================================================================================

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                               --------------------

                                    FORM 10-Q

(Mark one)

[ X ]  Quarterly  Report  Pursuant  to  Section  13 or 15(d)  of the  Securities
Exchange Act of 1934 For the quarterly period ended March 29, 1997
                                                    --------------
                                       OR

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act  of  1934  For  the  transition  period  from   _______________________   to
__________________________

                          Commission File Number 1-7352
                           ----------------------------

                            Data General Corporation
                            ------------------------
             (Exact name of registrant as specified in its charter)


        Delaware                                       04-2436397
        --------                                       ----------
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
 incorporation or organization)



4400 Computer Drive, Westboro, Massachusetts               01580
--------------------------------------------               -----
 (Address of principal executive offices)               (Zip Code)

       Registrant's telephone number, including area code (508) 898-5000
                                                          --------------

Former name, former address and former fiscal year if changed since last report:
Not Applicable

                          ------------------------------

       Indicate by check mark whether the  registrant  (1) has filed all reports
    required to be filed by Section 13 or 15(d) of the  Securities  Exchange Act
    of 1934 during the preceding 12 months (or for such shorter  period that the
    registrant was required to file such  reports),  and (2) has been subject to
    such filing requirements for the past 90 days.

                                 Yes X   No
                                    ---    ---
Number of shares outstanding of each of the registrant's classes of common 
stock, as of April 25, 1997:

    Common Stock, par value $.01                              40,487,722
    ----------------------------                              ----------
        (Title of each class)                             (Number of shares)
================================================================================

<PAGE>


                         PART I -- FINANCIAL INFORMATION


Item 1. Financial Statements.
<TABLE>
DATA GENERAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>

                                                    Quarter Ended       Six Months Ended
                                                 -------------------  --------------------
                                                 Mar. 29,   Mar. 30,   Mar. 29,   Mar. 30,
in thousands, except net income per share          1997       1996       1997       1996
------------------------------------------------------------------------------------------

<S>                                              <C>        <C>        <C>        <C>     
Revenues:
    Product ..................................   $292,022   $236,707   $541,822   $464,361
    Service ..................................     97,358     98,488    196,011    198,443
                                                 --------   --------   --------   --------
         Total revenues ......................    389,380    335,195    737,833    662,804

Costs and expenses:

    Cost of product revenues .................    198,694    159,984    363,756    316,696
    Cost of service revenues .................     62,167     64,187    126,575    129,179
    Research and development .................     27,044     23,909     53,282     45,632
    Selling, general, and administrative .....     85,544     78,198    166,053    155,365
                                                 --------   --------   --------   --------
         Total costs and expenses ............    373,449    326,278    709,666    646,872
                                                 --------   --------   --------   --------

Income from operations .......................     15,931      8,917     28,167     15,932

Interest Income ..............................      1,591      1,782      3,573      3,926
Interest expense .............................      3,141      3,365      6,344      6,815
                                                 --------   --------   --------   --------

Income before income taxes ...................     14,381      7,334     25,396     13,043
Income tax provisions ........................        600      1,000      1,200      2,000
                                                 --------   --------   --------   --------

Net income ...................................   $ 13,781   $  6,334   $ 24,196   $ 11,043
                                                 ========   ========   ========   ========

Net income per share .........................   $   0.32   $   0.15   $   0.57   $   0.27
                                                 ========   ========   ========   ========

Weighted average shares outstanding, including
common stock equivalents, where applicable ...     42,944     41,358     42,499     40,833

<FN>
No cash dividends have been declared or paid since inception.

The accompanying  Notes to Condensed  Consolidated  Financial  Statements are an
integral part of these financial statements.
</FN>
</TABLE>



<PAGE>



<TABLE>
DATA GENERAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>

                                                           (Unaudited)
                                                             Mar. 29,     Sept. 28,
dollars in thousands                                           1997          1996
-----------------------------------------------------------------------------------

<S>                                                         <C>          <C>      
Assets
Current Assets:
    Cash and temporary cash investments .................   $ 185,740    $ 178,997
    Marketable securities ...............................       7,537       25,624
    Receivables, net ....................................     271,142      257,815
    Inventories .........................................     153,505      129,783
    Other current assets ................................      27,362       24,593
                                                            ---------    ---------
         Total current assets ...........................     645,286      616,812

Property, plant, and equipment, net .....................     170,634      167,672
Other assets ............................................      82,994       75,959
                                                            ---------    ---------
                                                            $ 898,914    $ 860,443
                                                            =========    =========

Liabilities and stockholders' equity 
Current liabilities:
    Notes payable .......................................        --          1,943
    Accounts payable ....................................     153,355      121,625
    Other current liabilities ...........................     229,140      242,616
                                                            ---------    ---------
         Total current liabilities ......................     382,495      366,184
                                                            ---------    ---------

Long-term debt ..........................................     148,001      149,971
                                                            ---------    ---------

Other liabilities .......................................      14,876       15,224
                                                            ---------    ---------

Stockholders' equity:
    Common stock:
         Outstanding - 40,469,000 shares at Mar. 29, 1997
         and 39,601,000 shares at Sept. 28, 1996 (net of
         deferred compensation of $9,801 at Mar. 29, 1997
         and $7,812 at Sept. 28, 1996) ..................     467,822      460,312
Accumulated deficit .....................................    (111,285)    (135,481)
Unrealized gains on marketable securities ...............       6,366        9,708
Cumulative translation adjustment .......................      (9,361)      (5,475)
                                                            ---------    ---------
         Total stockholders' equity .....................     353,542      329,064
                                                            ---------    ---------

                                                            $ 898,914    $ 860,443
                                                            =========    =========

<FN>
The accompanying  Notes to Condensed  Consolidated  Financial  Statements are an
integral part of these financial statements.
</FN>
</TABLE>



<PAGE>



<TABLE>
DATA GENERAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
                                                                           Six Months Ended
                                                                        ----------------------
                                                                        Mar. 29,     March 30,
in thousands                                                              1997         1996
----------------------------------------------------------------------------------------------

<S>                                                                    <C>          <C>      
Cash flows from operating activities:
    Net income .....................................................   $  24,196    $  11,043
    Adjustments to reconcile net income to
     net cash provided from operating activities:
         Depreciation ..............................................      39,946       43,315
         Amortization of capitalized software development costs ....       9,924        8,107
         Other non-cash items, net .................................       6,130        1,117
         Change in operating assets and liabilities ................     (16,548)     (23,972)
                                                                       ---------    ---------

         Net cash provided from operating activities ...............      63,648       39,610
                                                                       ---------    ---------

Cash flows from investing activities:
    Expenditures for property, plant, and equipment ................     (51,775)     (50,670)
    Net proceeds from the sales (purchases) of marketable securities      14,746       26,672
    Capitalized software development costs .........................     (16,508)     (14,493)
    Other ..........................................................        --         10,599
                                                                       ---------    ---------

         Net cash provided from investing activities ...............     (53,537)     (27,892)
                                                                       ---------    ---------

Cash flows from financing activities:
    Cash provided from stock plans .................................       5,217        5,347
    Decrease in notes payable ......................................      (1,794)        --
    Repayment of long-term debt ....................................      (3,900)      (3,000)
                                                                       ---------    ---------

         Net cash (used by) provided from financing activities .....        (477)       2,347
                                                                       ---------    ---------

Effect of foreign currency rate fluctuations
 on cash and temporary cash investments ............................      (2,891)        (877)
                                                                       ---------    ---------

Increase in cash and temporary cash investments ....................       6,743       13,188
Cash and temporary cash investments - beginning of period ..........     178,997      117,201
                                                                       ---------    ---------
Cash and temporary cash investments - end of period ................   $ 185,740    $ 130,389
                                                                       =========    =========

Supplemental disclosure of cash flow information:
    Interest paid ..................................................   $   6,022    $   6,187
    Income taxes paid ..............................................   $     567    $   1,450


<FN>
The accompanying  Notes to Condensed  Consolidated  Financial  Statements are an
integral part of these financial statements
</FN>
</TABLE>



<PAGE>


DATA GENERAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1. Consolidated Balance Sheet Details
                                                        Mar. 29,       Sept. 28,
in thousands                                              1997            1996
--------------------------------------------------------------------------------

Inventories:
    Raw materials ................................     $  10,865      $   4,560
    Work in process ..............................        58,148         50,769
    Finished systems .............................        55,860         43,710
    Field engineering parts and components .......        28,632         30,744
                                                       ---------      ---------
                                                       $ 153,505        129,783
                                                       =========      =========

Property, plant, and equipment:
    Property, plant, and equipment ...............     $ 636,777      $ 638,972
    Accumulated depreciation .....................      (466,143)      (471,300)
                                                       ---------      ---------
                                                       $ 170,634      $ 167,672
                                                       =========      =========

Note 2.  Accounting Policies

         In February  1997,  the  Financial  Accounting  Standards  Board issued
Statement of Financial Accounting Standards No. 128 ("SFAS 128"),  "Earnings per
Share".  SFAS 128 is effective for both interim and annual  periods ending after
December  15,  1997.  The  Company is required by the  Securities  and  Exchange
Commission to disclose  proforma  earnings per share ("EPS") amounts computed in
accordance with the SFAS 128 in the notes to the financial  statements  prior to
required adoption.

<TABLE>
<CAPTION>

                                                                          Quarter Ended
                                         ---------------------------------------------------------------------------------
                                                       March 29, 1997                          March 30, 1996
                                         ---------------------------------------     -------------------------------------  
                                            Income         Shares     Per-Share        Income         Shares     Per-Share
in thousands, except per share amounts   (Numerator)   (Denominator)    Amount       (Numerator)  (Denominator)    Amount
                                         -----------   -------------    ------       -----------  ------------     ------


<S>                                        <C>              <C>         <C>          <C>             <C>          <C>  
Basic Earnings Per Share

Net income available to
  common stockholders                      $13,781          40,146      $ .34        $ 6,334         38,563       $ .16
                                                                        =====                                     =====

Effect of Dilutive Securities

Stock Options                                 --             2,798                      --            2,795
                                           -------          ------                   -------         ------ 

Diluted Earnings Per Share

Net income available to common
  stockholders and assumed
  conversions                              $13,781         42,944       $ .32        $ 6,334         41,358       $ .15
                                           =======         ======       =====        =======         ======       =====
</TABLE>



<PAGE>
<TABLE>
<CAPTION>

                                                                          Six Months Ended
                                         ---------------------------------------------------------------------------------
                                                       March 29, 1997                          March 30, 1996
                                         ---------------------------------------     -------------------------------------  
                                            Income         Shares     Per-Share        Income         Shares     Per-Share
in thousands, except per share amounts   (Numerator)   (Denominator)    Amount       (Numerator)  (Denominator)    Amount
                                         -----------   -------------    ------       -----------  ------------     ------


<S>                                        <C>             <C>          <C>            <C>           <C>          <C>  
Basic Earnings Per Share

Net income available to
  common stockholders                      $24,196         39,938       $ .61          $11,043       38,342       $ .29
                                                                        =====                                     =====


Effect of Dilutive Securities

Stock Options                                 --            2,579                         --          2,511
                                           -------         ------                      -------       ------

Diluted Earnings Per Share

Net income available to common
  stockholders and assumed
  conversions                              $24,196         42,517       $ .57          $11,043       40,853       $ .27
                                           =======         ======       =====          =======       ======       =====
</TABLE>


         For the quarters and  six-month  periods ended March 29, 1997 and March
30,  1996,  the  assumed  conversion  of  the 7 3/4 %  Convertible  Subordinated
Debentures due 2001, giving effect to the incremental  shares and the adjustment
to reduce  interest  expense,  results in  anti-dilution  and has therefore been
excluded from the computation.


Note 3.  Basis of Presentation and Use of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from these estimates.

         In the opinion of  management,  the  accompanying  unaudited  condensed
consolidated financial statements reflect all adjustments,  consisting of normal
recurring accruals, considered necessary for a fair presentation.  The Company's
accounting  policies  are  described  in the  Notes  to  Consolidated  Financial
Statements in the Company's  1996 Annual  Report.  The results of operations for
the quarter ended March 29, 1997 are not  necessarily  indicative of the results
of the entire fiscal year.

Note 4.  Letter of Credit and Reimbursement Agreement

         On April 18, 1997,  the company  amended  certain  covenants of its $30
million  unsecured letter of credit and  reimbursement  facility with a group of
banks. This agreement is available to secure issuances of letters of credit. The
current  agreement  has a duration of 364 days.  The facility  contains  certain
covenants,  including  restrictions on the sale or pledge of certain assets, the
declaration  of  dividends,  and the  incurrence  of other  debt.  There were $5
million letters of credit secured by this facility at March 29, 1997.



<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
              Results of Operations.

Financial Condition

         Cash and temporary  cash  investments  as of March 29, 1997 were $185.7
million,  an increase of $6.7 million  from the end of fiscal 1996.  At the same
date, the Company held $7.5 million in marketable securities,  a net decrease of
$18.1 million  during the current  six-month  period.  The decrease was due to a
reduction of the  unrealized  gain of an equity  security and the  shortening of
maturities  of  United   States   treasury   investments   which  changed  their
classification  to cash  and  temporary  cash  investments.  In  total, cash and
temporary cash  investments  along with  marketable  securities  decreased $11.4
million for the current six-month period.  The Company's  marketable  securities
are  comprised  of a single  equity  security of $7.5  million  recorded at fair
market  value and  classified  as  available-for-sale.  The  unrealized  gain on
marketable  securities  of $6.4  million is recorded as a separate  component of
shareholders' equity. Net cash provided from operations for the six months ended
March 29, 1997 totaled $63.6  million;  expenditures  for property,  plant,  and
equipment were $51.8 million;  capitalized  software  development  costs totaled
$16.5  million;  and cash provided  from stock plans  totaled $5.2 million.  The
effect of foreign currency exchange rate fluctuations on cash and temporary cash
investments was a decrease of $2.9 million.

         Net receivables were $271.2 million,  an increase of $13.4 million from
$257.8  million at fiscal  year-end  1996 due  primarily to increased  revenues.
Total  inventories at March 29, 1997 were $153.5  million,  an increase of $23.7
million from fiscal year-end 1996 primarily due to increased  purchases  related
to the growth of the Company's  CLARiiON product line. Fixed asset  dispositions
related to the sale of  demonstration  equipment  totaled  $3.8  million for the
current  six-month  period.  Management  expects  that  sales  of  demonstration
equipment will continue.

         During the current six-month  period,  the Company paid $1.8 million to
retire notes payable that had  consisted of  borrowings  by Data General  France
SAS. The increase of $31.8 million in accounts payable from fiscal year-end 1996
levels was  attributed  mainly to the  timing of  payments  related to  material
purchases. Other current liabilities, excluding the current portion of long-term
debt,  decreased  $11.6  million from fiscal  year-end  1996.  This decrease was
primarily  a result of  reduced  employee-related  accruals  and  payments  made
relating  to  previously  recorded  restructuring   accruals.   Long-term  debt,
including  the  current  portion of  long-term  debt,  decreased a total of $3.9
million  from fiscal 1996  year-end  as a result of the  Company  reacquiring  a
portion of the 8 3/8% Sinking Fund Debentures due in 2002.

         During fiscal years 1995 and 1994, the Company  recorded  restructuring
charges of $43 million and $35  million,  respectively.  No material  changes in
estimates to prior provisions or additional  charges were recorded during fiscal
1996 or the first  six-month  period of fiscal 1997.  The  following  table sets
forth the Company's  restructuring  activities  for the  six-month  period ended
March 29, 1997.  All  charges,  excluding  asset  writedowns  and certain  other
charges, are cash in nature and funded from operations.
<TABLE>
<CAPTION>
                                                                   Six Months Ended
                                                 Sept. 28, 1996       Mar.29, 1997     Mar. 29, 1997
in millions                                          Balance             Charges            Balance
----------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>                <C>    
Provisions related to terminated employees           $   2.5             $  1.0             $   1.5
Provisions for leases                                   10.0                2.4                 7.6
Writedown of assets to be sold
 or discarded and other                                  2.0                 .5                 1.5
                                                     -------             ------             -------
          Total                                      $  14.5             $  3.9             $  10.6
                                                     =======             ======             =======

</TABLE>

<PAGE>




         The employee  terminations  related to the 1995  restructuring  charges
were substantially completed during fiscal 1996. The remaining reserves at March
29, 1997 are for the remaining  severance  payments due to employees impacted by
the restructuring  actions.  The charges and remaining provisions for leases are
for the closure of various  domestic  branch  sales  offices  and excess  vacant
rental properties, primarily located in Europe.

Results of Operations

         The  Company  reported  net  income of $13.8  million  for the  current
quarter  ended March 29,  1997,  an  increase of 119% from $6.3  million for the
comparable  prior-year  period.  Net income was $24.2 million for the six months
ended  March 29,  1997,  an  increase  of 120% from $11.0  million for the first
six-month period of fiscal 1996.

<TABLE>
<CAPTION>
Revenues (in millions)

---------------------------------------------------------------------------------------------------
                                       Quarter ended                     Six months ended
                         ----------------------------------     -----------------------------------
                            3/29/97    Change     3/30/96        3/29/97     Change      3/30/96
                         ----------------------------------     -----------------------------------

<S>                          <C>         <C>       <C>            <C>          <C>        <C>  
Product                      $292.0      23%       $236.7         $541.8       17%        $464.4
  % of Total Revenues          75%                   71%            73%                     70%

Service                        97.3      (1%)        98.5          196.0       (1%)        198.4
  % of Total Revenues          25%                   29%            27%                     30%

Total Revenues               $389.3      16%       $335.2         $737.8       11%        $662.8
--------------------------------------------------------------------------------------------------
</TABLE>

         In the current quarter ended March 29, 1997, product revenues of $126.7
million  from the  Company's  AViiON  family  of open  systems  server  products
represented an increase of 10% from the comparable  period of the prior year. In
the current  quarter,  revenues from the Company's  Intel-based  AViiON  systems
increased 187%, while revenues from the  Motorola-based  AViiON systems declined
by 43% as compared  with the  comparable  period of the prior year.  The Company
anticipates that the percentage of product revenues generated by the Intel-based
AViiON products will continue to increase in fiscal 1997.  Product revenues from
the  Company's  CLARiiON  storage  systems  increased  38% from  the  comparable
prior-year period and accounted for 45% of total product revenues in the current
quarter.  CLARiiON is sold primarily  through the Company's  Original  Equipment
Manufacturer  and  distributor  channels;  thus  sales in any given  period  are
subject  to sales  cycles  and  inventory  levels  of the  Company's  customers.
CLARiiON  product  revenues  have  been  concentrated  in a  limited  number  of
customers, with a significant portion of the Company's CLARiiON product sales to
Hewlett-Packard Company. Product revenues from personal computers and peripheral
equipment  increased  $11.3  million  from the same period in the prior year and
currently  represent  10% of  total  product  revenues  compared  to 7% for  the
comparable  prior-year period.  Proprietary  MV system  revenues  declined  $3.5
million from the same period in the  prior year  and  currently  represent 2% of
total product revenues compared to 3% for the comparable prior-year period.


<PAGE>



         For the six months  ended March 29,  1997,  product  revenues of $248.4
million  from the  Company's  AViiON  family  of open  systems  server  products
increased 12% from $221.8 million for the first six-month period of fiscal 1996.
For the current  six-month  period,  the Company's  Intel-based  AViiON revenues
increased 243%,  while product revenues from the  Motorola-based  AViiON systems
declined  by 40% as compared  with the first  six-month  period of fiscal  1996.
Product revenues from the Company's  CLARiiON storage systems  increased 21% for
the comparable  six-month period in fiscal 1996.  Product revenues from personal
computer and peripheral  equipment  increased  $14.5 million from the comparable
six-month  period in the prior year and represent 8% of total  product  revenues
for the current six-month period  compared to 7% for the  comparable  prior-year
period. Proprietary MV system revenues declined $5.3 million from the comparable
period in the prior year and currently  represent 2% of total  product  revenues
for the current six-month  period  compared to 4% for the  comparable  period in
fiscal 1996.


<TABLE>
<CAPTION>
Revenues by Geographic Marketplace

--------------------------------------------------------------------------------------------------------------------
                                             Percentage of                              Percentage Change of
                                         Consolidated Revenues                             $ of Revenues
                        ------------------------------------------------------  ------------------------------------
                              Quarter ended              Six months ended                3/29/97 - 3/30/96
                        ------------------------------------------------------  ------------------------------------
                          3/29/97       3/30/96       3/29/97        3/30/96     Quarter ended    Six months ended
                        ------------------------------------------------------  ------------------------------------

<S>                         <C>           <C>           <C>           <C>           <C>                 <C>
Domestic
--------
Product                     64%           58%           62%           58%           36%                 25%
Service                     57%           58%           57%           58%           (2%)                (1%)
Total Revenues              63%           58%           61%           58%           25%                 18%

Europe
------
Product                     22%           27%           23%           28%           (1%)                (3%)
Service                     33%           32%           32%           32%            --                 (2%)
Total Revenues              24%           28%           25%           29%            --                 (3%)

Other International
-------------------
Product                     14%           15%           15%           14%           16%                 20%
Service                     10%           10%           11%           10%            1%                 (1%)
Total Revenues              13%           14%           14%           13%           13%                 15%
                                                                                                             
--------------------------------------------------------------------------------------------------------------------
</TABLE>

         The increase in domestic  product  revenues for the current quarter and
six-month  period  ended  March 29,  1997 was  primarily  a result of  increased
CLARiiON  shipments,  increased  shipments of the Company's  Intel-based  AViiON
systems,  as  well as  increased  personal  computer  and  peripheral  equipment
shipments.  The decrease in European  product  revenues,  including U.S.  direct
export sales, for the current quarter and six-month period ended March 29, 1997,
was mainly  attributable to the decrease in CLARiiON and MV revenues,  which was
partly offset by an increase in AViiON and PC product revenues.  The increase in
other  international  product revenues,  including U.S. direct export sales, for
the current quarter and six-month  period ended March 29, 1997 was primarily due
to the increase in revenues from the CLARiiON product line.

         For the  current  six-month  period,  total  revenues  in the  European
marketplace were also negatively  impacted by approximately 2% due to a stronger
U.S. dollar as compared to the six-month period ended March 30, 1996.


<PAGE>



<TABLE>
<CAPTION>
Cost of Revenues (in millions)

------------------------------------------------------------------------------------------------------------------
                                           Quarter ended                            Six months ended
                            -----------------------------------------    -----------------------------------------
                               3/29/97        Change        3/30/96        3/29/97       Change       3/30/96
                            -----------------------------------------    -----------------------------------------

<S>                             <C>            <C>           <C>            <C>            <C>         <C>  
Product                         $198.7         24%           $160.0         $363.8          15%        $316.7
 % of Product Revenues            68%                          68%            67%                        68%

Service                           62.1         (3%)            64.2          126.5          (2%)        129.2
 % of Service Revenues            64%                          65%            65%                        65%

Total Cost of Revenues          $260.8         16%           $224.2         $490.3          10%        $445.9
 % of Total Revenues              67%                          67%            66%                        67%
-----------------------------------------------------------------------------------------------------------------
</TABLE>


         The decrease in product cost as a  percentage  of product  revenues for
the six months  ended  March 29,  1997 was the result of  increasing  volumes of
higher margin  Intel-based  AViiON  systems,  manufacturing  cost reductions and
higher overall production volume.



<TABLE>
<CAPTION>
Operating Expenses (in millions)

---------------------------------------------------------------------------------------------------------------
                                                     Quarter ended                    Six months ended                              
                                         ----------------------------------   ---------------------------------
                                           3/29/97     Change     3/30/96      3/29/97     Change    3/30/96
                                         ----------------------------------   ---------------------------------

<S>                                          <C>         <C>        <C>          <C>        <C>        <C> 
Research & Development                       $27.1       13%        $23.9        $ 53.3      17%      $ 45.6
  % of Total Revenues                          7%                     7%            7%                   7%

Selling, general & administrative            $85.4        9%        $78.2        $166.0       7%      $155.4
  % of Total Revenues                         22%                    23%           23%                  23%
---------------------------------------------------------------------------------------------------------------
</TABLE>


         The Company continued to focus its research and development  efforts on
its core business  technology;  multi-user computer systems,  servers,  and mass
storage devices. In the current six-month period, gross expenditures on research
and  development  and  software  development  before  capitalization  were $69.8
million,  an increase of 16% from $60.1  million for the  comparable  prior-year
period. The increase in research and development expenditures is being driven by
investment  in the  next  generation  of  CLARiiON  products,  in the  Company's
Non-Uniform Memory Access (NUMA)  architecture for high-end servers and in THiiN
Line products for the internet.

         The increase in selling,  general and  administrative  expenses was the
result of  increased  sales and  marketing  efforts in the  server  and  storage
businesses.  Management  believes  that in the  future,  increases  of  selling,
general and administrative  expenses may be required to support business growth.
However,  the  Company's  objective is to have the ratio of these  expenses as a
proportion of total revenues  continue to decline.  At March 29, 1997 the number
of employees  totaled  4,929,  a net increase of 66 employees from September 28,
1996 and a net reduction of 17 employees from March 30, 1996.


<PAGE>



         Interest  income  for the  current  quarter  was $1.6  million,  an 11%
decrease  from $1.8 million for the  comparable  period of fiscal  1996,  due to
lower levels of invested cash and shorter  investment  maturity terms.  Interest
expense for the current  quarter was $3.2 million,  a slight  decrease from $3.4
million for the comparable period of fiscal 1996.

         The  income tax  provision  for the  current  quarter  was $.6  million
compared to $1.0 million for the comparable  prior-year period. The current year
tax  provision  relates  primarily  to foreign,  state and  federal  alternative
minimum taxes.





<PAGE>



         Statements concerning the Company's business outlook or future economic
performance;  anticipated profitability,  revenues,  expenses or other financial
items;  product or service  line growth,  plans or  objectives;  and  statements
concerning assumptions made or expectations as to any future events, conditions,
performance or other matters, are "forward-looking  statements", as that term is
defined  under the  Federal  Securities  Laws.  Forward-looking  statements  are
subject to risks,  uncertainties  and other  factors  which could  cause  actual
results to differ  materially from those stated in such statements.  Such risks,
uncertainties  and factors  include,  but are not limited  to,  fluctuations  in
customer  demand,  order  patterns and inventory  levels,  changes and delays in
product  development plans and schedules,  customer  acceptance of new products,
changes in pricing or other actions by competitors, general economic conditions,
as well as other risks detailed in the Company's filings with the Securities and
Exchange  Commission,  including Data General's Report on Form 10-K for the 1996
fiscal year ended September 28, 1996 and this Quarterly  Report on Form 10-Q for
the second fiscal quarter of 1997, which ended March 29, 1997.



<PAGE>





                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings.

         The Company's patent  infringement  suit against IBM Corporation  which
commenced  in 1994,  and  IBM's  countersuit  against  the  Company,  are in the
discovery stage in the United States District Court in Worcester, Massachusetts.
See Part II, Item 1, "Legal  Proceedings" to the Company's  Quarterly  Report on
Form 10-Q for the quarter ended  December 24, 1994. The Company  alleges,  among
other matters,  that IBM's AS/400  CISC-based and  System/390  computer  product
lines infringe certain of the Company's patents,  and seeks, among other relief,
compensatory  damages.  IBM's countersuit  alleges that certain of the Company's
AViiON and CLARiiON products infringe various IBM patents.

         The Company's second patent  infringement  suit against IBM Corporation
which  commenced in May 1996,  is in the  discovery  stage in the United  States
District  Court  in  Worcester,  Massachusetts.  See  Part  II,  Item 1,  "Legal
Proceedings"  to the  Company's  Quarterly  Report on Form 10-Q for the  quarter
ended June 29, 1996. The Company alleges,  among other matters, that several IBM
products,  including IBM's AS/400  RISC-based  computer  product line,  infringe
certain of the Company's patents and seeks,  among other relief,  injunctive and
compensatory damages.

         The Company  believes its claims are valid,  but it cannot  predict the
outcome of either litigation.


Item 6.    Exhibits and Reports on Form 8-K.

    (a)    Exhibits:

        10. (cc)Amendment dated April 18, 1997 to Letter of Credit and 
                Reimbursement Agreement.

        11.     Computation of primary and fully diluted earnings per share.

    (b)    No reports on Form 8-K were filed  during the  quarter  ended  March
           29, 1997.






<PAGE>







                                    SIGNATURE



        Pursuant to the requirements of the Securities Exchange Act of 1934, the
   registrant  has duly  caused  this  report to be signed on its  behalf by the
   undersigned thereunto duly authorized.



                                                    DATA GENERAL CORPORATION
                                                         (Registrant)



                                                    /s/ Arthur W. DeMelle
                                               ---------------------------------
                                                        Arthur W. DeMelle
                                                      Senior Vice President
                                                     Chief Financial Officer



    Dated:  May 6, 1997





<PAGE>






                                    EXHIBITS


Index to Exhibits.

    10. (cc)      Amendment dated April 18, 1997 to Letter of Credit and 
                  Reimbursement Agreement.

    11.           Computation of primary and fully diluted earnings per share.



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