Compaq Signs Leading Technical Distributors to Expand Professional Workstation and Server Sales.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 1, 1997--

Avnet Inc. and Pioneer-Standard Electronics Inc. Open New Avenues

for Compaq Enterprise Products

Compaq Computer Corporation (NYSE:CPQ) today announced that it has signed distribution contracts with two of North America's leading technical computing distributors to drive Compaq's Professional Workstation and ProLiant and ProSignia server products further into technical value-added reseller (VAR) channels to reach more technically oriented end user professionals.

As workstation and server distributors, Avnet Inc. (NYSE:AVT) and Pioneer-Standard Electronics Inc. (NASDAQ:PIOS) will provide Compaq greater access to technical and creative end users who are the main targets for Compaq's enterprise products. In turn, Compaq customers will gain greater access to VARs that have a specialized focus in vertical market segments -- such as computer-aided design and engineering (CAD/CAE), digital content creation (DCC) and electronics design automation (EDA) -- and therefore provide a higher degree of application expertise, service and support and system integration capabilities that are vital to support the business-critical workstation applications of customers.

"Professionals in the CAD/CAE, financial, DCC, EDA and other technical and creative markets demand more than just a box; they require an optimized solution that meets their specialized needs. And, they want that company to support them as their needs continue to grow," said Bob Fernander, Vice President of Enterprise Marketing, Compaq North America. "By signing up these leading technical computing distributors, we now have access to a larger number of resellers who are familiar with the specialized needs of these professionals in these vertical markets and who have exactly the skills and expertise that our customers need to confidently deploy Compaq's workstations and servers within their organizations."

Value Versus Volume

Compaq's agreements with Avnet Inc. and Pioneer provide mutual benefits which will help all three companies compete in the changing world of high-end computing. By signing on Avnet Inc. and Pioneer, Compaq can leverage these distributors experience in the traditionally RISC/UNIX-based technical and creative markets and the value-added services these companies provide. In return, Avnet Inc. and Pioneer can take advantage of Compaq's understanding of the Windows NT workstation market dynamics and of Compaq's Windows NT leadership in server and desktop computing environments. In addition, Avnet Inc. and Pioneer will have access to innovative channel programs Compaq has developed to provide enhanced profit margins for distributors and resellers of Compaq Professional Workstations.

"Compaq has always been a leader in understanding market dynamics and in moving aggressively to meet the demands of our strategic markets," said David Parsons, Director of Workstation Marketing for North America, Compaq Computer Corp. "The demand we've seen in the evolving Windows NT-based workstation market is the need for a formalized workstation VAR channel where the 'V' stands for 'value-add' rather than 'volume'. We're working to meet this demand by signing on Avnet Inc. and Pioneer, distributors who deliver value in the form of customized services -- such as UNIX-to-NT migration, interoperability and system integration services. These services are vital in making our customers as efficient, and as profitable, as they can be."

"Successfully selling workstations takes years of experience and deep technical expertise to comprehend and fulfill the unique requirements of diverse vertical markets," said Rich Ward, Group President of Avnet Inc.'s Computer Marketing Group. "By working with Avnet Inc., Compaq has demonstrated its commitment to truly meeting these customers needs. Their new channel programs recognize our value-add and make it easy for us to work with them to bring complete, Windows NT-based workstation solutions to our customers."

"Compaq has shown that it understands the needs of workstation users by providing systems designed from the ground up to deliver true workstation performance on an industry-standard platform," said Peter Coleman, Vice President of Sales for Pioneer. "And, they've shown they understand the needs of the channel by developing a business strategy that leverages the value of technically oriented resellers and distributors while enabling us to capitalize on the economics of their own broad-based business model through compelling margin enhancement programs."

UNIX/NT Interoperability

Compaq recently joined with several interoperability software vendors -- including DataFocus, Equilibrium, Hummingbird, Intergraph, Mortice Kern Systems (MKS) and Softway Systems Inc. -- to create an initiative that offers added benefits to distributors. Compaq's interoperability initiative provides tested interoperability solutions combining Compaq Professional Workstations with industry-leading interoperability applications (see related September 9 release). These solutions offer distributors increased opportunities to sell migration services, which are vital to customers migrating to Windows NT environments. In addition, Compaq recently teamed with leading Web application vendors -- including Microsoft, Adobe and NetObjects -- to deliver optimized server and workstation solutions for Web site design, application development, and hosting (see related September 16 release). These solutions provide yet another opportunity for Compaq's distributors to leverage their expertise in vertical market requirements as well as system integration and network services.

New, Value-Focused Strategic Channel Programs

Compaq has developed a set of strategic programs for distributors and resellers to help support customers choosing Windows NT-based Compaq Professional Workstations. For distributors such as Avnet Inc. and Pioneer, Compaq has developed the Channel Solution Provider (CSP) program to assist Compaq-certified, tier-one distributors in recruiting and supporting technical VARs in behalf of Compaq. Through these programs, Compaq works with the distributors to develop business strategies and provides enhanced margin incentives to help them sell Windows NT workstations without sacrificing the high margins that traditionally accompany RISC/UNIX-based workstation sales.

To meet the needs of individual resellers, Compaq created the Workstation Solution Provider (WSP) program. The WSP program was created to recruit and provide certification to Compaq resellers with the application and/or traditional workstation expertise necessary to meet the needs of workstation users migrating to the Windows NT platform. So far, the program is ahead of schedule to meet goals set for this year.

"Compaq is committed to maintaining a leadership position in the Windows NT-based workstation market. We are making the necessary investments to achieve this goal, which includes investments in our channel programs," said Fernander. "We will continue to work with industry-leading distributors and resellers to ensure our customers receive the best workstation products and the highest level of support they need to make their businesses profitable."

Company Backgrounds

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 over a million servers. In 1996, the company reported worldwide sales of $18.1 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.

Headquartered in Great Neck, N.Y., Avnet, Inc. (NYSE:AVT) is a Fortune 500 company with annual sales exceeding $5.2 billion. Avnet, Inc. markets, inventories and adds value to the products of the most prestigious electronic components and computer equipment manufacturers. Pioneer-Standard is a leading distributor of a broad range of industrial electronic components and computer system products supplied by more than 100 manufacturers. Customers include original equipment manufacturers, value-added resellers, research laboratories, government agencies and other organizations throughout North America. Pioneer recorded fiscal year 1997 revenues of $1.5 billion for the period ending March 31, 1997. Additional information about Pioneer and its business partners can be found on the World Wide Web at http://www.pios.com . -0-

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

CONTACT: Compaq Computer Corporation

Gary Frazier, 281-927-8647

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or

Miller/Shandwick Technologies

Sue Vaillancourt, 617-536-0470

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