Compaq Unveils Scalable Performance of New Professional Workstation SP700.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 29, 1998--

New Workstation with Pentium(R) II Xeon(tm) Processor Sports Next Generation of Compaq's Highly Parallel System Architecture

Compaq Computer Corporation (NYSE:CPQ), a worldwide leader in Intel Architecture Windows NT(R)-based workstations, announced worldwide today the new Professional Workstation SP700, the inaugural product in Compaq's new "Scalable Performance" line of Professional Workstations. The new SP line of workstations is designed to deliver exceptional performance through Intel's Pentium(R) II Xeon(tm) processors and Compaq's innovative next-generation Highly Parallel System Architecture to run technical and creative professionals' demanding applications at speeds previously available only on proprietary RISC/Unix workstations.

In addition to supporting up to two Pentium II Xeon processors at 400MHz with full-speed Level 2 cache, the Professional Workstation SP700's industry-standard, next-generation Highly Parallel System Architecture delivers unmatched workstation-level features, including support for up to 4 GB of 100 MHz ECC SDRAM. The Highly Parallel System Architecture represents Compaq's approach to designing products that provide maximum memory and I/O bandwidth and fast throughput to ensure the highest levels of applications performance on a common industry architecture.

For example, the Compaq SP700 is equipped with two high-speed memory buses to process memory requirements in parallel. In addition, dual PCI buses, dual-channel SCSI support and optimized multi-processing capabilities all work together to ensure key subsystems have access to critical system resources when they need it. This next generation architecture builds on the performance advantages delivered by its predecessor which was used in the Compaq Professional Workstation 5100, 6000, and 8000.

"The Professional Workstation SP700 demonstrates Compaq's workstation performance leadership with Intel's Pentium II Xeon processor," said Les Crudele, Vice President and General Manager of Compaq's Workstation Division. "With our next-generation Highly Parallel System Architecture, Compaq delivers unmatched levels of ECC memory, large high-speed hard drives, dual-channel SCSI, robust 2D and 3D graphics and the internal bandwidth to keep these subsystems running at their peak performance. What this means to customers is the ability to design larger, more complex models, add more realism to 3D graphics and digital video effects, run more complicated simulations and analyses and design more dense circuitry - without bringing the workstation to a grinding halt. The SP700 thrives in these demanding, compute-intensive environments, delivering levels of performance never seen before on a Windows NT-based workstation."

"The Compaq Professional Workstation SP700 based on the new Pentium II Xeon processor addresses the demanding performance requirements of the workstation computing environment," said Pat Gelsinger, vice president and general manager, Intel Business Products Group. "With the Pentium II Xeon processor and its Highly Parallel System Architecture, Compaq delivers excellent scalability, performance and investment headroom for the future."

"The Professional Workstation SP700 is true to its name in delivering the 'scalable performance' that professionals in the technical engineering and creative design fields have come to expect from high-performance workstations," said Tom Copeland, Director, Workstation Research at International Data Corporation. "With the Pentium II Xeon processor, Intel has redirected its focus on the high end of the Windows NT Workstation market, and it's not surprising that Compaq is right in the forefront. The combination of Intel's new Pentium II Xeon processors and Compaq's latest high-bandwidth architecture deliver a very attractive workstation solution to the market."

New Product Line Strategy

The Compaq Professional Workstation SP700 is the latest product showcasing Compaq's new multi-line strategy, a strategy specifically designed to offer customers maximum flexibility to choose a workstation solution based on the level of price/performance and features required. These new lines include the new Compaq Professional Workstation AP, SP and XP families.

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--   AP. The Compaq AP line provides an optimum balance of price and
     performance for users seeking the utmost in value from their
     workstation solution. The AP400 (see related June 8, 1998
     release), the first product introduced in this lineup, is already
     shipping in volume.
--   SP. The SP line of products, which is designed for users
     requiring uncompromising levels of scalability and performance to
     run demanding applications, complements Compaq's Affordable
     Performance (AP) line of products.
--   XP. Users requiring the highest levels of application performance
     will be able to choose from Compaq's new Extreme Performance (XP)
     line of products. With an extremely high level of performance,
     coupled with an overall architecture tuned for speed and maximum
     throughput, Compaq's XP line of products will be available later
     this year.

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Availability

The Compaq Professional Workstation SP700 will be available in the third quarter of 1998. Pricing and configuration information will be available at that time. For more information on Compaq Professional Workstations, visit the following URL on the World Wide Web: http://www.compaq.com/products/workstations/index.html.

Company Background

Founded in 1982, Compaq Computer Corporation is a Fortune Global 200 company. Compaq is the second largest computer company in the world and the largest global supplier of personal computers. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq sells and supports its products in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are on the World Wide Web at http://www.compaq.com and are available by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

Compaq, Registered U.S. Patent and Trademark Office. Intel and Pentium are registered trademarks and Xeon is a trademark of Intel Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

    CONTACT: Compaq Computer Corporation
              Gary Frazier, 281/514-0484
              [e-mail]
              OR
              Miller/Shandwick Technologies
              Sue Vaillancourt, 617/536-0470
              [e-mail]