Compaq CEO Pfeiffer Unveils Company Strategy; Synergy of Compaq-Digital-Tandem Laying Cornerstone for 'New World of Computing'.

NEW YORK--(BUSINESS WIRE)--June 12, 1998--In a defining moment for the computing industry, Compaq Computer Corporation (NYSE:CPQ) today unveiled its strategy for combining the strengths of Compaq with those of its recent acquisitions, Digital Equipment Corporation and Tandem Computers, to lay the "cornerstone for the new world of computing."

"Our commitment to our customers is to provide more choice, more power and more freedom than ever before," Eckhard Pfeiffer, Compaq President and Chief Executive Officer, said, speaking here at a press conference the day after the completion of the $8.4 billion acquisition of Digital, based on the June 11 Compaq closing stock price.

Pfeiffer further asserted, "The energy, talent and experience of the combined company will deliver the best computing solutions and innovative products and technologies, all backed by global services and support."

Two major strategic points were underscored by Pfeiffer: the Company's commitment to extend to extend industry standards into the enterprise and the continual enhancement of the customer relationship.

Leadership in Industry Standards

Compaq is the undisputed leader in industry-standard computing through its market share of Windows NT, SCO, UNIX and NetWare. The Company plans to extend its leadership position in Windows NT through the continued deployment of application solutions, dedicated enterprise sales teams and its field service and support organization. Compaq employs more NT-certified engineers than its next three largest competitors combined.

Bill Gates, Chairman and CEO of Microsoft, said, "The strong market presence of Compaq, combined with Digital's technologies and extensive worldwide services and support for Windows NT, offers customers excellent Windows NT solution environments from the small business to the most demanding enterprise. We look forward to our continued customer-centered partnership."

Compaq plans to extend its lead in 64-bit computing with Digital UNIX and Alpha-based systems. Compaq will continue to expand its presence with Digital UNIX as the industry standard for the IA-64 architecture and develop product capabilities and tools to ensure its seamless interoperability with NT. With a five-year head start and more than 11,000 64-bit applications running on Alpha-based systems worldwide, Compaq will leverage Alpha as a strategic platform for power-hungry applications such as data warehousing, technical computing and Internet commerce.

Compaq is committed to maintaining its lead in business-critical solutions by continuing the investment in OpenVMS and Tandem NonStop Himalaya and using those technologies to fuel the development of industry-standard enterprise NT.

Customer Relationships

Compaq will extend its ability to partner with its customers at a strategic level in multiple ways. The increase in enterprise-skilled customer-facing resources from the combination of Compaq, Digital and Tandem will enable greatly improved account management through all levels of customer engagement. The combination of extensive customer-facing resources, the largest network of channel partners in the world and an enhanced focus on e-commerce offers customers the most flexibility and choice while enabling Compaq to deliver products, services and solutions at the lowest delivered cost.

Compaq, the industry leader in deploying volume, packaged solutions, combined with Digital and Tandem's expertise in business-critical solutions, will deliver to its customers the fastest "time to solution" in the marketplace. Compaq has the largest NT market share in SAP, Baan, Oracle and Microsoft Exchange, twice that of its nearest competitor. Digital and Tandem lead in supporting the most demanding infrastructure applications including mail and messaging, intranet, extranet and e-commerce as well as business-critical applications in communications, finance and manufacturing.

Compaq's goal is to support its customers with comprehensive global services. This includes providing complete lifecycle services and a single point of accountability for planning, designing, implementing, managing and supporting customers' computing environments. In more than 100 countries, Compaq now has a staff of 25,000 IT professionals including 2,000 Microsoft-certified engineers, 3,000 UNIX engineers and 700 NetWare-certified engineers.

Company Background

Compaq Computer Corporation, the world's largest computer manufacturer, is a Fortune Global 200 company and the largest global supplier of personal computers. Founded in 1982, Compaq develops and markets hardware, software, solutions and services including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communications products, commercial desktop and portable products and consumer PCs. The company is a 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 www.compaq.com or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

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

CONTACT: Compaq Computer Corporation

Jim Finlaw, 281-514-6137

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Miller/Shandwick Technologies

Mark Ostermann, 281-514-5893

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Compaq Investor Relations 

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