Compaq Lowers Prices on Contura Aero Ultra- Portable PCs; Contura Aero 486 Notebooks Now Start at $899(a).

HOUSTON--(BUSINESS WIRE)--May 17, 1995 -- Compaq Computer Corporation (NYSE:CPQ) today announced it has reduced prices on its award-winning Contura Aero ultra-portable notebook by up to nineteen percent, strengthening Compaq's price/performance position among major notebook PC vendors. Holding a 23.1 percent market share position, the Contura Aero is the industry's number one market share leader in the ultra-portable notebook category, according to market research firm Dataquest.

With prices starting as low as $899, the Contura Aero 4/25 Model 170 is the most aggressively priced 486 ultra-portable on the market today, while the Contura Aero 4/33 Model 170 is the most affordable color ultra-portable. All price cuts are effective immediately.

"With this announcement, Compaq continues to set the pace for price/performance leadership in the ultra-portable marketplace," said Ross Cooley, senior vice president, North America, Compaq Computer Corporation. "Our aggressive pricing strategy, combined with Compaq's hallmark of superior quality and reliability, will help fuel our momentum and increase our market share as we continue to turn up the competitive heat in 1995."

                 Contura Aero Price Reductions

Model               New Price   Old Price   Percent Savings

Contura Aero 4/25,
Model 170           $   899     $   999        10 percent

Contura Aero 4/33,
Model 170           $ 1,299     $ 1,599        19 percent

Contura Aero 4/33,
Model 250           $ 1,499     $ 1,799        17 percent

The 3.5 pound, "no compromise" ultra-portable notebook was designed for a wide variety of users, from traveling business executives to small business owners and individual consumers who need an affordable PC to carry between home and office. The energy-efficient notebooks come with a brilliant STN backlit VGA screen (8-inch on monochrome models; 7.8-inch on color models); 4 megabytes of memory, expandable to 20 megabytes; and hard drives ranging from 170 to 250 megabytes. The Contura Aero also provides up to six hours of battery life and features a built-in trackball pointing device, a touch-typeable keyboard with a palm rest and a PCMCIA (Personal Computer Memory Card International Association) Type II slot.

Industry Recognition

The Contura Aero has received tremendous praise from the industry since its introduction. Byte Magazine, a leading high technology publication that covers advanced computing technology, presented the Contura Aero series with its 1995 Reader's Choice Award earlier this month.

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, CompuServe, Internet (http://www.compaq.com), and Prodigy, or by calling 1-800-345-1518. -0-

(a) All pricing listed is estimated selling price; actual pricing will vary.

Compaq, Registered U.S. Patent and Trademark Office. DirectPlus is a service mark of Compaq Computer Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

CONTACT: Compaq Computer Corporation

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