Compaq Deskpro 4000N Helps to Manage User Access, Optimizes Structured-task Computing, Lowers Costs.

HOUSTON--(BUSINESS WIRE)--June 16, 1997--

Network PC from Compaq Strengthens Company's Leadership

Position in Producing Highly Managed Personal Computers

Continuing to lower the total cost of ownership and simplify the management of desktop computers, Compaq Computer Corporation today announced worldwide the Compaq Deskpro 4000N, one of the first products to embody the Network PC specification, for which Compaq was one of five co-authors. The small-footprint Compaq Deskpro 4000N delivers, in a sealable-case design, many of the same benefits and functionality of conventional PCs. The sealable-case design lowers administration costs by enabling central control of hardware and software configurations. Based on industry-standard technology, the Compaq Deskpro 4000N protects customers' investments in PC-based systems and applications.

Compaq, which intends to announce pricing at a later date, plans to ship the Deskpro 4000N in volume by the end of the third quarter of 1997.

The Compaq Deskpro 4000N is designed for centrally-controlled computing environments where users perform structured tasks, require a limited number of software applications, or need to access new Java applications while maintaining compatibility with Windows-based systems. The Compaq Deskpro 4000N provides knowledge workers and productivity users with simultaneous access to server- and mainframe-based applications -- such as order-entry, point-of-sale or reservation systems -- and to PC-based mainstream applications such as e-mail and word processing.

The strategy to deploy manageability across the Compaq line of servers, desktops, workstations and portables was first demonstrated in 1991 with introduction of managed servers, then desktops in 1995, followed by portables and workstations in 1996. The Network PC continues this strategy, along with other Compaq efforts, to achieve more effective enterprise management via such industry initiatives as Web-based Enterprise Management. The Deskpro 4000N, which incorporates Intelligent Manageability features found on other Compaq Deskpro models, comes with the capabilities for Remote System Installation and Remote Wakeup.

"Compaq, the largest supplier of commercial desktop PCs in the world, (a) has a rich tradition of incorporating in its products world-class management technology that lowers the cost of deployment and management," said Mike Winkler, Senior Vice President and Group General Manager of the Compaq PC Products Group. "Today's Deskpro 4000N continues that tradition by extending the benefits of the PC client, which supports Windows- and Java-based technologies, and further provides for central control of the desktop software and hardware configuration. We also plan to continue to offer customers the best management tools available by incorporating Network PC technologies into future desktop PCs."

"The complexity of managing hardware upgrades and maintaining consistent software configurations on hundreds of desktop systems is our single biggest challenge and consumes a significant portion of our annual operating budget," said Brian Ruggiero, Vice President of Network Architecture, Countrywide Home Loans. "The Compaq Deskpro 4000N can allow us to centrally deploy and maintain consistent software configurations, and ease the chores associated with hardware upgrades, all to reduce the time and cost of desktop management. It also provides users with access to the business applications and PC productivity tools they need to work at maximum efficiency."

"The Deskpro 4000N is a great example of how desktop systems running Windows NT Workstation offer the most power, flexibility and lowest cost of ownership for network computing," said Rich Tong, Vice President of Marketing, Microsoft Corporation's Personal and Business Systems Group. "The combination of the Compaq Network PC with Microsoft Zero Administration for Windows provides our mutual customers a very easy-to-use and manageable desktop platform."

"The Deskpro 4000N provides a secure, highly manageable desktop PC that will help our customers reduce the cost of ownership," said Ed Anderson, Chief Executive Officer of CompuCom.

As part of its Management Solutions Partners Program, Compaq has worked with Intel and McAfee to ensure that their third-party configuration-management tools integrate well with Deskpro 4000N Remote System Installation, to lower the cost of deployment in distributed environments. For on going management of PC assets and software configurations, the Deskpro 4000N integrates with Intel LANDesk Configuration Manager and McAfee's planned enhancements to its Zero Administration Client(ZAC) suite. The Deskpro 4000N also integrates with other products from Management Solutions Part- ners, including Microsoft Systems Management Server, Novell ManageWise, Seagate WINLand, and Symantec Norton Administrator for Networks.

"The Compaq Network PC announcement marks another key step toward delivering highly manageable systems to businesses," said Ed Ekstrom, Vice President of Intel's Internet and Communications Group and General Manager of the Systems Management Division. "Compaq and Intel have worked closely together to ensure that Network PCs and other managed PCs, in combination with the Intel LANDesk Configuration Manager, will provide effective tools to help manage change and control costs in the network environment."

"By combining McAfee's ZAC Suite with desktop systems from Compaq, customers can immediately reduce the cost of managing and administering installed desktop systems, while paving the way for next generation Network PCs." said Zach Nelson, Vice President and General Manager for McAfee's Network Management Division.

To simplify systems administration, the Compaq Deskpro 4000N will support Microsoft Zero Administration Kit and future elements of the Zero Administration for Windows initiative. System administrators will thereby be able to centrally deploy over the network those applications and configuration settings which are tailored for particular end-user departments. For fault-prevention and -management, the Deskpro 4000N supports Compaq Insight Manager, the intelligent desktop- and server-management tool that proactively monitors component and subsystem operation to help detect and report problems before they become critical.

As recommended by the Network PC specification, the Deskpro 4000N does not include a floppy drive or a CD-ROM drive within its sealable case. It is powered (in North America) by an Intel Pentium processor with MMX technology, and includes 32MB of SDRAM (b), an internal EIDE (c) hard drive, integrated 10/100 Mb/s auto-sensing Netelligent Interface Controller with Remote Wakeup technology, a PCI slot, two USB ports, two serial ports, and a parallel port. The Deskpro 4000N will ship with Microsoft Windows NT 4.0 preinstalled, and will support Windows 3.1, Windows 95, Windows NT 3.51, and IBM OS/2. The Support Software CD for Compaq Desktop Products, which includes Microsoft Internet Explorer 4.0 for easy access to software and drivers, will also be available.

Company Background

Compaq Computer Corporation (NYSE:CPQ), 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-

(a) According to both IDC and Dataquest. (b) Synchronous Dynamic Random Access Memory (c) Enhanced Intelligent Drive Electronics

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

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