Compaq Revolutionizes PC Document Management with Industry's First Scanner Keyboard; Latest Innovation Transforms PC into a Paperless Home Office.

the industry in providing PC users with the latest in technology and innovation, Compaq Computer Corporation (NYSE:CPQ) today introduced a unique new keyboard with a built-in optical scanner, the first product of its kind to offer easy input of paper and/or images into a PC and link the information to the PC's built-in software applications. The new Compaq Scanner Keyboard, which will be offered as an option for use with other Compaq PCs or any other industry-standard PC with the minimum hardware requirements, combines the functionality of an easy- to-use, high-quality performance scanner with an extended- function keyboard allowing users to input paper-based information and reduce paper files.

The Scanner Keyboard offers small-office, home-office (SOHO) and business users a competitively priced, space-saving device to scan important images and paper documents. The package, which integrates document management software and Optical Character Recognition (OCR), transforms the PC into a complete office with the ability to edit documents and handle filing, copying and faxing.

In addition to being offered as an option, the product will be bundled as a standard feature with Compaq's new Presario 7232 PC, part of the new 7200, 9200 and 9600 series PCs introduced today (see separate release: "Compaq Introduces New Technology- and Value-Packed Presario Home PCs"). The Scanner Keyboard also works with current ProLinea and Deskpro models and will work with future commercial desktops expected to be announced by the end of the first quarter. The Scanner Keyboard is the premiere product of Compatibles by Compaq, a new line of home peripheral products designed to work with any industry-standard PC on the market.

"At Compaq, we strive to provide our customers the industry's highest level of satisfaction by offering products that make computing easier and more efficient," said Mike Heil, senior vice president and general manager of Compaq's Consumer Products Division. "With the new Scanner Keyboard, users can now scan, organize and later retrieve documents in a matter of seconds -- no more cumbersome paper trail. And, since the scanner transfers the document verbatim into the computer, it eliminates the need for additional equipment, such as a fax machine and copier. "

Features

The Scanner Keyboard, based on Visioneer hardware and software (see separate release: "Visioneer Announces OEM and Licensing Agreement with Compaq to Integrate Scanners into PCs for the First Time"), integrates a high-performance scanner into a keyboard featuring Windows 95-keys. The scanner supports an optical resolution of 200dpi horizontally and 400dpi vertically (through software interpolation). The peripheral reduces desk space by up to 30 percent and reduces cable requirements otherwise necessary for devices, such as a fax or copier. It also reduces paper clutter around the home and office by storing and filing papers electronically for easy access.

Among the other benefits of the Scanner Keyboard is its ease of set up and use. An interface board is not required; the Scanner Keyboard plugs directly into the PC's serial port, the keyboard port and power adapter and it's operational -- just insert the paper to start.

The scanner is imbedded in the keyboard and automatically activated by the presence of paper which immediately launches the scanning application. As the paper is scanned, the image appears on the screen and the included PaperPort software reads the document and transforms it into an electronic format. To take advantage of their software applications, users can utilize PaperPort Linksd to connect their scanned documents to more than 50 popular applications, including fax, e-mail, document management and graphics imaging. The PaperPortd Software environment can scan a document in as few as six seconds per page.

Another feature of the Scanner Keyboard is the capability to annotate electronic "sticky notes" throughout a document. As with a paper sticky note, when an electronic sticky note is placed on a page, the note covers the information beneath it. However, the sticky note can be collapsed to minimize the amount of information that is hidden.

The Scanner Keyboard is compatible with 486-based PCs or higher, Windows 3.1, Windows for Workgroups 3.11, or Windows 95. The Scanner Keyboard works off a serial port; no ISA card is required.

Pricing and Availability

The Scanner Keyboard is priced at $349(a) and has a one- year limited warranty(b). It will be available in February through retail outlets in North America and it will be available through resellers by the end of the first quarter. The Scanner Keyboard is sold with everything required to start immediately: the PaperPortd Software including Links, Xerox Textbridge Optical Character Recognition software, a color- coded serial port and keyboard connectors for easy installation, power adapter and the user's guide.

Company Background

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs, servers and options. Founded in 1982, the company reported 1995 worldwide sales of $14.8 billion. Compaq products are sold and supported in more than 100 countries through 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.

(a) Estimated street price; actual prices may vary. (b) Certain restrictions and exclusions may apply. -0-

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CONTACT: Compaq Computer Corporation

Rebecca Nahas

713-514-0484

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Miller/Shandwick Technologies

Scott Collins, Eric Grodziski

617-536-0470

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