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Compaq Launches New Low-cost, Pentium Powered ProLinea Desktops for Business Customers; Entry Level Compaq ProLinea "E" Models Priced at least $100 less than HP Vectra VE.


HOUSTON--(BUSINESS WIRE)--Oct. 2, 1995--Compaq Computer Corporation (NYSE NYSE

See: New York Stock Exchange
:CPQ CPQ Compaq
CPQ Conseil du Patronat du Québec (Canada)
CPQ Configure-Price-Quote
CPQ Conseil de Presse du Québec (Québec Press Council, Canada)
CPQ Companion Parrot Quarterly
) today fired another salvo in its ongoing drive to set the standard for value leadership with the introduction of the Compaq ProLinea "E" Series.

The new high-quality desktop personal computers are ideal for business customers who have been waiting to buy a name brand Pentium processor-based PC at a 486 price.

The six new ProLinea "E" models range in price from $1,369 to 1,999 , and entry level units are priced at least $100 below comparable products from Hewlett Packard and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) . The all Pentium processor-based ProLinea "E" Series is an extension of the Compaq ProLinea line, one of the world's best selling desktop PCs and widely recognized as the bellwether Bellwether

A leading indicator of trends.

Notes:
A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America.
 for quality and value to price-sensitive customers. Combined with Compaq's announcement in August of new Pentium-processor based desktops and across-the-board price reductions, the company is strategically positioned for what is typically the busiest selling season of the year.

"Compaq today puts an exclamation point exclamation point: see punctuation.

exclamation point - exclamation mark
 on its recent product and pricing moves that will thrill our business customers and keep our competitors shaking their heads and sharpening For image sharpening, see .
Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target
 their pencils," said Eckhard Pfeiffer Eckhard Pfeiffer (born August 20, 1941 in Lauban, Germany—now Lubań, Poland) is a business executive of German ancestry, and a former CEO of Compaq from 1991-1998. He joined Compaq from Texas Instruments, and established operations from scratch in both Europe and Asia. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees.

Quarterly sales $2499M, profits $210M (Aug 1994).

http://compaq.com/.
.

"We anticipate our competitors will as usual try to follow our leadership as we continue to set the pace for product introductions, pricing, distribution and support. Compaq's sizzling siz·zle  
intr.v. siz·zled, siz·zling, siz·zles
1. To make the hissing sound characteristic of frying fat.

2. To seethe with anger or indignation.

3.
 pace of launching new products based on the Pentium processor combined with a strong reputation for quality and reliability, top rated technical support and a highly skilled reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers.  channel will continue to make the difference," Pfeiffer added.

Compaq ProLinea "E" Series

The Compaq ProLinea "E" Series, available in volume today, is Windows 95 ready and comes standard with the latest features: a wide range of Pentium microprocessors, the PCI/ISA expansion bus architecture, large standard hard drives (630MB and one gigagbyte), 8-megabytes of memory, and a three-year limited warranty Limited warranty

A warranty with certain conditions and limitations on the parts covered, type of damage covered, and/or time period for which the agreement is good.
. The Compaq ProLinea 575e includes a 75MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc.  processor, the Compaq ProLinea 5100e includes a 100MHz processor, and the Compaq ProLinea 5120e includes a 120MHz processor.

"Compaq continues to offer customers the broadest line of Pentium processor-based products. So far, Compaq has introduced worldwide more than 200 new desktop, server and notebook models with Pentium processors to the consumer and commercial markets -- and the year is not over yet," Pfeiffer added.

Competitively Priced PCs for Business Customers

The new ProLinea "E" Series is priced significantly lower than comparable models from Hewlett Packard and IBM. For example, the Compaq ProLinea 575e comes standard with a larger hard drive, yet is priced $100 less than a similarly configured HP Vectra VE.
                  Compaq               HP              IBM
                  ProLinea 575e        Vectra VE       PC  330


Processor         Pentium 75MHz        Pentium 75MHz   Not Offered
Memory            8MB                  8MB
Hard Drive        630MB                540MB
Street  Price     $1,369               $1,469
Difference         ---                 + $100


    For more performance, the Compaq ProLinea 575e with an added
256-kilobyte secondary cache ($95) includes a larger hard drive, yet
is priced $183 less than a comparable HP Vectra VE and $124 less than
a comparable IBM PC 330:


                  Compaq               HP              IBM
                  ProLinea 575e        Vectra VE       PC  330


Processor         Pentium 75MHz        Pentium 75MHz   Pentium 75MHz
Memory            8MB                  8MB             8MB
Hard Drive        630MB                540MB           540MB
256Kbyte Cache    $95                  $179            Standard
Street Price      $1,465               $1,648          $1,589
Difference         ---                 + 183           + $124


    The 100MHz Compaq ProLinea 5100e is also priced aggressively
versus HP and IBM.  In fact, for this class of product, HP only
offers a 90MHz model.  Yet, the Compaq ProLinea 5100e with a faster
processor and larger hard drive is still priced $174 less than the HP
Vectra VE.  The same Compaq model is priced $135 less than a
similarly configured IBM PC 330 model:


                  Compaq               HP              IBM
                  ProLinea 5100e       Vectra VE       PC  330


Processor         Pentium 100MHz       Pentium 90MHz   Pentium 100MHz
Memory            8MB                  8MB             8MB
Hard Drive        630MB                540MB           540MB
Base Price        $1,639               $1,729          $1,869
256Kbyte Cache    $95                  $179            Standard
Street Price      $1,734               $1,908          $1,869
Difference         ---                 + $174          + $135


    Neither HP nor IBM offers a low cost desktop PC with a 120MHz
Pentium processor in this class of product.  The Compaq ProLinea
5120e however is still aggressively priced starting at $1,849 for a
model with a 630-megabyte hard drive:


                  Compaq               HP              IBM
                  ProLinea 5120e       Vectra VE       PC  330


Processor         Pentium 120MHz       Not Offered     Not Offered
Memory            8MB
Hard Drive        630MB;  1-Gigabyte
Street Price      $1,849; $1,999


Company 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 See AOL. , CompuServe, Internet (http://www.compaq.com), and Prodigy An online information service that provides access to the Internet, e-mail and a variety of databases. Launched in 1988, Prodigy was the first consumer-oriented online service in the U.S. , or by calling 1-800-345-1518. -0-

Compaq, Presario, 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, John Sweney, Mike Berman,

Nora Hahn, Hedy Baker, Jerele Neeld,

Brian Temple, Rebecca Nahas, Janet Dean Janet Elizabeth Ann Dean (born 28 January 1949) is a British politician. She is the Labour Member of Parliament (MP) for Burton in Staffordshire.

Born Janet Gibson in Crewe, she was educated at the Verdin Grammar School in Winsford.


713/374-0484

or

Miller/Shandwick Technologies

Donna Ruane, Cheryl Delgreco, Simon Eastwick

617-536-0470

seastwick@millercom.com
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 2, 1995
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