Compaq Misled Investors According to Class Action Suit Filed By Spector & Roseman, P.C.

PHILADELPHIA--(BUSINESS WIRE)--April 1, 1999--Spector & Roseman, P.C. announces that a class action lawsuit has been commenced on behalf of those persons who purchased shares of Compaq Computer Corporation ("Compaq")(NYSE:CPQ) common stock between Jan. 27, 1999 and February 25, 1999 (the "Class Period").

The lawsuit has been commenced in the United States District Court for the Southern District of Texas. It charges Compaq, its President and Chief Executive Officer, Eckhard Pfeiffer, and its Chief Financial Officer, Earl L. Mason, with violating the federal securities laws by misrepresenting and/or failing to disclose material information regarding weakening demand in certain market sectors which led to slower sales of Compaq's products in those markets.

It alleges that at the same time that Compaq was experiencing a slow down in sales to small and medium size businesses, particularly in North America and Europe, defendants repeatedly made statements to the market directly and through securities analysts that demand for Compaq's products and services remained strong. Mr. Mason and other executives of the Company took advantage of the inflated stock price by selling hundreds of thousands of Compaq shares while those shares were trading at inflated prices. When Compaq belatedly revealed the slow down to the market, the price of Compaq shares plummeted, and investors who purchased shares of Compaq common stock were damaged thereby. Spector & Roseman, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.

The firm is currently representing investors as lead counsel in actions against S3, Inc., Altris Software, Dreyfus Aggressive Growth Fund, Mitcham Corporation, Vivus, Inc., and Zapata Corporation. The firm is currently representing businesses as lead counsel in the following antitrust actions: In re Flat Glass Antitrust Litigation; In re Corrugated Paper Antitrust Litigation.

If you are a member of the Class described above, you may, no later than sixty days from March 12, 1999, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or Joshua H. Grabar toll free at 888/844-5862 or via E-mail at [e-mail]. For more detailed information about the firm please visit our website at http://www.spectorandroseman.com.

SOURCE: Spector & Roseman