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COMPAQ TAKES AIM AT RETAIL CHANNEL: SIGNS CIRCUIT CITY, COMPUSA AND OFFICE DEPOT, NAMES INDUSTRY EXECUTIVE TO DRIVE COMPAQ RETAIL STRATEGY

COMPAQ TAKES AIM AT RETAIL CHANNEL: SIGNS CIRCUIT CITY, COMPUSA AND OFFICE DEPOT, NAMES INDUSTRY EXECUTIVE TO DRIVE COMPAQ RETAIL STRATEGY
 HOUSTON, Sept. 8 /PRNewswire/ -- Aiming its sales and marketing muscle, high volume manufacturing capacity and technology strength at the burgeoning retail market, Compaq Computer Corporation (NYSE: CPQ) today announced it has signed major distribution agreements with three of the nation's leading retailers -- Circuit City, CompUSA Inc. and Office Depot, Inc. -- to sell COMPAQ products in more than 400 new retail locations beginning in October of this year.
 Combined with high quality, low-cost products announced in June, the agreements clear the way for Compaq to make its notebook and desktop PCs easier to purchase for individual, small business and home office customers who prefer to acquire products in a retail setting.
 The company also announced that Michael A. Norris, former executive vice president and officer of Murata Business Systems, joined Compaq to oversee its retail strategy in North America as vice president, consumer products.
 "Over the past several months, we have been setting the stage for a major push into the retail market," said Ross Cooley, senior vice president, North America. "Today we are raising the curtain."
 "Our well-established brand name stands for quality, reliability, compatibility and, as the industry witnessed in June, value and low prices. We have established CompaqCare -- with its standard one-year on-site warranty -- as the most comprehensive customer service and support program in the industry. Our products and services are backed by extensive training and promotional programs aimed at satisfying our customers. We are making significant investments to advertise Compaq's superior products and services in North America," Cooley said.
 Compaq's strategy includes complementing its current reseller network (authorized resellers, specialized resellers, value-added resellers, distributors, network integrators, and systems integrators) by initially focusing on three categories of retail distribution partners: computer superstores, office product superstores and consumer electronics stores. COMPAQ products are currently sold through two fast-growing national retail chains -- Bizmart and Computer City.
 Cooley said that Compaq has "moved carefully" to add new retailers based on the overwhelming demand for all COMPAQ products. "We anticipate that our product backlog will ease in the fourth quarter to the point where we can begin giving the green light to Circuit City, CompUSA and Office Depot locations. While some models may still remain constrained through the end of the year, we believe that we can still take advantage of the busy fourth quarter selling opportunity," he said.
 These distribution agreements link Compaq with three computer retailers who are the largest in each of the three most dominant retail formats: Circuit City in consumer electronics stores, CompUSA in computer superstores, and Office Depot in office products superstores.
 Circuit City is the nation's largest specialty retailer of brand- name consumer electronics and will be featuring COMPAQ ProLinea desktop and COMPAQ Contura notebook PCs in approximately 100 superstores.
 Dallas-based CompUSA sells PCs, software and other computer-related products in a retail setting in 30 high volume locations, in 20 major metropolitan markets from coast to coast.
 Office Depot, based in Delray Beach, Fla., sells PC hardware and software, general office supplies and office furniture through 269 office products superstores, including 263 U.S. locations in 31 states and six Great Canadian Office Supplies Warehouse stores in Western Canada.
 Compaq will offer support to retailers through a variety of marketing programs including training, tailored advertising, point-of- sale materials and access to a new customer referral program.
 Other developments that have fueled Compaq's retail strategy include the availability of the COMPAQ Contura notebook and COMPAQ ProLinea desktop personal computers, preconfigured for the retail customer with Microsoft DOS, Windows, PFS WindowWorks and a pointing device.
 In addition, Compaq has recently introduced new customer support programs under CompaqCare that will especially appeal to the retail customer. These include a one-year on-site limited warranty included with all products; toll-free technical telephone support for all products, for the life of the product; and RemotePAQ, a free service that enables Houston-based Compaq technical support engineers to link to a customer's PC via modem anywhere in North America to troubleshoot hardware and software problems. Michael A. Norris, Vice President, Consumer Products
 In this newly created position, Norris, 42, is responsible for organizing Compaq's consumer product operations. This includes the development and expansion of distribution opportunities presented by the mass channels, such as computer superstores, office supply superstores and electronic superstores.
 For the previous eight years, Norris was responsible for overseeing the day-to-day operations at Murata Business Systems which included marketing, sales, product development, service and customer support, operations and distribution. Norris holds a bachelor of arts degree in English from Randolph-Macon College in Ashland Virginia. Company Background
 Compaq Computer Corporation is a world leader in the manufacture of PC systems, and desktop, portable, laptop and notebook personal computers and network laser printers. Founded in 1982, the Company reported 1991 worldwide revenues of $3.3 billion.
 COMPAQ products are sold and/or supported in more than 70 countries through a network of more than 5,000 Compaq Marketing Partners, including authorized resellers (national chains, franchisors and superstores), specialized resellers, value-added resellers (VARs), distributors, network integrators, systems integrators and authorized third-party maintainers.
 Compaq also offers a broad range of service and support programs, including free technical support through the Customer Support Center, worldwide product warranties and product information on CD-ROM.


For customer service and information, call 800-345-1518.
 -0- 9/8/92
 /CONTACT: Bob Beach or Linda Parson of Compaq, 713-374-0484; Ann Collier of Circuit City, 804-527-4000; Nathan Morton of CompUSA, 214-406-4700; Gary Schweikhart of Office Depot, 407-265-4399/
 (CPQ) CO: Compaq Computer Corporation ST: Texas IN: CPR SU: CON


CN -- NE010 -- 6906 09/08/92 10:11 EDT
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Date:Sep 8, 1992
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