Compaq Lowers Prices on LTE Elite Notebooks.

HOUSTON--(BUSINESS WIRE)--December 6, 1994 -- In pursuit of its goals of providing value to customers and to be the worldwide market share leader, Compaq Computer Corporation (NYSE: CPQ) today reduced prices on all LTE Elite notebooks by up to 15 percent. Introduced in March, the LTE Elite -- Compaq's powerful flagship business notebook PC -- features such breakthrough advances as a built-in AC adapter and one of the lightest total carrying weights of any full-function notebook.

Setting new standards for value and innovation in power notebooks, the Compaq LTE Elite family is the winner of PC World's 1994 "Best Buy" award for power notebooks and PC Laptop's 1994/95 Editor's Choice Award for World Class Technology.

"The innovative LTE Elite was designed as the ultimate portable, addressing

the needs of mobile professionals who require the features of a desktop in a light, portable PC," said Ross Cooley, senior vice president for Compaq North America. "We make every effort to provide customers with increased value in our popular high-performance LTE Elite family, and today's announcement makes good on that promise."

Compaq LTE Elite models, with price reductions of 9 to 15 percent, now range from $2,899(a) to $5,799, bringing even greater value to the corporate buyer. For example, a Compaq LTE Elite 4/40C Model 170, with an Advanced Passive Color VGA Display and 4MB of memory was reduced from $3,299 to $2,899. The Compaq LTE Elite 4/75CX Model 510, with an active matrix color VGA display, 8 MB of memory and a 16K internal cache was reduced from $6,499 to $5,799.

Compaq also lowered the price of the 340-megabyte hard drive option for the LTE Elite from $599 to $499. This benefits customers who either want to upgrade their hard drive or add additional hard drives configured for additional users that share the same LTE Elite notebook PC.

The LTE Elite features the industry's first and only built-in AC adapter in a full-function notebook, eliminating the cumbersome AC adapter and cables formerly necessary for today's mobile user without adding additional weight to the notebook. Users need only a slim, two-ounce power cord when they travel, making it one of the easiest-to-carry, high-performance notebooks on the market today. With its built-in adapter, the entry model LTE Elite weighs-in at a slim 6.6 pounds, and easily fits in a briefcase.

Compaq's LTE Elite also offers ultimate versatility in the choice of features, options and portability for today's power notebook users, both on the road and in the office. Addressing business users' growing needs, the LTE Elite is user-upgradeable and doubles as a desktop computer through a selection of desktop expansion options.

The LTE Elite comes with the choice of three desktop expansion bases: The Compaq SmartStation offers VCR-style motorized docking of the notebook, plus a built-in Ethernet NIC(b) and SCSI-2(c) support for seven devices, with two half-height drive bays and two ISA(d) slots provide to provide complete desktop compatibility for those users who want one PC to function well both as desktop and as a portable. Two attractively priced ministations offer Token Ring or Ethernet network connections, plus the same SCSI-2 support as the Smart Station, but without the added bays and slots.

It offers four high-performance displays; two PCMCIA slots; removable hard drives as large as 510 MB; memory upgradeable to 20 or 24 MB; and user-upgradeable Intel processors up to DX4/75 MHz. The LTE Elite supports the Compaq SpeedPaq 144/P PCMCIA Data/Fax and Cellular modem. When connected to a Motorola or Nokia cellular phone, the modem allows customers to transmit data and receive faxes, providing easy-to-use, powerful wireless communications.

Service & Support Background

Compaq offers one of the most aggressive and comprehensive support programs in the industry. As with all Compaq portables, the LTE Elite comes standard with a three-year worldwide warranty for convenient support wherever the user travels. Compaq also offers, as standard, 7x24 toll-free technical support for the product, and access to Compaq technical support via the Internet, CompuServe, Prodigy and America Online.

Compaq Product Line Background

Compaq offers different computers for different markets and types of customers, all marketed under the Compaq brand name.

            Entry           Mainstream       High End
Servers     ProSignia VS    ProSignia 500    ProLiant
Commercial  ProLinea        Deskpro XE       Deskpro XL

Desktops

Commercial Contura Aero Contura 400 LTE Eite

Notebooks

Retail Presario

Desktops

Retail Contura Aero Contura 400

Notebooks

Company Background

Compaq Computer Corporation is a world leader in the manufacture of desktop and notebook personal computers, and servers. Founded in 1982, the Company reported 1993 worldwide revenues of $7.2 billion. Compaq products are sold and supported in more than 100 countries through a network of more than 31,000 Compaq marketing partners. Compaq also sells directly to customers through COMPAQ DirectPlus at 800-888-5858. For Compaq Customer Support and Information, call 800-345-1518.

(a) All prices are estimated selling price. Reseller

pricing may vary. (b) Network Interface Card (c) Small Computer Systems Interface (d) Industry Standard Architecture

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Compaq, Deskpro Registered U.S. Patent and Trademark Office. Aero, ProLinea, ProLiant, ProSignia, LTE, Elite, Contura, Presario are trademarks of Compaq Computer Corporation. DirectPlus is a service mark of Compaq Computer Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Pentium (TM) is a trademark of Intel Corporation.

CONTACT: Compaq Computer Corporation

              Yvonne Donaldson, John Sweney, Hedy Baker, Nora Hahn,
              Mike Berman, Brian Temple
              713-374-0484
                       or
              Miller Communications
              Tony Sapienza, Donna Ruane
              617-536-0470