Compaq Launches New Workstation Division Announces Plans for NT-based Workstations; Forges Key Technology Alliances.

HOUSTON--(BUSINESS WIRE)--Aug. 5, 1996--Reinforcing the company's goal to better meet customers' growing requirements for distributed enterprise computing solutions, Compaq Computer Corporation (NYSE:CPQ) today announced the formation of its Workstation Division. Leveraging Compaq's leadership position in the server and desktop PC markets along with its extensive Windows NT expertise and success in driving industry-standard technologies into new markets, the Workstation Division plans to launch worldwide a family of powerful, industry standard NT-based workstations in the fourth quarter of 1996.

The new division is expanding existing Compaq relationships with Microsoft and Intel, and is forging new alliances with key technology companies, including ELSA, Inc. and Intergraph Computer Systems. These alliances will ensure that Compaq workstation products are fully optimized for mission critical environments and offer exceptional price/performance. In addition, Compaq is working with key Independent Software Vendors (ISVs) in several specialized application areas, initially including computer-aided design (CAD), software and content development, and financial services. This will enable Compaq to deliver powerful, highlyintegrated NT workstations that meet the most demanding needs of design, engineering and financial professionals at costs which are anticipated to be much lower than proprietary UNIX/RISC-based workstations.

"The formation of our Workstation Division, particularly as an organization within our newly-announced Enterprise Computing Group, is critical to Compaq's expanded global leadership goal and our ability to offer customers comprehensive distributed enterprise computing solutions," said John T. Rose, Senior Vice President and Group General Manager, Compaq Enterprise Computing Group.

"Because Compaq is a proven leader in driving industry-standard technologies into new markets -- with significant systems management expertise, partnering know-how, and strong manufacturing and distribution capabilities -- we are ideally poised to achieve a leadership position in this emerging market. Whether running highly-specialized applications or traditional personal productivity software, connected to either a small workgroup or a large corporate distributed enterprise, customers will find that our workstations seamlessly integrate operating systems, applications, and networking solutions," Rose added.

By offering products based on Microsoft Windows NT Workstation and Intel Pentium Pro microprocessors, Compaq will offer extremely attractive price/performance alternatives to proprietary workstation solutions from traditional UNIX/RISC- based vendors. In addition, by leveraging its successful track record in delivering cost-effective and comprehensive systems and desktop management solutions, Compaq plans to provide customers with the lowest total cost of ownership during the life of the workstation.

"Compaq has proven time and time again that it has the know-how to meet its customers' requirements, as evidenced by its success in the desktop and server markets," said Carl Everett, Senior Vice President and General Manager, Desktop Products Group, Intel Corporation. "Pentium Pro processorbased systems have become the platform of choice for workstation applications, such as Pro/ENGINEER and Softimage 3D. I see Compaq in an excellent position to repeat its success in the exploding Intel-architecture workstation market by drawing on its strengths in research and development, distribution, and service and support."

"Given Compaq's proven track record in delivering high-performance NT systems, we are confident that Windows NT Workstation running on Compaq's Pentium Pro-based workstations will provide customers with the application support and performance needed for the most advanced graphics and complex computational tasks," said Jim Allchin, Senior Vice President, Desktop and Business Systems Division, Microsoft Corporation. "In addition, because Windows NT Workstation supports the same 32-bit Application Programming Interface (APIs) as Windows 95, software developers can write advanced applications without the high costs typically associated with writing software for proprietary workstations, resulting in overall lower costs for customers." Partnering with Industry Leaders

With the formation of its Workstation Division, Compaq has not only expanded existing alliances with Microsoft and Intel, but has also forged new relationships with ELSA, Inc. and Intergraph Computer Systems to provide customers with the highestperforming, highest-quality technical workstation solutions.

ELSA, Inc. is an industry-leading provider of 3D graphics products used for highend visualization, 3D animation, and CAD/CAE (Computer Aided Design/Computer Aided Engineering) applications. Intergraph Computer Systems is a leading provider of 3D graphics solutions for Windows NT in the areas of visual computing, computer-aided design (CAD), engineering, analysis, manufacturing, and publishing.

Company Background

Compaq Computer Corporation, a Fortune 100 company and the world's largest supplier of personal computers, delivers useful innovation through products that network people with information. 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. In 1995, the company reported worldwide sales of $14.8 billion. The company is an industry leader in environmentally friendly programs and business practices. 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.

Compaq, Registered U.S. Patent and Trademark Office. Product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

ELSA, Inc.

"ELSA is committed to providing its customers with high-quality, high performance graphics hardware and software," said Thomas Neubert, Vice President and General Manager, ELSA, Inc. "Compaq's entrance in the workstation market, and its commitment to quality, performance and development of an open architecture closely aligns with our overall strategy. We look forward to working together to provide highly sophisticated 3D graphics technology to CAD and content development professionals."

Intergraph Computer Systems

"The teaming of Intergraph and Compaq is focused on leveraging our individual strengths," said Wade Patterson, President, Intergraph Computer Systems. "Compaq will be able to deliver a superior graphics solution to its workstation customers and Intergraph will be able to expand winning 3D graphics technology into new and broader markets. Intergraph and Compaq are in the process of exploring new areas of cooperation to provide customers with highquality 3D graphics solutions for Windows NT workstations."

CONTACT: Compaq Computer Corporation

Hedy Baker

713-514-0484

[e-mail]

or

Miller/Shandwick Technologies

Eric Grodziski 617-536-0470

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