Compaq Invests in Intellon's Home Networking Technology; Companies to participate in joint development of products for the home.

HOUSTON--(BUSINESS WIRE)--Dec. 4, 1995--In a move designed to accelerate the convergence of home PCs and home automation technology, Compaq Computer Corporation (NYSE:CPQ) and Intellon Corporation today announced that Compaq has made an equity investment in Intellon, a privately-held company, and that the two companies have reached a technology agreement aimed at making Compaq technology the dominant platform for providing the network infrastructure in the home. Terms of the investment were not disclosed.

Compaq is the first PC manufacturer to invest in Intellon's implementation of the Consumer Electronics Bus (CEBus) in- home networking technology. The CEBus Standard, designed by the Electronic Industries Association (EIA), is the only sanctioned open standard and has emerged as the dominant standard for in-home networks. The CEBus Standard was developed with the participation of over 200 companies from various industries.

"The timing of this partnership is significant because the PC is now emerging as a vehicle for entertainment, and as the communications gateway for the home, including the Internet and on-line services," said Bob Stearns, vice president of Compaq's Technology and Corporate Development. "Compaq is committed to open standards for networking the home, and by investing in Intellon, we are investing in the future of the home PC. The CEBus Standard is vital to allowing the PC to achieve its full potential as the communications and control center within the home."

Intellon provides the platform and tools for developers of CEBus compliant products. Its innovative Spread Spectrum Carrier(tm) technology was selected by the EIA as the power line and radio frequency components of the CEBus Standard. Intellon's CEBus compliant components and tools are widely used by manufacturers of lighting controls, security systems, electric meters and consumer electronics.

"The PC is ideal for the home's information and control center," said James Vander Mey, founder and CEO of Intellon. "By embracing the concept of the home network, Compaq is once again demonstrating its market leadership and showing vision and innovation for the future of the home PC market."

The CEBus Standard has helped push the boundaries of home automation capabilities, connecting the in-home LAN (Local Area Network) to outside services, such as utility companies for energy management, and providing the infrastructure for a communications path for today's and tomorrow's "information highway." As one of the pioneers in the development of the CEBus Standard, Intellon's products are a critical technology in providing the network infrastructure within the home.

In addition to its investment in Intellon, Compaq's commitment to the CEBus Standard extends to the CEBus Industry Council (CIC), a not-for-profit trade organization of companies that provides CEBus compliant products and services. Intellon is a member of the CIC's board of directors, and Compaq also recently became a board member. The CIC provides technical and marketing services to promote the sales of CEBus compliant products. The Council also oversees conformance testing, provides a clearinghouse for interoperability issues, develops marketing communications materials and provides educational services.

Company Background

Founded in 1989, Intellon Corporation is a privately-held company based in Ocala, Florida. The company is the dominant supplier of technology, integrated circuits, components and tools for the development of CEBus compliant products. Intellon's products and technologies are key to a variety of fastgrowing markets, including utility, home, industrial and commercial building automation in the United States and worldwide.

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 throughout the world. Compaq also sells products 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 On-Line, CompuServe, Internet (http://www.compaq.com), and Prodigy, or by calling 1-800-345-1518. -0-

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. CEBus is a registered servicemark of the Electronic Industries Association. Spread Spectrum Carrier is a trademark of Intellon Corporation.

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Intellon Corporation

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