Compaq Delivers Landmark Value to Schools with New Full-Featured Multimedia PC, Monitor at $999.

HOUSTON--(BUSINESS WIRE)--Sept. 22, 1998--

Compaq's Education Desktops, Notebook Offer Exceptional Package of Today's Technologies and Classroom Software at Record Low Prices

In a move to deliver breakthrough value to schools, Compaq Computer Corporation (NYSE:CPQ) today introduced the Presario 2412ES, a full-featured multimedia education desktop PC featuring the latest technology and priced at less than $1,000 with monitor(1). The company also announced the new Presario 2416ES desktop PC and the Presario 1235ES notebook PC, aggressively priced education systems packed with the latest technology and especially configured for K-12 and higher education institutions in the U.S.

The new Presario ES desktop models feature a sleek design that reduces the chassis to approximately the size of a VCR, making these systems ideal for space-constrained environments found in classrooms and dorm rooms. With today's announcement, Compaq's education PC line, which also includes the Compaq Deskpro and Compaq Armada families, offers educators the broadest choice of desktops and notebooks to address their individual computing needs.

"We have continued to work closely with educational institutions to ensure that we provide the technology that matches their requirements and their budgets," said Gary Staunch, Director of Education, Compaq Computer Corporation. "At under $1,000, the Presario 2412ES is an exceptional, rich offering that exemplifies our commitment to deliver affordable, no-compromise computing to schools. Educators and students have come to expect, and will continue to see, a broad array of feature-rich and value-priced computers from Compaq to address their specific needs." Affordable Access for Educators, Students

Available immediately, Compaq's three new models - the Presario 2412ES and 2416ES desktop PCs and the Presario1235ES notebook PC - represent an outstanding combination of technology, form and price to help educational institutions take advantage of Internet- and multimedia-based projects in teaching and learning. With prices starting at $999(2) on select models, the Presario ES family features the latest processing power and advanced multimedia capabilities. Each carries a three-year education warranty(3), providing K-12 and higher education institutions a complete computing package that is exceptionally priced, easy to install and simple to use.

Each Presario ES desktop and notebook PC comes equipped with a choice of one of Compaq's nine LearningPaq software bundles, a compilation of popular educational and desktop security software grouped by subject matter and grade level. To provide students and teachers fast access to the Internet, email or shared files, the Presario ES family features Ethernet networking support (on desktop models) or a 10/100Mbps Ethernet PC Card (on notebook model).

The Presario ES family, standard with Microsoft Windows 98, also features special security mechanisms to safeguard computing resources. Desktop models feature a latch for schools to lock the chassis closed using their own third party cable, while notebook models include a security slot to affix notebooks in place with an optional security cable. The Presario ES Desktop PCs

Both new Compaq Presario ES desktop PCs feature a new chassis, roughly 15 percent smaller than previous models, and include both integrated speakers and detachable external speakers to help users optimize for the learning environment as well as a front-access headphone jack and front "Power On" button. While designed with a smaller footprint, the Presario ES desktops incorporate two PCI slots and a USB (Universal Serial Bus) connector. This no-compromise design enables schools to incorporate additional computing devices such as a ZIP drive and to ensure fast connection to USB-compliant devices like video recorders and digital cameras. For an incredibly vivid multimedia experience, Compaq incorporates a 128-bit graphics processor, the fastest graphic processor available today, extra video memory and cache, along with high performance MMX processors.

The Presario 2412ES: At $999 including a 14" monitor(2), the Presario 2412ES is an innovative, affordable and expandable desktop ideal for most K-12 and higher educational applications. The Presario 2412ES includes a M II(TM) 300 MMX enhanced processor, 512 KB L2 Pipeline Burst Cache, 32 MB SDRAM (expandable to 256 MB), 4.0 GB(4) Ultra DMA hard drive and 32X CD-ROM(5).

The Presario 2416ES: The Presario 2416ES, featuring additional memory and processing power, is ideal for more memory intensive applications such as development of a school newspaper or annual yearbook or for college students requiring the advanceanced processor with 3D Now! Technology!, 512 Ky $1,749(2), is a remarkable technology value providing students and educators with the latest in performance and multimedia capabilities. This network-ready notebook offers desktop power and functionality for an outstanding computing experience wherever learning takes place - whether at home, classroom or lab, on campus or in the office. For convenient Internet access, the Presario 1235ES features an "Internet key" enabling students and teachers to instantly launch both their Internet browser and dial-up connection. The advanced Presario 1235ES incorporates a 266 MHz AMD-K6 MMX enhanced processor, 32 MB SDRAM, 4.0 GB(9) Ultra DMA hard drive, Internal 24X Max CD-ROM(10), 2 MB video memory, 56Kb Integrated Modem(11), JBL Pro Stereo Speakers and a 12.1" High Performance Addressing (HPA) Display. Comprehensive Line-Up of Computing Options for Education

Recognizing that computing requirements differ from school to school, Compaq provides educational institutions a broad array of solutions to outfit entire classrooms, school districts and campuses. Compaq's education offering includes industry-leading desktop, portable, server and networking products along with extensive service, support and technology purchase programs.

For schools that would like the ability to tailor and/or manage their PCs from a central location, the Compaq Deskpro PCs and Compaq Armada notebook family deliver an exceptional combination of technology, flexibility and manageability. Compaq Deskpro PCs and Armada notebooks come standard with a choice of Windows 95 or Windows NT, with the option of Windows 98 on some models. As a result, educational institutions can have a solution that meets their specific needs. In addition, Compaq Deskpro, Armada and Professional Workstation models deliver easy control and management features through Compaq's award-winning Intelligent Manageability. With this important capability, educational instit Select models include a 32X CD-ROM(12), Premier Sound audio and an integrated speaker. In addition, the Com $199(13), the Education Multimedia Kit exemplirio ES, Deskpro or Armada families of desktop afor each dollar spent on Compaq products or serrtner.

College students may also purchase Compaq develops and markets hardware, software portable products and consumer PCs. The companmpaq marketing partners.

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Education Prices. Reseller prices may vary.

(2) All prices s apply. Call

1-800-88-TEACH for details.

(4) For hard drives, GB = billion bytes.

(5) 32X MAX CD-ROM drive data transfer rates may vary from 12B = billion bytes.

(10) 24X MAX CD-ROMces. Maximum

achievable download transmission rates are currently

unknown, may not reach to 4800Kbps.

(13) Installed and configured by Compaq at the time of purchase.