Compaq Further Strengthens Position In Korea With Creation Of New Subsidiary.

SEOUL--(BUSINESS WIRE)--June 14, 1995--Continuing its market expansion in the Asia Pacific Rim, Compaq Computer Corporation (NYSE:CPQ) today announced the official opening of its 35th worldwide subsidiary, Compaq Computer Korea.

Lim Soon Hock, vice president and managing director of Compaq Computer Asia/Pacific Pte Ltd, said, "Over the last number of years, Compaq has been steadily increasing its presence in the Asia Pacific region. Today's opening of the Korean subsidiary demonstrates Compaq's increased commitment to our growing base of customers in a market that has traditionally been dominated by local vendors."

According to Lee Kang Hoon, country manager of Compaq Computer Korea Ltd, the new operation reinforces the significance of the local market to the Company both in the Asia Pacific region and worldwide. "Today is a significant day for Compaq and the IT industry in Korea," said Lee. The new subsidiary represents a long-term commitment to our users, resellers and strategic partners in Korea. We are now in a stronger position to provide our customers with high quality products and services."

According to International Data Corp, an independent market research firm, the PC market in Korea totaled 1.19 million units in 1994.

"Today, the South Korean PC market is the second largest market in Asia. And the rising demand for PC products in Korea is expected to grow rapidly due to the downsizing trend and the growth of the home PC market. Compaq Korea, with its growing distribution network, is well positioned to respond to the needs of the Korean customer," Lee added.

Compaq Computer Korea, which is staffed by local management and employees, will offer a full range of products through a variety of resellers and distributors to ensure that the demands of each customer segment are met.

Other Asia/Pacific Activities

During the past 12 months, Compaq has achieved tremendous growth around the Asia Pacific region. The company plans to more than double the manufacturing space at the Singapore manufacturing facility by the beginning of 1996, and it has commenced operations at its facility in Shenzhen, China. Additionally, earlier this year, Compaq established a subsidiary in Taiwan and an office in Chengdu, China.

Corporate Background

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs and servers. Founded in 1982, the company reported 1994 worldwide sales of $10.9 billion. Compaq products are sold and supported in more than 100 countries through a network of more than 38,000 Compaq marketing partners. Compaq also sells directly to customers through Compaq Direct Plus 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- 800-345-1518.

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