Compaq Cuts U.S. Prices Up to 12 Percent on ProSignia 300 Server Models.

HOUSTON--(BUSINESS WIRE)--Nov. 5, 1996--

Third Price Cut in Three Months Signals Commitment to

Maintain Value Leadership Position in Workgroup and Small

and Medium Business Market

Compaq Computer Corporation (NYSE: CPQ) -- the world's leading server vendor -- today announced in the U.S. only that it has reduced prices on selected Compaq ProSignia 300 servers up to 12 percent. At a time when new market entrants are claiming advantages based on price, this most recent round of price reductions reaffirms Compaq's value leadership based on both price and features.

The third round of price cuts in the past three months, today's reductions clearly demonstrate Compaq's aggressive commitment to maintaining its price, price/performance and marketshare dominance in this key market segment. With today's significant price reductions, the feature-rich ProSignia 300 family -- which is easy to install and manage -- continues to offer leadership value for corporate workgroups, as well as small- and medium-sized businesses with little or no MIS resources.

"Compaq won't let price become the factor that stops customers from considering the ProSignia 300 in their purchase plans," said Bob Fernander, Vice President, Enterprise Marketing, Compaq North America. "Today's price cuts also signal our unwavering commitment to competing aggressively for business in this segment by maintaining our value leadership as defined by price, price/performance and features."

All models of the ProSignia 300 ship standard with an industry-leading three-year warranty, and Compaq's award-winning software tools, Compaq SmartStart, and Compaq Insight Manager. SmartStart optimizes platform configurations and simplifies the installation of tested and reliable servers for fast and easy server setup -- a key consideration for customers with limited MIS resources. Insight Manager -- Compaq's intelligent server and client management application -- provides efficient monitoring and control of Compaq products for cost-effective management in larger corporate settings. All ProSignia 300 servers also ship standard with the leading Internet server software -- Microsoft Internet Information Server, Netscape FastTrack, and Novell NetWare Web Server. This allows customers to set up an Internet/Intranet web server straight out of the box.

Server Price Reductions (a)

Models
                            Old Price    New Price   Percent Reductions

ProSignia 300
5/150 Model 1 (16MB RAM)      $2,111       $1,889        11%

ProSignia 300
5/150 Model 2100 (16MB RAM)   $2,932       $2,710         8%

ProSignia 300
5/120 Model 1 (16MB RAM)      $1,889       $1,667        12%

ProSignia 300
5/120 Model 2100 (16MB RAM)   $2,710       $2,488         8%

All ProSignia 300 models come standard with 16MB of ECC memory that is expandable to 208 MB -- using industry standard SIMMs -- and 256 KB of cache memory. The ProSignia 300 also ships standard with an integrated 32-Bit, PCI Ethernet controller and supports total storage of 168 GB. Other powerful features supported include the Compaq SMART-2 Array Controller and the Compaq DLT Tape Array. The SMART-2 Array Controller allows customers to dynamically configure RAID storage, including adding an additional storage volume while the server is operational.

The DLT Tape Array, which allows rapid data back up with full RAID protection, can back up a total of 200 GB of data within five hours.

The ProSignia 300 can be efficiently converted to a rack mounted configuration for maximum control, management or use of space in a data center or remote/branch office.

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 approximately 1 million servers. In 1995, the company reported worldwide sales of $14.8 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-

(a) Prices listed are estimated street prices. Reseller prices may vary.

Compaq, 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

Jerele Neeld, 281-514-0484

[e-mail]

or

Miller/Shandwick Technologies

Helen Dragoon, 617-536-0470

[e-mail]