Compaq Unveils Strategy For Gigabit Computing.

HOUSTON--(BUSINESS WIRE)--March 30, 1998--

Company's First Enterprise Gigabit Switches Solve Customer

Bandwidth Constraints, Provide Wire Speed Routing

and Offer Sophisticated Quality of Service

Editors' Summary -- Compaq 5411 Enterprise Gigabit Switch - High-end eight-port 10/100Base-TX and three-port Gigabit Ethernet switch. --Compaq 5422 Enterprise Gigabit Switch - High-end 16-port 10/100Base-TX and six-port Gigabit Ethernet switch.

Compaq Computer Corporation (NYSE:CPQ) today entered the Gigabit computing market, unveiling its first enterprise Gigabit networking products, the Compaq 5411 and 5422 Enterprise Gigabit Ethernet Switches. These switches are ideal for enterprise customers who have a specific need for a complex backbone with significant connectivity, increased network reliability, and applications requiring a guaranteed level of performance. Customers now have the foundation to build a solid Gigabit computing solution, enabling them to construct a complete desk-to-server environment and helping them solve issues associated with high-end business applications.

Compaq's comprehensive Gigabit computing strategy combines high-performance servers and professional workstations,ply Gigabit computing solutions that fulfill their high-speed, interactive computing needs.

Moving toward its mission of becoming one of the world's top three computer companies by the year 2000, Compaq's Gigabit solutions strengthen the company's commitment of empowering customers to maximize the full potential of their networked computers.

"Compaq's network-centric approach to Gigabit computing offers benefits no other networking vendor can match," said William (B.J.) Johnson, Vice President, Networking Products Division, Compaq Computer Corporation. "Our Gigabit products provide robust solutions. They combine leading performance with true Layer 3 routing and a comprehensive quality of service that compares favorably with other LAN technologies. Most importantly, when combined with Compaq's leadership in servers and desktops and other computing products, they create synergistic solutions, instead of the network-only solutions other vendors provide."

"We feel that the Compaq 5411 would be a strategic fit for our environment and are looking to use it in numerous wiring closets throughout the city," said Michael Sherwood, IT Director for the City of Oceanside, CA, one of Compaq's key customers. We purposely attempted to overload the switch, but it continued to operate without any problems and the resulting performance was excellent."

Compaq Enterprise Gigabit Switches-Redefining the Network

As the first set of products supporting Compaq's Gigabit computing strategy, the Compaq 5411 and 5422 switches serve a wide range of networking needs. These high-performance switches provide customers ease of use, outstanding bandwidth management and high availability. Additionally, growing corporate network customers concerned with future bandwidth requirements can use these products to meet current needs, while future-proofing their systems and preserving their existing network infrastructure.

The Compaq 5411 and 5422 include fault-tolerant features, redundant power support and port bonding with hunt groups. A redundant Gigabit Ethernet port on the 5411 provides instant fail-over in case a network connection is lost, providing customers with another layer of network reliability.

Flexibility features, such as hot-swappable Gigabit Interface Connector (GBIC) modules in the 5411 allow customers to conveniently install support for 1000Base-SX or 1000Base-LX as cabling needs change.

"Compaq's Gigabit computing strategy is clearly focused upon the real challenges that IT managers face in effectively blending high-speed computing and high-speed networking," said John Morency of Renaissance Worldwide, a global IT consulting organization. "These issues are concerned with the here and now -- getting the best performance from their most important business applications, such as SAP and PeopleSoft, while still ensuring strong network performance to effectively support other business needs, such as World Wide Web usage, e-mail connectivity and intranet access."

Bandwidth Management

As corporations continue to grow, bandwidth requirements will continue to increase. Because of the Gigabit capacity of the Compaq 5411 and 5422 switches, customers' immediate bandwidth challenges are solved. The IP routing functionality also provides additional network performance enhancements. Customers can leverage the sophisticated quality of service features to further streamline their networks when needed. These features increase the effective life-cycle of Gigabit Ethernet and protects the customers' investment in this technology.

Integrated Management

For ease of management, Compaq Networking Management Software(A) (CNMS) is included with the switches and makes installation and monitoring easier. SNMP, TELNET and Web-based management are provided for more direct, hands-on management and configuration. Compaq Insight Manager (CIM) enables users to manage Compaq servers and workstations and is included with the Gigabit switches and all Compaq networking products. Moving forward, Compaq will continue the integration of CIM and CNMS functionality, making it easier for customers to manage all Compaq products from one platform.

Price, Availability and Warranty

The Compaq Enterprise Gigabit Switches are now available worldwide and are priced as follows: -0-

Product                                              Price(B)

Compaq 5411 Enterprise Gigabit Switch                $18,040

Compaq 5422 Enterprise Gigabit Switch                $23,710

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All models are covered by a three-year limited warranty. For additional options and information, please refer to Compaq's networking Web site at: http://www.compaq.com/products/networking/index.html

Technical support is provided through Compaq Technical Support Centers worldwide. Service is provided through resellers and VARs on a local, regional, or global basis.

Company Background

Founded in 1982, Compaq Computer Corporation, a Fortune 100 company, is a global information technology company. Compaq is the fifth largest computer company in the world and the largest global supplier of personal computers. With worldwide sales of $24.6 billion in 1997, 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 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 in North America. Product information and North America reseller locations can be obtained by calling 1-800-345-1518.

Compaq North America is headquartered in Houston, Texas. Its products and services are sold and supported through a network of more than 25,000 commercial and consumer marketing partners across the United States and Canada.

Historical financial results have been restated to reflect the pooling of Tandem.

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(A) hhtp://www.compaq.com/products/networking/software/cnms/index.html (B) All prices are estimated U.S. street prices. Reseller prices will vary.

Compaq, Proliant and Prosignia 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

Cherry Kinlaw, 281-514-0484

[e-mail]

OR

Miller/Shandwick Technologies

Nicole Medgin, 650-596-5800

[e-mail]