Compaq Announces Dramatic U.S. Price Cuts of Up To 36 Percent on Flat Panel Monitors; Aggressive Pricing Brings Flat Panel Display Technology To New Markets.

HOUSTON--(BUSINESS WIRE)--May 18, 1998--The world leader in monitor shipments for three consecutive years, Compaq Computer Corporation (NYSE:CPQ), today announced dramatic U.S. price reductions of up to 36 percent on its flat panel displays. The recently announced TFT450, a 14.5-inch viewable flat panel display, has been reduced 25 percent to $1,199(a). The award-winning TFT500, a 15-inch viewable flat panel display, has been reduced 36 percent to $1,599.

Today's price reductions reflect the changing flat panel market. The high cost of first generation flat panel displays limited customers to those for whom maximizing desk space was a necessity despite the price premium, such as those in financial trading. With today's price reductions, flat panel display technology is now available to a broader audience who demand the highest quality display and desire the space-saving benefits of a flat panel monitor, such as retail banking, insurance, medical, point of sale and entertainment.

"When Compaq first introduced the TFT500 in June of 1997, it was priced at $3,799, one of the industry's lowest prices. Over the past ten months, we've continued to take aggressive pricing to attain our goal of being the preferred brand of flat panel monitors," said Jerry Meerkatz, Vice President and General Manager, Compaq's Enhancements and Monitors Division. "In less than one year, the price of the TFT500 has dropped by 58 percent. Our customers have indicated they would switch from CRTs to flat panels when pricing reaches two times that of a comparable CRT. Today, with the TFT450, we reach that milestone."(b)

Compaq TFT450

First announced in February, 1998 at a price of $1,599, the Compaq TFT450 flat panel monitor is now aggressively priced at $1,199, a price reduction of 25 percent. The TFT450 flat panel monitor combines a 14.5-inch viewable active matrix Liquid Crystal Display with brilliant performance and unique features to create an unbeatable offering. With today's price cuts, the TFT450 is available to all users who need to maximize deskspace without sacrificing screen image quality.

Compaq TFT500

First introduced in June, 1997, the Compaq TFT500 flat panel display delivers an unmatched combination of size and performance. The 15-inch viewable active-matrix flat panel monitor has won seven industry awards and is now priced at $1,599. Designed for users who place a premium on saving valuable desktop space without sacrificing screen performance, the TFT500 offers customers an innovative design and flexibility that improves business productivity.

Standard Features on Compaq Monitors

Compaq designs monitors to meet rigorous specifications, including strict qualification requirements for suppliers to ensure consistent quality from prototype to production. All Compaq monitors are PC '97 Certified, guaranteeing compatibility with Microsoft operating systems and ensuring trouble-free integration of Microsoft software and hardware. Compaq monitors are also designed with AssetControl, a Compaq Intelligent Manageability capability that enables the monitors to deliver key information, such as make, model and serial number electronically for inventory management purposes.

All Compaq monitors adhere to stringent environmental standards, including industry-wide standards for reducing radiation, emissions and power consumption, such as TCO '95 Compliance, Energy Star Compliance and MPR-II Compliance. Compaq is the worldwide leader in branded monitors for three consecutive years.

Company Background

Founded in 1982, Compaq Computer Corporation, a Fortune 100 company, is a global information technology company. Compaq is the fifth largest computer company in the world and the largest global supplier of personal computers. With worldwide sales of $24.6 billion in 1997, Compaq develops and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

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 in North America. Product information and North America reseller locations can be obtained by calling 1-800-345- 1518.

Compaq North America is headquartered in Houston, Texas. Its products and services are sold and supported through a network of more than 25,000 commercial and consumer marketing partners across the United States and Canada.

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(a) Estimated street price. Reseller prices may vary. (b) Compaq P75 monitor estimated street price is $649.

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

CONTACT: Compaq Computer Corporation

Mike Berman, 281-514-0484

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Miller/Shandwick Technologies

Laura Gibbons, 617-351-4133

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