Compaq Becomes America's Preferred Retail Brand for Home Computing.

HOUSTON--(BUSINESS WIRE)--Oct. 8, 1997--

Compaq Presario is Number One According to Leading Research Firms

Reinforcing its leadership and value position in the home PC market place, Compaq Computer Corporation (NYSE:CPQ) announced that it has become the number one provider of home PCs in America at retail, according to the latest data from Audits & Surveys Worldwide, a leading market research firm.

For July and August, Compaq held the number one position at U.S. retail with 22.9 percent and 36.1 percent marketshare, respectively(1). In August, Compaq held approximately 60 percent more marketshare than its nearest competitor and more than three times the marketshare of its next nearest competitor:

U.S.Retail/Desktops, Notebooks/Audits & Surveys July 97 August 97

1) Compaq 22.9% 36.1% 2) Packard Bell  19% 22.9% 3) HP 17.3% 10.4% 4) Toshiba 12.0% 7.1% 5) IBM  8.4% 4.5%

"We are very pleased that Compaq has become America's preferred brand of home computer," said Mike Larson, Vice President of Marketing and Sales, Consumer Products, Compaq Computer Corporation. "Our comprehensive efforts to offer high quality Presario products at compelling price points, delivered at the right time, through our strong network of retailers, has resulted in a winning combination for consumers."

"A combination of competitive pricing, distribution, product mix and brand equity have come together to make Compaq the number one brand at retail," said Carl Ravitch, Executive Vice President of Audits & Surveys Worldwide.

This year, Compaq announced the broadest lineup of home multimedia PC products in the industry. This includes the Presario 1200 and 1600 Series notebook PCs, the Presario 2200 Series desktops, featuring a complete system for under $1,000(2), the Presario 4500 small form-factor minitower, and the Presario 4800 Series, featuring Intel Pentium II processors and DVD ROM drives. In addition, Compaq has made significant enhancements to its service and support programs. Through its "Extra Mile" service and support program, Compaq provides one year warranties and free technical support during the warranty period.

Other leading market research firms have recently confirmed Compaq's leadership position at retail. For the months of June, July, and August, PC Data, Inc., a leading market research firm for software and hardware point-of-sale data, named Compaq the number one PC maker at retail with approximately 24 percent market share. According to its August hardware report, Compaq owned the top spot in desktops with 37 percent of the market, and Compaq also sold more Pentium and Pentium MMX class desktop machines than any other vendor(3).

According to Personal Technology Research, Compaq has consistently held the largest share of retail shelf space for all desktops and notebooks for 1997 (Jan-Aug).

Through July, Computer Intelligence, which tracks products through PC superstores, consumer electronics stores and office supply outlets, reported that Compaq was the top brand for all desktops and notebooks for 1997 with a 25.5 percent share.

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 over a million servers. In 1996, the company reported worldwide sales of $18.1 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 names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

(1) August 1997 Audits and Survey's market research report. (2) Estimated Retail Price. Actual prices may vary. (3) August 1997 Retail Hardware Report, PC Data, Inc.

CONTACT: Compaq Computer Corporation

Mike Berman

218-514-0484

[e-mail]

or

Miller/Shandwick Technologies

Kim Burke

617-536-0470

[e-mail]