Don't know about gracefully (some drivers might not cleanly shut down), but Win95 did indeed exit to DOS. It left the screen in graphics mode with the message "

Don't know about gracefully (some drivers might not cleanly shut down), but Win95 did indeed exit to DOS. It left the screen in graphics mode with the message "It is now safe to turn off your computer", but you could blindly type some command to reset it to text mode.