Compaq Takes Sweeping Price Cuts Across Popular Armada 1100 Family.

HOUSTON--(BUSINESS WIRE)--Jan. 16, 1997--

Prices Now Start at $1,299 (a) SpeedPaq Modem Bundled with Armada

1120 and 1120T Models (b)

In a move to further reinforce the value of its notebook PCs by providing innovative solutions for customers' mobile computing needs, Compaq Computer Corporation (NYSE:CPQ) today lowered its prices on the entire Armada 1100 family, including the new Armada 1130 and 1130T models, to offer the utmost value in Pentium-based color notebook computers in the industry. The company also launched a promotion throughout the U.S. for a SpeedPaq 288 Data/Fax Modem bundled with the purchase of a Compaq Armada 1120 or 1120T notebook PC, for a limited time.

The Armada 1100 notebook products offer unprecedented price/performance, with standard features such as fast Pentium processors, large-capacity hard drives, full-sized keyboards and brilliant color displays. Prices now range from $1,299 for the Armada 1120 to $1,999 for the Armada 1130T.

"The Armada 1100 products are our workhorse notebook computers, offering traditional Compaq quality and reliability and packed with useful innovation," said Jim Schraith, Vice President, Compaq North America. "If you're looking for an affordable, feature-packed notebook PC for everyday applications, the Armada 1100 is your dream computer. And if you're looking for a cost-effective mobile communications tool, this newest offer from Compaq is unbeatable."

The innovative SpeedPaq 288, together with the Compaq Armada 1120 and 1120T models, transforms these notebook computers into productive communications platforms, using either regular or cellular phone lines. The powerful PC Card also works as a fax or modem, providing users easy access to the Internet or their corporate networks.

"The addition of the SpeedPaq 288 responds to our customers' requests for untethered, mobile-centric communications," added Schraith.

The Armada 1100 family products are ideal for individuals, business owners and MIS managers who need a portable PC for word processing and spreadsheet applications, as well as daily communications capabilities via e-mail or the Internet when used with a PC card modem -- like the SpeedPaq 288. With their economical price points and standard business features, medium- and large-sized businesses will also benefit from the Armada 1100 family products for functions like sales- or work-force automation. The new prices of the Armada 1100 products are as follows:

Model         New Price (c)  Old Price     Percent Decrease

Armada 1120     $1,299         $1,499               13%
Armada 1120T    $1,799         $1,999               10%
Armada 1130     $1,599          1,899               16%
Armada 1130T    $1,999         $2,299               13%

Competitive Features at Value Prices

The Armada 1130 and 1130T products feature the 120-MHz Pentium processor, 16-MB of EDO RAM (upgradeable to 48-MB), 1.08-GB hard drives, either a 10.4-inch Dual-Scan color SVGA display or a 10.4-inch color TFT SVGA screen, and 32-bit PCI Local Bus Video and 1-MB of Video RAM.

The Armada 1120 and 1120T models feature the 100-MHz Pentium processor, 8-MB of RAM (expandable to 24-MB), 810-MB hard drives, either a 10.4-inch CSTN or CTFT display, and 32- bit PCI Local Bus Video with 1-MB of Video RAM. All models continue to offer a full-size, 101-key compatible keyboard with a center-mounted optical 19mm trackball. A palm rest and built-in keyboard tilt feet allow for an adjustable typing angle. The notebooks also sport a detachable handle and an easy-to-read, real-time status panel.

Pre-installed software includes Microsoft Windows 95, Netscape Browser and MS Explorer, Microsoft Works, Astound CSE and more. Each model also includes slots for two Type II PC cards or one Type III PC card.

Standard interfaces include enhanced parallel, serial, external VGA, keyboard-pointing device and AC adapter/auto adapter. The notebooks typically have up to three hours battery life when using standard enhanced NiMH (nickel-metal hydride) batteries. All models come with a one-year worldwide limited warranty on parts and labor (d).

SpeedPaq Modem

The Compaq SpeedPaq 288 Data/Fax modem is a 28,000 bps modem that works as a fax or modem on any notebook computer with an industry-standard PCMCIA Type II slot, providing users easy accessibility to any corporate network. The SpeedPaq 288 Data/Fax modem is optimized for mobile customers requiring real-time, landline and wireless access to data, regardless of where they are located. It provides landline communications at up to 115,200 bps with compression, and Compaq's advanced communications software enables customers to effectively and easily manage data, fax and voice over both wireline and wireless connections. SpeedPaq is backed by a comprehensive service and support program, including a five-year worldwide limited warranty (e), which includes 24-hour, seven-days-a-week telephone support, as well as support over CompuServe, QuickFind and PaqFax.

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 more than a 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. -0-

(a) All prices listed are estimated U.S. resale prices. Actual prices may vary. (b) Compaq SpeedPaq 288 Data/Fax modem available with Compaq Armada 1120 and 1120T models only, while supplies last. Free with purchase, for a limited time. (c) All prices listed are estimated U.S. resale prices. Actual prices may vary. (d, e) Certain restrictions and exclusions apply.

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

Nora Hahn

281-514-0484

[e-mail]

or

Miller/Shandwick Technologies

Mike Deshaies

617-536-0470

[e-mail]