Compaq Extends LTE 5000 Flagship Notebook Family with Two New High-Performance Models.

HOUSTON--(BUSINESS WIRE)--Nov. 14, 1996--

Price Reductions Up to 18 Percent on LTE 5000 Line and 21

Percent on Armada 1100 Family; Modem Prices

Reduced by 29 Percent

Editor's Summary Compaq Computer Corporation today announced:

-- A new top-of-the-line LTE 5000 model, the LTE 5400, with Intel's 150 MHz Pentium processor for mobile computing, and 512-K Level 2 cache

-- Availability of the high-performance LTE 5380 with 133 MHz Pentium processor

-- A new 2.16 GB SMART hard drive option for the LTE 5000 product line

-- Price reductions up to 18 percent across the entire LTE 5000 family of notebooks PCs

-- Price reductions up to 21 percent on the Armada 1100 family, maintaining Compaq's position as the price leader in the 100 MHz Pentium color notebook category

-- Price reductions up to 29 percent on select Compaq modems

Continuing its drive to provide customers with the high performance and flexibility they require for advanced portable computing, Compaq Computer Corporation (NYSE:CPQ) today unveiled the LTE 5400, the new high-performance leader in its flagship portable family which features Intel's new 150 MHz Pentium processor for mobile computing.

The company also announced the availability of its powerful LTE 5380 notebook computers; price reductions up to 18 percent on LTE 5000 portables; Armada 1100 family price reductions up to 21 percent, maintaining Compaq's position as the value leader for this category of products; and price reductions up to 29 percent on the SpeedPaq modem family.

"Compaq continues to push the performance envelope in the portable computing arena with the addition of these two new portables to our performance notebook line-up," said Chet Pribonic, Vice President, Compaq Portable PC Division. "The LTE 5000 family has been highly successful, and our customers have echoed their resounding acceptance through outstanding order rates. Today, we are strengthening our momentum and clearly reinforcing our promise to provide customers with the features and functionality they demand."

"The 150 MHz Pentium processor is the most advanced technology for portables today," said Stephen Nachtsheim, Vice President and General Manager, Mobile and Handheld Products Group, Intel Corp. "The 150 MHz Pentium processor allows Compaq to deliver the latest desktop-equivalent experience in a notebook form factor. It enhances full-screen video performance, making for the best possible user experience available today."

The LTE 5400 is equipped with Intel's top-of-the-line 150 MHz Pentium processor for mobile computing; new 512-K Level 2 cache which improves performance in graphics and processor/memory-intensive applications; a 12.1-inch Color Thin Film Transistor (CTFT) display with 800 x 600 resolution; 32MB (megabytes) of RAM (Random Access Memory) (a); and a 2.16-GB SMART hard drive.

The LTE 5400 provides the bandwidth needed for today's intense multimedia challenges and powerful operating systems such as Windows NT. This high-performance family offers breakthroughs in flexibility for mobile and desktop users, true 64-bit architecture, and memory expandable to 80MB.

Customers also enjoy the ability to customize their Compaq notebooks with modular devices that can be shared with either of two expansion base options. When combined with either of the multibay expansion bases, this family of notebook PCs enables customers to create a multitude of configurations using such modular devices as a 6X CD-ROM; a second, third or even fourth hard drive, for up to 8.6 GB of storage; and a removable diskette drive. Users can also charge up to four batteries at the same time.

In its August edition, PC Computing Magazine awarded the LTE 5000 its highest honor -- a five star rating -- giving it "show stopper" status in its "Multimedia Marvels" category. The verdict on the LTE 5000 family of notebook PCs, according to the magazine: "When only the best will do, look no further."

Prices for the LTE 5400 start at $5,599 (b). Compaq is currently shipping the models to resellers worldwide.

Availability of LTE 5380

Today, Compaq also announced the availability of the LTE 5380. For those mobile customers who require access to more data on a notebook using graphics-intensive or spreadsheet applications, the LTE 5380 features a 12.1-inch high-resolution CTFT display offering 1024 x 768 resolution. The LTE 5380 comes standard with a 133 MHz Pentium processor; 256-K Level 2 cache; 16 MB RAM; and 2.16 GB SMART hard drive.

Intelligent Manageability -- New 2.16 GB SMART Hard Drive Option

As customers move mission-critical applications to portable computers, Compaq responds by expanding its Intelligent Manageability offerings to include comprehensive fault management capabilities through the new SMART (Self-Monitoring, Analysis and Recording Technology) hard drive for portable PCs. When using Compaq Insight Manager, the SMART hard drive monitors its own health and sends a warning signal to the user or network administrator if the drive is about to fail. As a result, customers can take swift action to replace the drive before it fails, thus preventing loss of critical data.

Compaq's Intelligent Manageability -- including asset management, security management and fault management components -- is a convenient and effective way for network administrators and portable PC users to remotely manage information about the PC. Further security features enable the user to secure the portable and the data stored within through third-party cable lock options and power-on passwords, thus making portable PCs easier to inventory and protect, while minimizing the total cost of PC ownership.

Price Reductions on the LTE 5000 & Armada 1100 Families

Continuing its commitment to be the value leader in notebook computing, Compaq today reduced prices in the United States on the LTE 5000 line by up to 18 percent, with prices now starting as low as $3,199. The company also announced price reductions up to 21 percent on the Armada 1100 portable family, offering unsurpassed value in this category of 100 MHz Pentium color notebooks. The Armada 1100 family now starts as low as $1,499 for the Armada 1120.

Model        Old Price      New Price        Percent Savings
LTE 5250      $3,799         $3,199               18%
LTE 5280       4,599          3,899               18%
LTE 5300       4,999          4,399               14%
LTE 5380      --------        5,499             --------
LTE 5400      --------        5,599             --------
Armada 1120T   2,299          1,999               13%
Armada 1120    1,899          1,499               21%
-0-

Equipped with a 100 MHz Pentium processor for mobile computing, color displays in either active-matrix or dual scan, and 810 MB hard drives, the Armada 1100 family offers customers a rugged, easy-to-use notebook with high performance and an exceptional price/performance equation. Each new model includes pre-installed Microsoft Windows 95 operating system software, as well as NetScape Browser and MS Explorer, Microsoft Works, Astound CSE and more. The Armada 1100 notebooks also feature slots for two Type II PC cards or one Type III PC Card.

Modem Price Reductions

Compaq -- the world's fourth leading supplier of modems -- also announced 29 percent price reductions on its powerful Compaq SpeedPaq 288 Telephony modem. Previously priced at $299, the SpeedPaq 288 is now available for $211. This PC Card works as a fax or modem in any notebook computer with an industry-standard PCMCIA Type II slot, providing users easy, real-time access to any corporate network. Plug-and-play support allows users to swap the card in and out without rebooting their computers.

Additionally, the SpeedPaq 288, when used with Compaq "Telephony-Ready" notebook computers, such as the Armada 4100 family and most models of the LTE 5000 family, provides advanced telephony features. With the Just Connect software, users can make and receive hand-free phone calls, send and receive faxes, connect to remote computers, transfer files -- even over the course of a single voice phone call -- and use the computer as a fully digital telephone answering machine with password protected mailboxes. All these time-saving features are conveniently grouped in an easy-to-use, intuitive desktop metaphor. Even external communications programs can be launched from inside Just Connect, giving users easy access to online services, Internet service providers or corporate networks from one central point.

Introduced in June, the SpeedPaq 288 can be connected to a variety of cellular phones from leading manufacturers. With a wide range of Direct Connect cables and/or a wireless phone, mobile users have access to the same voice, fax and data features as with a landline connection. The SpeedPaq 288 automatically detects a wall jack's digital line and shuts itself off in the presence of a high current.

The company also reduced prices on the Compaq 288 Fax Modem by 21 percent, from $250 to $199. Ideal for transmitting graphics and other large files, the PC Card compatibility allows for hot swapping. The high-speed modem can send and receive faxes in the background or schedule automatic fax delivery. The Compaq 288, the company's fastest landline fax modem to date, has been tested and supported for all Compaq notebook platforms. With plug-and-play support, users simply plug the Compaq 288 Fax Modem into a computer PC Card slot, and it's ready to use without needing to reboot.

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 one 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.

(a) 16MB of RAM on the system board and a 16MB memory option installed, for a total of 32MB. (b) All prices contained herein are estimated U.S. selling prices. Reseller prices may vary. -0-

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

Yvonne Donaldson, 713/514-0484

[e-mail]

or

Miller/Shandwick Technologies

Lizzie Allen, 617-536-0470

[e-mail]