financial statements andaccompanying notes included in the EMC Annual Report on Form 10-K.

The accompanying condensed consolidated financial statements for the fiscal yearended December 31, 2000 reflect the acquisition of Data General Corporation on October 12, 1999,which was accounted for as a pooling-of-interests. All share and per share amounts have beenrestated to reflect the two-for-one stock splits effective November 17, 1997, May 28, 1999,and June 2, 2000 for all periods presented.

N O T E S T O C O N D E N S E D C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S

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G L O B A L O F F I C E S

CORPORATEHEADQUARTERS

Hopkinton, MA U.S.A.01748-9103

RESEARCH ANDDEVELOPMENT FACILITIES

Alexandria, VABellevue, WACambridge, MA Colorado Springs, CODenver, COHopkinton, MA Kawasaki, JapanLa Celle St.Cloud,FranceNeedham, MARaleigh-Durham, NCSalem, MASeattle, WASouthborough, MA South Plainfield, NJSunnyvale, CA Tel Aviv, IsraelWestborough, MA

MANUFACTURINGFACILITIES

Apex, NCBallincollig, Cork, IrelandFranklin, MAHopkinton, MA

INTERNATIONAL SALES OFFICES

ARGENTINABuenos Aires

AUSTRALIAAdelaideBrisbaneCanberra MelbourneNorth Sydney Perth

AUSTRIAVienna

BELGIUMZaventem

BRAZILRio de Janeiro São Paulo

CANADACalgary, Alberta Mississauga, OntarioOttawa, Ontario Ville St. Laurent, Quebec

DENMARKNaerum

FINLANDEspoo

FRANCELa Celle St. Cloud LilleLyon Strasbourg Toulouse

GERMANYBerlin Dresden Duesseldorf Hamburg Hannover Munich Nuernberg Schwalbach Stuttgart

HONG KONGTaikooshing

IRELANDDublin

ISRAELTel Aviv

ITALYBologna Brescia Milan Padova Rome Turin

JAPANFukuoka Kyushu Nagoya Osaka Shizuoka Tokyo

MALAYSIAKuala Lumpur

NETHERLANDSNieuwegein Rijswijk

NEW ZEALANDAuckland Wellington

NORWAYOslo

PEOPLE’S REPUBLICOF CHINABeijing Guangzhou Shanghai

PUERTO RICORio Grande Trujillo Alto

SCOTLANDEdinburgh

SINGAPORESingapore

SOUTH AFRICACape Town Durban Johannesburg Pretoria

SOUTH KOREASeoul

SPAINMadrid

SWEDENSolna

SWITZERLANDBern Geneva Schlieren

TAIWANTaipei

THAILANDBangkok

UNITED KINGDOMDerbyshire Glos Haydock Kingswood

VENEZUELACaracas

UNITED STATES SALES

AND SERVICE LOCATIONS

ALABAMABirmingham

ARKANSASConway Fayetteville Little Rock

ARIZONAPhoenix

CALIFORNIAEl Segundo Encino Irvine Pleasanton Sacramento San Diego San Francisco

COLORADOColorado Springs Englewood

CONNECTICUTRocky Hill

FLORIDAFt. LauderdaleJacksonville Maitland Miami TallahasseeTampa

GEORGIAAlpharetta Macon

IDAHOBoise

ILLINOISChicago Darien

INDIANAIndianapolis

KANSASOverland Park Witchita

LOUISIANANew Orleans

MASSACHUSETTSNewton

MARYLANDBethesda Linthicum

MICHIGANNovi

MINNESOTAEdina

MISSOURISt. Louis

MISSISSIPPIHorn Lake Olive Branch

NORTH CAROLINACharlotte Greensboro Raleigh

NEBRASKAOmaha

NEW JERSEYMurray Hill

NEVADALas Vegas Reno

NEW YORKAlbany Fayetteville Long Island New York City Pittsford

OHIOCincinnati Columbus Dayton Independence

OKLAHOMAOklahoma City Tulsa

OREGON Portland

PENNSYLVANIABlue Bell Camp Hill Erie New Freedom Pittsburgh

SOUTH CAROLINAClinton Columbia

TENNESSEEChattanooga Germantown Memphis Nashville

TEXASAustin Dallas Houston San Antonio

UTAHSalt Lake City

VIRGINIARichmond Vienna (DC)

WASHINGTONBellevue

WISCONSINGreenbay Madison Milwaukee Oshkosh

EXECUTIVE OFFICERS

Michael C. RuettgersExecutive Chairman

Joseph M. TucciPresident and ChiefExecutive Officer

Frank M. HauckExecutive VicePresidentProducts andOfferings

Michael A. RuffoloExecutive VicePresidentGlobal Sales, Servicesand Marketing

Paul T. DacierSenior Vice President General Counsel

David A. DonatelliSenior Vice President,New BusinessDevelopment

William J. Teuber, Jr.Senior Vice PresidentChief Financial Officer

SENIOR OFFICERS

David EllardSenior Vice President

Brian E. GallagherSenior Vice President

Alan G. JonesSenior Vice President

Richard P. LehaneSenior Vice President

Jack T. MollenSenior Vice President

William K. NelsonSenior Vice President

Erez OferSenior Vice President

Mark A. QuigleySenior Vice President

James B. RothnieSenior Vice President

William F. ScannellSenior Vice President

Joel SchwartzSenior Vice President

Joseph F. WaltonSenior Vice President

OFFICERS

John F. AlbaneseVice President

Mitchell BreenVice President

Jeffrey P. CasaleVice President

Denis G. CashmanVice President

Scott A. ClarkVice President

Michael J. CodyVice President

Leo V. ColborneVice President

William J. DacierVice President

James R. DonovanVice President

Rebek J. DuhaimeVice President

Michael A. FeldsteinVice President

Bryan K. FontaineVice President

Mark R. FredricksonVice President

John P. GarrahanVice President

Jeffrey A. GoldbergVice President

Kurt M. GrazewskiVice President

Kenneth T. GreshamVice President

Leonard I. HafetzVice President

John P. HanlonVice President

Thomas P. HeiserVice President

Scott HoagVice President

Ishay KedemVice President

Doron KempelVice President

Michael P. KerouacVice President

Thomas E. KnightVice President

Karen F. KupferbergVice President

Alfred LanzettaVice President

Jeffrey M. LegerVice President

Mark A. LinkVice President

Charles S.F. LoewyVice President

Joseph J. MastajVice President

Gerard McAndrewsVice President

Eamonn M. McGrathVice President

William V. Monagle, Jr.Vice President

Robin A. MonleonVice President

Erin M. MotameniVice President

E X E C U T I V E O F F I C E R S , O F F I C E R S A N D D I R E C T O R S

E M C C O R P O R A T I O N

Rona J. NewmarkVice President

Glennon L. ParedesVice President

Michael P. PariseVice President

James O. PearsonVice President

Polly C. PearsonVice President

Jon D. PeirceVice President

Veronica A. PerdisattVice President

William RafteryVice President

Bruce G. ReedVice President

Walter L. ReitzVice President

Fidelma RussoVice President

Roy T. SanfordVice President

Rafiq A. SayedVice President

Gil ShapiraVice President

Irina SimmonsVice President andTreasurer

Ronald M. SlateVice President

Gal SneVice President

Robert C. SolomonVice President

Ralph SpechtVice President

Gary H. SteinVice President

Paul SuffrediniVice President

Donald S. SwatikVice President

Percy TzelnicVice President

William B. WalshVice President

Donald R. WatsonVice President

Patrick WeberVice President

Steven WintersVice President

Rick F. WojcikVice President

William J. WolakVice President

Richard WoodmanVice President

Moshe YanaiVice President

Sarah ZohnVice President

DIRECTORS

Michael C. RuettgersExecutive Chairman

Richard J. EganFounder and ChairmanEmeritus

Joseph M. TucciPresident and ChiefExecutive Officer

Michael J. CroninPresidentChief Executive OfficerCognition Corporation

John R. Egan

W. Paul Fitzgerald

Joseph F. OliveriExecutive VicePresidentJaco Electronics, Inc.

Alfred M. Zeien

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLPBoston, MA

TRANSFER AGENT AND REGISTRAR

State Street Bank & Trust Companyc/o EquiserveP.O. Box 8200Boston, MA 02266-8200Shareholder Inquiries1.800.426.5523

FORM 10-K

EMC Corporation is mailingor making available electron-ically a copy of its AnnualReport on Form 10-K toeach stockholder. Additionalcopies can be obtained bycalling EMC’s toll-freeinvestor hotline at877.362.6973 or byaccessing www.emc.com/ir

ANNUAL MEETING

Wednesday, May 9, 200110a.m.EMC Southborough Facility4 Coslin DriveSouthborough, MA 01745

COMMON STOCK

EMC common stock istraded on the New YorkStock Exchange under thesymbol EMC. EMC hadapproximately 13,275 stockholders of record as of January 31, 2001.

This annual report contains certain forward-looking statements within the meaning of the Federalsecurities laws. EMC’s future results may differ materially from its current results and actual resultscould differ materially from those projected in the forward-looking statements as a result of certain riskfactors, including but not limited to: (i) component quality and availability; (ii) rapid technological andmarket change and the transition to new products; (iii) competitive factors, including but not limitedto pricing pressures, in the computer storage and server markets; (iv) the relative and varying rates ofproduct price and component cost declines; (v) economic trends in various geographic markets andfluctuating currency exchange rates; (vi) the ability to attract and retain highly qualified employees;(vii) the uneven pattern of quarterly sales; (viii) risks associated with strategic investments andacquisitions; (ix) the Company's ability to execute on its plans; and (x) other one-time events and otherimportant factors disclosed previously and from time to time in EMC's filings with the U.S. Securitiesand Exchange Commission.

EMC2, EMC, Symmetrix, AViiON, CLARiiON, and Navisphere are registered trademarks ofEMC Corporation. EMC Enterprise Storage, EMC Enterprise Storage Network, EMC E-InfostructureDevelopers Program, EMC Proven, Access Logix, Celerra, Connectrix, ControlCenter, CopyCross, CopyPoint,E-Infostructure, HighRoad, InfoMover, PowerPath, SnapView, SRDF, TimeFinder, Universal Data Tone,Volume Logix, xSPerience, EDM, Enginuity, FarPoint, The EMC Orb, and where information lives aretrademarks of EMC Corporation. Other trademarks are the property of their respective owners.

Special thanks to Beth Knutsen and Reuben Costa Filho who have agreed to be featuredon page 34 of this report.

Corporate HeadquartersHopkinton, Massachusetts U.S.A.01748-9103(508) 435-1000www.EMC.com

WHERE INFORMATION LIVES - KU Leuvencosts to soar.Or it could transform the accuracy and speed of diag-nostic medicine by putting a patient’s entire medical history at a physician’s

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