Compaq Outlines Ongoing Work with Intel on 64- Bit Merced Systems Technologies.

HOUSTON--(BUSINESS WIRE)--Oct. 23, 1996--

Compaq System Expertise Will Help Ensure Smooth Growth Path From

Existing 32-Bit Solutions

Compaq Computer Corporation (NYSE: CPQ) -- the world's leading server vendor -- outlined today its leadership role in working closely with Intel on systems technologies for their upcoming 64-bit rchitecture (IA-64), the first of which will be Intel's Merced processor.

As the only leading vendor with servers and workstations focused solely on Intel architecture, Compaq has dedicated a substantial team of its best hardware, integration and systems engineers to work directly with Intel on advancing the capabilities of Compaq systems using Intel's Merced processor.

Compaq is working to ensure that applications and operating systems used by Compaq customers today will work seamlessly on IA-64 processorbased systems. Together with Intel, Compaq will conduct extensive systems testing and integration to help ensure a compatible growth path for customers that use Compaq systems running Pentiumr or Pentium Pro processors.

"Compaq systems based on the Merced processor will achieve a substantial performance boost due to the combination of our tuned system design and the Merced processor's advanced architecture. This will make our systems ideal for running large enterprise database, data warehouse, workstation, and Internet/intranet applications," said John T. Rose, Senior Vice President and Group General Manager, Enterprise Computing Group, Compaq Computer Corporation. "Through our close collaboration with Intel, Compaq will also take full advantage of Merced processor capabilities to extend our leadership position in the value-added areas of high-performance system architecture -- including clustered systems called Compaq Server Arrays -- integration and management applications, and other key areas. Customers can expect that Compaq systems powered by the Merced processor will offer world class power, manageability, scalability and availability without the cost of proprietary solutions. The Merced processor's compatibility with today's 32-bit operating systems and applications will protect our customers' existing software investments and ensure a compatible growth path into the future."

Compaq expects to be a leading supplier of Merced processor-based systems and expects to ship systems with Intel's first Merced processor production.

In addition to the engineering work focused on Merced systems technologies, Compaq and Intel are also working together on other key server and workstation technologies and management applications. This will enhance the overall value, availability, scalability and manageability of industry-standard systems in the distributed enterprise. Activities include engineering and market development for innovative technologies such as Hot Plug PCI(a), I2O (a proposed new industry-standard for input/output technologies), clustering technology and Web- Based Enterprise Management (WBEM).

"Beginning with the introduction of the Compaq Deskpro 386 based on our Intel386(TM) processor, Compaq's technical contributions and industry leadership have been key factors in advancing the acceptance of Intel-based systems in the enterprise," said David House, Senior Vice President and General Manager, Enterprise Server Group, Intel Corporation. "Compaq and Intel's close working relationship on systems architecture is a key element in making IA-64 technology successful."

Through its Frontline Partnership with Microsoft, Compaq will ensure Windows NT customers a smooth transition from servers and workstations using Pentium Pro processors, or future IA-32 processors, to platforms using Merced technology. This includes taking advantage of the advanced capabilities of the Merced architecture, which will provide added scalability for clusters of Compaq servers running Windows NT in a distributed enterprise.

To address the full scope of integration and optimization for Compaq platforms using Merced technology, Compaq will also be working with industry-leading enterprise software and operating system vendors. This effort will ensure applications are integrated and optimized for Compaq platforms using the Merced processor. These vendors will include Baan, Oracle, SAP, and other leading enterprise application vendors.

Company Background

Compaq Computer Corporation, 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 1 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 calling1-800-345-1518.

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(a) See Compaq release dated June 26, 1996 titled "Compaq Hot Plug PCI Enables Online I/O Replacement Improving Enterprise Server Availability."

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

CONTACT: Compaq Computer Corporation

Jerele Neeld, 713-514-0484

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or

Miller/Shandwick Technologies

Helen Dragoon, 617-536-0470

Marc Gendron, 617-536-0470

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