Compaq Unveils New `Academic Series' of Deskpro and Armada PC Solutions for Classrooms and Campuses.

HOUSTON--(BUSINESS WIRE)--March 18, 1999--

New Compaq Deskpro EN Series Small Form Factor Optimized for Education

Customers

Advancing its educational strategy to meet increasing customer demands for sophisticated technology, Compaq Computer Corporation (NYSE: CPQ) today introduced the Compaq Academic Series -- the company's new line of PC solutions for U.S. educators, students and administrators.

Built on award-winning Compaq Deskpro desktops and Armada notebooks, the Compaq Academic Series delivers an outstanding combination of powerful PCs, management tools and education-specific software for highly manageable, reliable and affordable offerings for education. Further expanding its family of products for the education market, Compaq also announced that the Deskpro Academic EN Series Small Form Factor joins the Academic Series as a robust, manageable and space-saving PC solution- featuring an optimized design available exclusively to Compaq education customers.

"Students and educators require increased sophistication in computing for real-time information access and broad collaboration. At the same time, administrators are calling for tools that improve the manageability and serviceability of their computing resources," said Gary Staunch, Director of Education, Compaq Computer Corporation. "The Compaq Academic Series represents the next generation of educational computing, offering a unique balance that addresses the needs of teachers, students and administrators alike."

The Compaq Academic Series

The Compaq Academic Series of affordable multimedia desktop and notebook solutions is available in a choice of models and configurations that offer an exceptional combination of technology, flexibility, manageability and multimedia performance.

Ideal for networked campuses and districts, Compaq Academic desktop and notebook systems are network certified for both Microsoft(R) Windows NT(R) and Novell NetWare networks and feature Compaq Intelligent Manageability for improved control and PC management. Compaq Intelligent Manageability - a comprehensive set of tools that support remote configuration and deployment, asset tracking and security, software updates and fault notification and recovery - eliminates the need for a school, district or campus IS manager to travel to multiple sites to perform routine system maintenance.

Compaq Academic Series desktop and notebook solutions include a choice of one of Compaq's 9 LearningPaqs, a compilation of popular educational and desktop security software grouped by subject matter and grade level(1). Compaq Academic Series solutions also include a Compaq three-year limited hardware warranty(2) and are offered at Compaq National Education pricing.

The New Compaq Deskpro EN Series Small Form Factor for Education

Designed specifically for education, Compaq today introduced the new Deskpro Academic EN Series Small Form Factor, an enterprise-class PC available exclusively to the education market as part of the Compaq Academic Series. Ideal when space is tight, the new Compaq Deskpro Academic EN Series Small Form Factor incorporates robust networking, rich multimedia and extensive management capabilities in a form factor that is 36 percent smaller than a conventional desktop PC. These Compaq Deskpro Academic EN Series models provide the same power as most full-sized systems, eliminating the need to compromise space for power. For added classroom convenience, Compaq Deskpro Academic EN Series systems also feature easy-to-access front headphone and microphone jacks.

Compaq Deskpro Academic EN Series PCs are priced starting at $1,279(3) and include a choice of Intel(R) Pentium(R) II or Celeron(TM) processors, an internal speaker, a CD-ROM drive, 10/100 WOL PCI Ethernet and a choice of 15-inch (13.8-inch viewable area) or 17-inch (15.7-inch viewable area) monitor. Educational institutions can choose from the following Deskpro Academic EN Series desktops preinstalled with either Microsoft Windows(R) 95 or Windows 98. Windows NT models are also available:(1)

--Compaq Deskpro Academic EN Series Small Form Factor C400/6400/CDS with a 400 MHz Intel Celeron processor, 32 MB SDRAM, 6.4 GB(4) SMART II hard drive, 24X Max CD-ROM(5). Priced at $1,279(3) with a 15-inch (13.8-inch viewable area) monitor or $1,379(3) with 17-inch (15.7-inch viewable area) monitor.

--Compaq Deskpro Academic EN Series Small Form Factor 6400X/10000/CDS with a 400 MHz Intel Pentium II processor, 64 MB SDRAM, 10 GB(4) SMART II hard drive, 24X Max CD-ROM(5). Priced at $1,499(3) with a 15-inch (13.8-inch viewable area) monitor or $1,599(3) with 17-inch (15.7-inch viewable area) monitor.

The Compaq Deskpro Academic EP Series Solutions

Starting at $1,299(3), the Compaq Deskpro Academic EP Series solutions offer educational institutions enterprise-class power at an exceptional value. These desktop solutions feature Intel Pentium II or Intel Celeron processors, SMART II Ultra ATA hard drives, a 10/100 WOL PCI Ethernet Card, a choice of 15-inch (13.8-inch viewable area) or 17-inch (15.7-inch viewable area) monitor. In addition, a standard 32X MAX CD-ROM(6), 16-bit Sound Blaster-compatible audio, PremierSound PS110 external speakers and a Matrox AGP Graphics Controller provide students and teachers an impressive graphics and multimedia experience. Educational institutions can order Compaq Deskpro Academic EP Series models preinstalled with Microsoft Windows(R) 95 or Windows 98.(1) Windows NT models are also available.

The Compaq Deskpro Academic EP Series solutions offer schools the ultimate in flexibility and expandability. A unique towerable chassis can be converted from a desktop to a minitower and back again, providing the flexibility to modify the computer to adapt to space restrictions when moving systems between learning labs and classrooms. Six expansion slots and five expansion bays provide room to grow as computing needs evolve. Two USB (Universal Serial Bus) ports support fast and easy connection to emerging technologies including today's popular digital cameras.

Educators can choose from among the following Compaq Deskpro Academic EP Series solutions:

--Compaq Deskpro Academic EP Series C400/6400/CDS with a 400 MHz Intel Celeron processor, 64 MB SDRAM, 6.4 GB(4) SMART II hard drive, 32X Max CD-ROM(6). Priced at $1,299(3) with a 15-inch (13.8-inch viewable area) monitor or $1,399(3) with 17-inch (15.7-inch viewable area) monitor.

--Compaq Deskpro Academic EP Series 6350X/10000/CDS with a 350 MHz Intel Pentium II processor, 64 MB SDRAM, 10 GB(4) SMART II hard drive, 32X Max CD-ROM(6). Priced at $1,499(3) with a 15-inch (13.8-inch viewable area) monitor or $1,599(3) with 17-inch (15.7-inch viewable area) monitor.

The Compaq Armada Academic Series

Offering an exceptional blend of manageability and portability, the Compaq Armada Academic notebook solutions are ideal for a wide range of student, educator and administrator needs. From supporting presentations to serving as the key component of a comprehensive networked learning environment, the multimedia notebooks provide desktop power wherever education takes place.

Educators can choose from among the following Compaq Armada Academic solutions preinstalled with either Windows 98 or Windows NT(1):

--Compaq Armada Academic 1500c. This integrated, affordable notebook features a choice of 266 MHz or 300 MHz Intel Celeron processors, a 12.1 CSTN or CTFT (800 x 600) screen, 32 MB memory, 4.0 GB(4) SMART hard drive, 24X Max CD-ROM(5), 56K V.90 integrated modem(7) and a NiMH battery. Priced at $1,694(3) with a 266 MHz Intel Celeron processor or $1,994(3) with a 300 MHz Intel Celeron processor.

--Compaq Armada Academic 1750. Offering students and teachers an enhanced-durability platform with its spill-resistant keyboard and shock absorbent hard drive, this all-in-one notebook combines the latest technology with uncompromising value. Priced at $2,794(3), the Armada Academic 1750 features a 300 MHz Intel Pentium II processor, 13.3-inch CTFT (1024 x 768) screen, 64 MB RAM, 4.0 GB(4) SMART hard drive, AGP graphics, 24X Max CD-ROM(5), 56K V.90 integrated modem(7) and a long-lasting Li-Ion battery.

The Compaq Armada Academic computing options address the growing need of educators to incorporate portable technology into schools and are an integral part of the Compaq Notebook Network program. The Notebook Network program offers a unique suite of products and services to assist U.S. K-12 schools and higher education institutions in planning and implementing notebook computing initiatives. Designed to help educators create teaching and learning programs for the classroom and beyond, the Compaq Notebook Network program offers one source for the products and services that address each stage of an anytime, anywhere learning program.

Availability

Compaq Academic desktop and notebook systems are available immediately. U.S. educational institutions may order Compaq education solutions directly from Compaq or locate their nearest Compaq Certified Education Partner (CEP) by calling 1-800-88-TEACH. Compaq's Education Online Store (www.compaq.com/education) offers educators a fast and efficient tool for developing price quotes and placing and tracking orders via the Internet. College students may purchase Compaq Deskpro Academic and Armada Academic solutions through numerous campus bookstores. Compaq ships products purchased by schools at no charge.

Compaq's comprehensive education solutions include a complete suite of PC, server and network products as well as technology planning and professional development programs including Compaq advanCE, a broad set of courses that help teachers understand, use and promote key technologies, and Compaq TechBuilder, a technology planning and assessment tool designed to help schools plan for and understand how best to use technology. More information about Compaq in education may be found at www.compaq.com/education.

Company Background

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

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 are available at http://www.compaq.com.

Compaq, Registered U.S. Patent and Trademark Office. Compaq Deskpro and Compaq Armada are trademarks of Compaq Computer Corporation. Microsoft, Windows, Windows NT are either trademarks or registered trademarks of Microsoft Corporation. Intel, Pentium, Celeron are either trademarks or registered trademarks of Intel Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

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--1 Availability of individual Compaq LearningPaqs may vary based
on operating system.

--2 Certain restrictions and exclusions apply. Call 1-800-88-TEACH
for details.

--3 All prices shown are Compaq National Education prices. Pricing
does not include shipping and taxes. Reseller prices may vary.
Warranty reflects hardware prices.

--4 For hard drives, GB = billion bytes.

--5 24X MAX CD-ROM drive data transfer rates may vary from 1500 to
3600Kbps.

--6 32X MAX CD-ROM drive data transfer rates may vary from 1,200 to
4,800Kbps.

--7 Maximum achievable download transmission rates are currently
unknown, may not reach 56Kbps and will vary with line conditions.