Compaq Lowers U.S. Prices on Popular Presario Home PCs.

HOUSTON--(BUSINESS WIRE)--Nov. 14, 1996--Extending its commitment to provide superior customer value for the 1996 holiday season, Compaq Computer Corp. (NYSE:CPQ) today announced price reductions in the United States, ranging from 6 to 21 percent on most of its high performance, multimedia Presario consumer desktop and mobile home PCs.

"Compaq's broad lineup of Presario home PCs meets the needs of virtually every consumer segment by offering unparalleled performance and useful technological innovation at affordable prices," said Mike Larson, Vice President of Sales and Marketing for Compaq's Consumer Group. "Today we continue our aggressive pricing moves to further enhance the popularity of our Presario products as we head into the holiday buying season."

Compaq Presario U.S. Price Reductions

                       Old Price(a)     New Price(a)  Percent Reduction

Presario 1020           $2,999              $2,799            6%
Presario 3020           $3,499              $3,199            8%
Presario 4112           $1,499              $1,399            6%
Presario 4704           $1,699              $1,599            6%
Presario 4712           $2,199              $1,899           13%
Presario 4716           $2,799              $2,199           21%
Presario 6704           $2,399              $2,199            8%
Presario 6708           $2,999              $2,699           10%
Presario 8712           $3,299              $2,699           18%

Presario 1000 Series

With prices reduced by up to six percent, the Presario 1000 Series offers desktop performance and multimedia functionality designed for the mobile consumer in a completely integrated notebook design. Featuring a CD-ROM, diskette drive, modem, hard drive, Easy Access Buttons and speakers, the Presario 1020 and 1030 models deliver excellent multimedia and electronic communication capabilities.

The Presario 1020 features powerful desktop performance with a 120MHz Intel Pentium Processor, 16MB of EDO RAM, a large 1.08GB hard drive, internal 6X CD-ROM drive and an integrated floppy drive. The Presario 1030 features a fast 133MHz Pentium processor, 16MB of EDO RAM, a 1.44GB hard drive, 6X-speed CD-ROM drive and an integrated floppy drive. It is also available with a Lithium Ion battery.

Presario 3000 Series

Featuring a sleek PC design, the Presario 3000 Series now starts as low as $3,199. The Presario 3020, the industry's first full-featured flat panel desktop, offers an innovative space saving foot print while delivering the ultimate in desktop computing power and performance. The Presario 3020 has powerful multimedia performance with a 166MHz Pentium processor, 256KB of pipeline burst cache for memory intensive applications, 2.0GB hard drive for data and software storage and a 33.6Kbps modem for fast Internet connections.

Presario 4000 Series

The Presario 4000 Series, a smartly designed multimedia PC for the home and family, now starts as low as $1,399. The Presario 4000 Series includes the all-in-one design, with a built-in 15-inch monitor (13.8-inch viewable area) and remote control. The line also includes desktop and minitower designs with Intel Pentium processors ranging from 120MHz to 200MHz. The Presario 4712, for example, features an Intel Pentium 166MHz processor, 2.5GB hard drive, 24MB EDO RAM, and JBL Pro stereo speakers.

Presario 6000 Series

Specifically designed to meet the needs of home office customers, the Presario 6000 Series now starts as low as $2,199. The Presario 6000 offers advanced communications capabilities using a two-line 33.6Kbps Talk and Send Modem, an innovative scanner keyboard, rich multimedia features and full-edition computer programs including Microsoft Word and Lotus 1-2-3 for business applications. The Presario 6704 includes an Intel Pentium 166MHz Processor, an Internal 8X speed CD-ROM Drive, 24MB EDO RAM and JBL Stereo sound. The Presario 6708 includes an Intel Pentium 200MHz Processor, an internal 8X speed CD-ROM drive, 32MB EDO RAM, and JBL Stereo sound.

Presario 8000 Series

With prices now starting as low as $2,699, the Compaq Presario 8000 Series is the ultimate PC for the multimedia/gaming enthusiast. With high-performance, 3D graphics and high-fidelity sound, the Presario 8000 Series offers arcade quality graphics through the use of the PowerVR(TM) 3D graphics super-accelerator.

The sound system delivers unparalleled audio features through its JBL Pro premium speakers and InterWave 32-voice wavetable sound. The Presario 8712 comes loaded with an Intel Pentium 166MHz Processor, Internal 8X speed CD-ROM drive, 2.5GB hard drive, 24 MB EDO RAM, expansion slots and expansion bays.

Availability

Presario PCs are available at Compaq-authorized retail partners, including Best Buy, Comp USA, Computer City, Circuit City, Staples, Office Depot, and Office Max.

Company Background

Compaq Computer Corp., a Fortune 100 company, is the fifth largest computer company in the world and the largest global supplier of personal computers, delivering useful innovation through products that connect people with people and people with information. The company is an industry leader in environmentally friendly programs and business practices. 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. As the leader in distributed enterprise solutions, Compaq has shipped approximately one million servers. In 1995, the company reported worldwide sales of $14.8 billion. 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.

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(a) All prices listed herein are estimated U.S. selling prices. Actual prices may vary.

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

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Mike Berman, 713/514-0484

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Miller/Shandwick Technologies

Kim Burke or Wendy DeFeudis, 617/536-0470

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