Compaq Announces New Ultra-Sleek, Power-Packed Presario Portable PC; Company Also Unveils Industry's First USB Home Phoneline Networking Option for Notebooks.

HOUSTON--(BUSINESS WIRE)--Sept. 15, 1999--

Compaq Computer Corporation (NYSE: CPQ), the notebook PC leader at retail(1), today introduced the ultra-sleek Presario 300 Series Internet mini-notebook PC and the industry's first USB home phoneline networking adapter for notebooks, enabling consumers to network Presario notebooks and desktops throughout the home.

Priced at $2,199(2), the power-packed Presario 300 Series Internet PC delivers breakthrough value and the ultimate in portability. Weighing a scant 3.08 pounds and measuring less than 1 inch thin(3), the Presario 300 is the smallest and lightest mobile computer in the Presario Notebook Family. The Presario 300 Series is the ideal computing companion for consumers who want to conveniently stay connected to the Internet anywhere. It is equipped with the latest Intel Celeron mobile processors, 64MB of memory, 56K modem and the Compaq Internet Zone for easy Internet access.

The Presario 300 Series is available today at retailers nationwide, through Compaq's "Built for You" kiosk program at more than 9,300 participating retailers or direct from Compaq at http://athome.compaq.com/store/index.asp.

Compaq today also launched an industry first - the HomeFree Phoneline USB network adapter by Diamond Multimedia for Presario notebooks. This option is based on the HomePNA network standard and allows consumers to network multiple Presario notebooks and desktops throughout the home using existing phone wiring. With a home network, two or more notebook or desktop PCs can be connected, allowing family members to share Internet access, printers and files, and also engage in multi-player, head-to-head gaming.

Priced at $69.95, the HomeFree Phoneline USB network adapter by Diamond Multimedia is available today at retailers nationwide, through Compaq's "Built for You" kiosk program retailers or direct from Compaq.

"Considering nearly half of all notebook PCs sold at retail are Presario PCs, Compaq clearly delivers what consumers are looking for - the right blend of mobile technologies and computing innovations at the right price," said Mike Larson, Senior Vice President and Group General Manager, Consumer Products Group, Compaq Computer Corporation. "And through our direct programs, which provide consumers with convenience and customization, we continue to deliver the latest technologies available."

About The Presario 300 Series

Offering Compaq's hallmark "all-in-one" design, the Presario 300 Notebook Series offers consumers a detachable drive "slice" to free them of diskette and CD-ROM drives when traveling or not needed. The drive slice snaps in place on the bottom of the unit, reconnecting the additional drives without having to "power down" the system. The Presario 300 Series includes the Compaq Presario Notebook Family's signature features, including quality audio and video performance through PCI Audio and AGP graphics. In addition, the Presario 300 Series offers easy connectivity to the Internet and a choice of three Internet access services, including free Internet access with NetZero, which saves consumers hundreds of dollars in access fees.

Like all Presario notebooks, the new Presario 300 Series is backed by Compaq's Extra Mile Service and Support program. This program features Compaq Service Connection for personalized services including software updates over the Internet, and Compaq Express Service for pick-up, repair and return of the notebook within two business days.

For more details on these products or other Compaq Consumer products, please visit the Web at http://www.compaq.com/athome.

Company Background

Compaq Computer Corporation, a Fortune Global 100 company, is the second-largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage 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 are available at http://www.compaq.com, or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

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

Footnotes:

1) Presario leading brand at retail according to NPD INTELECT

(formerly ASW) with 49% share in July 1999.

2) All prices herein are estimated selling prices. Dealer pricing

will vary.

3) Without Multimedia Expansion Unit attached.