Compaq Cuts Prices on Select Presario Internet Notebooks; Affordable Mobile Computing for Back-to-School Season.

HOUSTON--(BUSINESS WIRE)--Aug. 4, 1999--

Compaq Computer Corporation (NYSE: CPQ) today announced price cuts of up to $300(1) off a broad selection of Presario Internet notebooks, offering students and families more affordable computing solutions for this back-to-school season.

Select notebook price reductions include:

-- Presario 1245 reduced to $1,199, from $1,299;

-- Presario 1275 reduced to $1,499, from $1,599;

-- Presario 1685 reduced to $1,899, from $1,999;

-- Presario 1688 reduced to $1,999, from $2,299;

-- Presario 1690 reduced to $2,299, from $2,499;

-- Presario 1925 reduced to $2,499, from $2,699.

Ideal for college students, the Presario 1245 comes with an integrated 56K ITU V.90 modem(2) and a 333MHz AMD-K6(R)-2 processor with 3DNow! technology. Students won't be the only ones taking advantage of great prices this fall; the Presario 1925 ultra-thin DVD notebook features a detachable wedge offering a lightweight companion suitable for any family member. All Presario notebooks feature Compaq's exclusive Internet Zone with "Easy Scroll" button and one-touch Internet access for fast and easy surfing, a 100-hour free trial from Compaq.NET(3) or AOL(3) or Free Internet service from NetZero(4).

For more details on this announcement or Compaq Presario products, please visit Compaq's Web site 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. For more corporate information, see: http://www.compaq.com.

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.

Endnotes:

1) All prices and price reductions shown are based on estimated U.S. retail prices. Retailer prices may vary.

2) ITU V.90 modems are designed only to allow faster downloads from K56flex or V.90 compliant digital sources. Maximum achievable download transmission rates are currently unknown, may not reach 56 Kbps, and will vary with line conditions.

3) With activation of 100-hour free trial of Compaq.NET or America Online. The 100 free hours must be used within 30 days from initial sign-up. Internet access does not include local telephone company charges, if any, or applicable taxes. Any long distance charges incurred will be the responsibility of the customer. Please make sure your access number is local. A valid credit card is required to initiate the service. Other conditions may apply.

4) NetZero offer is valid in U.S. only. Free Internet access is provided by NetZero to new subscribers in exchange for certain personal information from the subscriber and an agreement by the subscriber to view targeted Web advertising. Internet access does not include local telephone company charges, if any, or applicable taxes. Any long distance charges incurred will be the responsibility of the customer. Please make sure your access number is local. Other terms and conditions apply. See NetZero Agreement for details.