Compaq Announces Commitment to Develop a PC Companion; Highlights Compaq's Endorsement of Microsoft Windows CE Platform.

HOUSTON--(BUSINESSES WIRE)--Oct. 18, 1996-- Addressing customers' needs for a handheld device to leverage traditional PC capabilities while enabling a new set of resources that provide users with "information at their fingertips," Compaq Computer Corporation (NYSE: CPQ) today announced that it would develop a PC companion later this year for the North America market.

The handheld device will support the Microsoft(r) Windows(r) CE platform, an open, standards-based scaleable platform designed for a new breed of PC companions that work with, or are mobile extensions of, Windows-based desktop and notebook personal computers.

Forthcoming Compaq products based on the Windows CE platform will provide the millions of people who use Windows-based computers with convenient access to information on their PCs.

"Compaq is establishing a new breed of companion-type products that are designed to help customers more efficiently access and manipulate the massive amounts of personal and corporate information existing on their PCs and networks, both at work and at home," said Ed Olkkola, Vice President, Communications Division, Compaq. "Users will benefit from this technology because the entire industry will be able to standardize on Windows CE architecture to develop complementary, compatible products for their customers. The ultimate goal is to enhance the productivity of our customers."

"Customers are telling us they need a single solution that will keep their business and personal data current and instantly accessible when they can't be at their desks," added Olkkola. "Compaq is developing an indispensable business tool to collect, use and exchange information with a PC."

As the world's leading PC supplier, Compaq's entry into the handheld products arena complements the company's existing and future desktop and notebook products by focusing on the pocket-sized device's link and synchronization to other Windows-based computers for easy connectivity and information sharing. Additionally, Compaq's tradition for delivering high-quality and reliable PCs provides a strong and natural stepping stone for developing a PC companion and delivering overall computing solutions.

Target markets will include Compaq's traditional corporate customers, as well as individuals within small-to large-sized businesses, work-at-home individuals and sophisticated consumers, who purchase PC companions for their own professional and personal advancement.

"Until now, no one handheld device could begin to satisfy the needs of all consumers, as they strive to manage multiple data types, scattered across numerous locations, and accessible to them at different times," said Andy Seybold, Editor-in-Chief, The Outlook on Communications and Computing. "Products which are created based on the Windows CE platform, for the first time, will truly be `companions' to the PC, spawning a whole new host of applications and portable productivity solutions."

With integrated support for a variety of industry-leading Personal Information Management (PIM), e-mail, word processing and spreadsheet applications, and a standard Internet browser, the Compaq Windows CE-based handheld offering will be the ideal tool for business and consumer PC owners who need a system to keep their business and personal data synchronized and readily accessible.

Compaq and Microsoft entered into the Frontline Partnership in April 1993, agreeing to jointly develop, promote and sell products based on industry-standard technology. The partnership laid the groundwork for this emerging class of products and has been instrumental in the development of Compaq's PC companion.

Availability

Compaq's PC companion product will be available in North America later this year and will be rolled out worldwide during 1997.

Company Background

Compaq Computer Corporation, a Fortune 100 company, is the fifth largest computer company in the world and the largest global supplier of personal computers, delivering useful innovation through products that connect people with people and people with information. The company is an industry leader in environmentally friendly programs and business practices. Compaq is strategically organized to meet the current and future needs of its customers, offering Internet and enterprise computing solutions, networking products, commercial PC products and consumer PCs. As the leader in distributed enterprise solutions, Compaq has shipped approximately more than one million servers. In 1995, the company reported worldwide sales of $14.8 billion. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products can be found at http://www.compaq.com or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518. -0-

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

CONTACT: Compaq Computer Corporation

Rebecca Nahas, 713/514-0484

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Miller/Shandwick Technologies

Jessen Wehrwein, 617/536-0470

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