Compaq Enriches Award-Winning LTE 5000 Notebook PCs; New Models Increase Performance of Flagship Portable Family.

HOUSTON--(BUSINESS WIRE)--April 15, 1996--Bolstering the power and performance of its popular LTE 5000 family of notebook PCs, Compaq Computer Corporation (NYSE: CPQ) today launched two new models of its award-winning notebook PC. Shipping today, the new high-performance LTE 5280 and LTE 5300 Pentium-based notebooks feature a highly touted and innovative modular design, with faster processors, larger displays, and increased standard base memory of 16 MB, expandable to a rich 80 MB. Compaq also announced today that the LTE 5000 family has been awarded Desktop Management Interface (DMI) certification by the Desktop Management Task Force.

"The enhanced LTE 5000 provides Compaq customers with the ultimate portable computing power tools," said Michael Winkler, senior vice president and general manager, Portable PC Division. "Customers expect Compaq to offer an equation that includes superb power, absolute performance, aggressive pricing and useful innovation, and the new LTE 5000 notebooks will exceed that promise on every count."

In its March 1996 edition, PC Laptop noted that "The LTE 5000 is the best Compaq notebook we've tested in years. It's a well-designed, meticulously manufactured machine that boasts truly cutting edge features...the LTE 5000 can only improve with age."

New and Improved Features to the LTE 5000 Family

With today's announcement, Compaq offers its customers two new and enlarged displays. Now equipped with bright 12.1- and 11.3-inch color TFT 800x600 screens, the LTE 5000 family provides mobile professionals with features that make group presentations even easier to manage.

The LTE 5300 also features the new Intel Mobile Pentium 133 MHz processor, extending the high-end of the flagship family and offering customers the fastest portable processor from Intel. Adding depth to the flagship notebook family for customers who require speed and high performance, the new LTE 5280 is Compaq's second model loaded with Intel's 120 MHz Portable Pentium processor.

Compaq customers will also enjoy superb performance with the superior memory expansion of the LTE 5000 family of products. Today's new models offer as standard 16-MB of memory, expandable to 24, 32, 48 or 80 MB, to handle even the most intense and complex applications.

Ease of Use Enhancements

Compaq has also enhanced today's two new models of the LTE 5000 family with the addition of "warm swapping" for the CD-ROM and floppy drive. While the notebook is in "standby" mode, customers can easily exchange the removable CD-ROM and the floppy drive, the most commonly swapped modular devices. This improved "ease-of-use" feature will save mobile professionals the time and inconvenience of shutting down their notebooks to complete the often-performed task. LTE 5000 users also enjoy the ability to "warm swap" their removable battery packs.

The new "warm swapping" feature will be supported in the Windows 3.1 and Windows NT 3.51 environments. For existing LTE 5000 customers, Compaq will offer a simple software upgrade so that they, too, will be able to use the time-saving "warm swapping" feature. In the near future, Compaq will make the software upgrade available through its Internet home page (www.compaq.com) and on Compaq bulletin board forums on America Online, CompuServe and Prodigy.

The LTE 5000 family offers customers a choice of operating systems, including Windows 95 and Windows 3.1, as well as Windows NT 3.51 and IBM's OS/2 Warp.

Unequaled Modularity with Network-Ready MultiBay Expansion Base

The LTE 5000 family offers customers superb flexibility and functionality, with modular devices that can be shared between the notebook and the MultiBay Expansion Base -- the only product today that offers this rich and useful innovation. The front-loading design offers mobile professionals several configuration alternatives for customizing how they use the notebook and its modular expansion base. In addition to the two hard drives supported by the unit, the MultiBay Expansion Base supports yet another two hard drives for up to 5.4 GB of system storage. It also supports two additional quad-speed CD-ROM devices and an additional diskette drive, when the unit is docked. One of the convenient and usefully innovative features of the MultiBay Expansion Base is the ability for customers to charge up to four battery packs. For customers faced with long domestic or international flights, the ability to extend their work-on-the-go is made even easier and more productive.

The MultiBay Expansion Base, priced at $499 (A), offers customers two Type III PCMCIA slots, integrated stereo speakers, integrated Ethernet, an infrared communications port, a MIDI/Game Port, plus a dedicated space for the MPEG and TV Video Adapter option.

Mobile professionals will also find the MultiBay Expansion equipped with an IrDA-1 (Infrared Data Association) compatible infrared port on both the notebook and the docking station. Compaq customers can enjoy point-to-point communication with other infrared equipped devices for wireless printing, file transfer and drive synchronization.

DMI Certified

Compaq also announced today that the LTE 5000 family has received the Desktop Management Interface (DMI) certification from the Desktop Management Task Force (DMTF). DMI certification paves the way for Compaq to provide a DMI- compliant management solution through its own Intelligent Manageability solution for notebooks later this year. For MIS managers, Intelligent Manageability for notebooks insures that information about the notebook -- such as serial number, memory, loaded software and other identifying features -- is available to both notebook users and network administrators.

Compaq's Intelligent Manageability, first introduced on desktop products in March, 1995, makes networked PCs easier to inventory, troubleshoot and protect for MIS managers, thus lowering the cost of owning and operating its personal computer assets and preserving a company's investment.

Extensive Multimedia Offerings

For notebook customers who make mobile presentations on the road or in the office, the LTE 5000 family offers easy-to-use tools to make the job an easy one. Motion Video Acceleration, integrated in the notebook, provides customers with smooth, crisp image flow. A lightweight MPEG (Motion Picture Experts Group) and TV Video Adapter option, priced at $5991, quickly and simply attaches to the notebook. The adapter provides playback of MPEG-1 media and performs full motion-video capture and playback of live video through television, camcorder, VCR and laser disk players.

The LTE 5000 family also supports both 5-1/4-inch and 3-1/2-inch formats for audio, video and photo CDs. In addition to the large, high-resolution displays, the LTE 5000 family provides customers with 16-bit digital stereo audio and integrated stereo speakers on both the notebook and the MultiBay Expansion Base.

Availability and Pricing

Shipping now worldwide, the LTE 5000 family ranges from $2,999 (A) to $5,999 (A). At the top-of-the-line, the LTE 5300, with a 133-MHz Pentium microprocessor, a 12.1-inch, 800x600, color TFT display, 16 MB of base RAM and a 1.35 GB hard drive, begins at $5,999 (A).

The LTE 5280 offers customers a 120-MHz Pentium microprocessor, an 11.3-inch, 800x600 color TFT display, 16 MB of memory and a 1.35 GB hard drive for 5,399.

Model                                            Price

New LTE 5300, Model 1350, CTFT 800x600         $5,999 (A)
New LTE 5280, Model 1350, CTFT 800x600          5,399 (A)
    LTE 5200, Model 1350, CTFT 800x600          4,999 (A)
    LTE 5100, Model 810 CD, CTFT 800x600        4,599 (A)
    LTE 5100, Model 810, CTFT 800x600           4,199 (A)
    LTE 5000, Model 810, CTFT                   3,799 (A)
    LTE 5000, Model 810, CSTN 800x600           3,399 (A)
    LTE 5000, Model 510, CSTN                   2,999 (A)

Compaq Background

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs, servers and options. The company reported 1995 worldwide sales of $14.8 billion. Compaq products are sold and supported in more than 100 countries through Compaq marketing partners, and sold directly to customers through Compaq DirectPlus at 1-800-888-5858. Compaq provides 24- hour customer support and can be reached through the Compaq forums on America Online, CompuServe, Internet (http://www.compaq.com) and Prodigy, or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518. -0-

Product names mentioned herein may be trademarks and/or registered trade marks of their respective companies.

(A) All prices mentioned herein are U.S. estimated selling prices. Reseller prices may vary.

CONTACT: Compaq Computer Corporation

Yvonne Donaldson

713-514-0484

[e-mail]

or

Miller Shandwick/Technologies

Lisa Gilbert

617/536-0470

[e-mail]