Compaq, Microsoft Announce Major Contracts With EDS to Revolutionize General Motors Dealer Service; More than 8,500 Compaq Servers, Microsoft Software Provide Backbone of GM's New Distributed Enterprise.

HOUSTON--(BUSINESS WIRE)--June 4, 1996-- Demonstrating the value of its Frontline Partnership, Compaq Computer Corporation (NYSE: CPQ) and Microsoft Corporation (NASDAQ: MSFT) today announced contracts with EDS for the development of a new, expansive General Motors dealer program. The contracts, which call for more than 8,500 Compaq(r) servers, internetworking products and the Microsoft(r) Windows NT(r) Server network operating system, will provide the foundation for GM ACCESS -- a new standard dealership automation program that will facilitate the exchange of real-time information and communication. The Windows NT Server-based system will link General Motors' world headquarters in Detroit to its entire North American dealership network to provide improved sales as well as customer service and satisfaction.

With GM ACCESS, General Motors expects to reduce by 30 percent the overall time it takes to communicate critical sales and service information to its dealerships, thus allowing its dealers to greatly enhance customer service. By facilitating access to and exchange of data, GM ACCESS will enable dealerships to reduce internal labor costs significantly. Equally important, GM ACCESS will enable the corporation to remotely communicate with its 8,500 North American dealer organizations from a central location, allowing dealers to focus on their core business operations -- sales and service to customers.

Information services leader, EDS, has developed for General Motors an open platform based on Compaq ProSigniad servers and the cost-effective, scaleable client/server technology of Microsoft Windows NT Server. The contracts call for an initial installation of 8,500 Compaq ProSignia 300 servers with Compaq Netelligent Ethernet repeaters running Microsoft Windows NT Server 4.0.

"The combination of Microsoft and Compaq provides for a scaleable and highly integrated, yet flexible solution which is critical to the success of the GM ACCESS project," said Wayne Stein, EDS Director of the GM ACCESS Project. "Our experiences working with the Microsoft and Compaq team have been very positive to date and we look forward to our continued collaboration."

"With GM ACCESS we are establishing a new standard for satisfying transportation needs -- dramatically changing the way we share information and critical data with our dealers to provide better service to our customers," said Marvin Kay, General Motors' Manager of Dealer Information Management. "The partnership between Compaq and Microsoft has demonstrated a unified approach to addressing the information and data sharing needs of a true distributed enterprise, one encompassing more than 8,500 dealerships throughout North America."

"The world's foremost companies are moving to open, industry-standard architectures to link their global operations as they position themselves to lead in the next century," said Ross Cooley, senior vice president, Compaq North America. "Together, with partners Microsoft and EDS, we are demonstrating the power of industry-leading partnerships by providing General Motors with an innovative foundation for a system designed to revolutionize its business operations."

"With this contract, the Compaq-Microsoft Frontline Partnership continues to demonstrate its strength in delivering innovative, powerful Windows NT Server-based solutions that meet the distributed computing needs of major enterprise organizations," said Bob McDowell, vice president of enterprise business relationships, Microsoft. "With GM ACCESS, General Motors is setting a new standard for customer service in the automotive industry."

"GM ACCESS will provide the entire GM dealer body with technology at the forefront of the automotive industry, offering better value and improved service for our customers," said dealer Spencer Hondros with Villa Marin GMC Chevrolet, Inc., Staten Island, N.Y. "Whether it's locating a new vehicle or a replacement part, or updating the equipment that services the cars and trucks, customers will feel the difference," he continued. "I'll be able to access information much faster and lower my expenses. Bottom line -- that's good for my customers and my business."

Leadership Technologies for the Distributed Enterprise

Beginning in September, ProSignia 300 servers -- Compaq's high-performance, affordable server platform for the distributed enterprise -- will be installed throughout all of GM's 8,500 North American dealerships. The Compaq ProSignia, one of the most tested system architectures in Compaq's history, offers GM dealers a highly reliable platform, optimized for the Microsoft Windows NT operating system.

Another integral component of the GM ACCESS infrastructure is Compaq Netelligent Ethernet repeater. Netelligent is Compaq's recently introduced family of high-performance networking products designed for industry-leading price/performance and ease-of-use in heterogeneous networking environments.

In preparing for this project, Compaq's Enterprise Services Group developed a reference platform for testing both the hardware and software integration for GM ACCESS. By creating a dealership model office operating platform in its Houston-based labs, Compaq and GM were able to assess first-hand the performance expandability of the system, well in advance of its implementation.

GM will deploy Microsoft Windows NT Server as its network foundation for running customer and commercial business applications in each of its 8,500 North American dealerships. To assist in the planning and deployment of GM ACCESS throughout the dealerships, Microsoft Consulting Services (MCS) provided Windows NT Server domain architecture planning. MCS also developed an automated installation process to reduce the time to install Windows NT Server and business applications in each dealership from seven hours to one hour. General Motors will employ Microsoft Systems Management Server for remote management of the GM application servers.

Frontline Partnership

The Compaq and Microsoft Frontline Partnership, signed in April 1993, is a joint agreement aimed at developing and advancing solutions to ensure unsurpassed integration, scalability and support. Under this comprehensive agreement, the two companies collaborate on making enterprise solutions easier to use and simpler to install, with the goal of providing customers with the best performance and value in the industry. As an example of the cooperative spirit of this agreement, products such as Microsoft Windows NT Server and the Windows(r) 95 operating system are broadly tested on Compaq platforms.

The two companies continue to jointly develop and promote the "Plug and Play" specification; to provide customers ease-of-use features in each company's products; and to work together to support marketing programs with mutual customers, including sharing technical support information, cross-training both sales organizations and sponsoring educational seminars for customers.

Company Backgrounds

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs, servers and options. The company reported 1995 worldwide sales of $14.8 billion. Compaq products are sold and supported in more than 100 countries through Compaq marketing partners, and sold directly to customers through Compaq DirectPlus at 1-800-888-5858. Compaq provides 24- hour customer support and can be reached through the Compaq forums on America Online, CompuServe, Internet (http://www.compaq.com) and Prodigy, or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

EDS is a leader in the global information services industry. The company's more than 95,000 employees specialize in applying a range of ideas and technologies to help business and government customers improve their economics, products, services and customer relationships. EDS, which services customers in 41 countries, reported revenues of $12.4 billion in 1995. -0-

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

Microsoft Windows NT, and Windows and are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

CONTACT: Compaq Computer Corporation

Yvonne Donaldson, Nora Hahn

713/514-0484

or

Miller/Shandwick Technologies

Donna Ruane, Lisa Gilbert

617/536-0470

or

Waggener Edstrom

Laura Pierce

206/637-9097

or

General Motors

Donna Fontana

313/556-1762

or

EDS

Renee Merem

810/265-5080