Class Action Against Compaq Computer Corp. Brought By Kantrowitz, Goldhamer & Graifman, P.C. For Class Through April 9, 1999.

NEW YORK--(BUSINESS WIRE)--April 14, 1999--

The Following is an Announcement by the law firm of Kantrowitz,

Goldhamer & Graifman:

Notice is hereby given that a lawsuit has been filed by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. of Chestnut Ridge, New York and Montvale, New Jersey on behalf of two Plaintiffs and a proposed class of purchasers of Compaq common stock and/or purchasers of options for common stock and/or sellers of put options for Compaq common stock against Compaq Computer Corporation (NYSE: CPQ) and certain officers and directors for the class period January 27, 1999 through April 9, 1999, inclusive ("Class Period"). The suit is filed in the U.S. District Court for the Southern District of Texas where Compaq maintains its U.S. headquarters. (For more information on the suit, see the "Investor Hotline" at the law firm's website at www.KGGLAW.COM/HOTL.HTML)

The complaint alleges that Compaq and certain officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by making false and misleading statements concerning the company's financial condition, particularly with respect to earnings and revenue during the first quarter of 1999, and that as a result of these alleged violations, the price of common shares of Compaq was artificially inflated during the Class Period.

Furthermore, the complaint alleges that, during the period defendants made false and misleading statements, certain Compaq officers and at least one director of Compaq sold shares at artificially inflated prices, using material inside information.

Plaintiffs seek to recover damages on their own behalf and on behalf of the Class and are represented by the law firm of Kantrowitz, Goldhamer & Graifman. The firm has significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.

If you were a purchaser of Compaq shares, or a purchaser of Compaq options, or a seller of Compaq put options, during the Class Period, you may, not later than sixty (60) days from April 9, 1999, move the court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Gary S. Graifman at Kantrowitz, Goldhamer & Graifman, P.C. toll-free at 800/660-7843 or via internet e-mail at [e-mail] or by writing, Kantrowitz, Goldhamer & Graifman, P.C., 747 Chestnut Ridge Road, Chestnut Ridge, New York 10977.