Compaq and Cybersmith Team Up to Showcase Lifestyle Computing Technologies for Consumers.

HOUSTON--(BUSINESS WIRE)--Oct. 24, 1996--

Compaq to Provide Presario PCs for Cybersmith

Internet Cafe 

Expansion in the US

Editors' Summary

-- Compaq Computer Corporation (NYSE: CPQ) has been named exclusive PC provider for Cybersmith's retail expansion plans in the United States.

-- New Cybersmith store in Palo Alto, Calif., will showcase Compaq Presario PCs and other exciting technologies.

As part of an ongoing effort to help consumers experience the lifestyle benefits of technology, Compaq Computer Corporation (NYSE: CPQ) and Cybersmith, Inc., the fast-growing chain of cyber cafes, have teamed up to create opportunities for consumers to explore new technologies. The unique retail chain has named Compaq as its exclusive PC provider for the continued expansion of Cybersmith stores in the United States. Compaq and Cybersmith will work together to provide an innovative experience where consumers enjoy easy access to revolutionary technologies and online Internet exploration opportunities.

"It has been our goal to provide visitors with a forum for exploring the best in consumer technology in a relaxed, comfortable atmosphere," said Jed Smith, Vice President of Cybersmith. "With the wide range of experiences offered at Cybersmith, our customers need an easy-to-use PC with the highest level of performance, features and dependability. Compaq was a natural partner for us."

"The Compaq Presario fits in perfectly with Cybersmith's uniquely casual, learning and exploration-based atmosphere," said Mike Larson, Vice President of Sales and Marketing for Compaq's Consumer Group. "Our emphasis on user-friendly features, multimedia focus and built-in Internet access features makes our Presario products perfect tools for learning, exploration and entertainment."

The newest Cybersmith location, scheduled for an October 29 grand opening in Palo Alto, Calif., will offer visitors a comfortable, hip environment where customers explore the latest technology on their own or with assistance from Cybersmith's highly trained staff of "Cyberguides." Taking a break in "Smitty's Online Cafe" can be combined with browsing through expertly selected collections of the latest technology literature, CD-ROM software and related merchandise, all of which is available for purchase.

The Palo Alto Cybersmith location will feature 30 Compaq Presario PCs as part of 45 technology stations that accommodate up to three people in comfortable booths. Many of the stations will feature 3-D sound domes to maximize the PC entertainment experience. Online stations will feature high-speed T-1 lines to provide the fastest Internet and online connections available. Multimedia and game stations will permit visitors to preview a variety of CD-ROM titles on the Presario's speedy 8X CD-ROM drive and built-in 3-D graphics, making Cybersmith's "Try Before You Buy" a sensible way to purchase lifestyle-oriented software.

All of these opportunities will take place in a 5800 square-foot space located in downtown Palo Alto, at the corner of University Ave. and Florence Street. Cybersmith expects the Palo Alto store to draw more than 10,000 technology enthusiasts and novices each month. Additional Cybersmith stores are planned for Chicago, New York City, Los Angeles and Seattle.

Cybersmith Company Background

Cybersmith is committed to providing understanding, hands-on experience and technological information within an atmosphere of comfort and fun. The store's motto: "Explore, Create, Compete, Connect" points to the new person-to-person, not person-to-machine interaction with computers. Cybersmith is the latest brainchild of Marshall Smith, founder of Paperback Booksmith, Videosmith and Learningsmith stores, and his son Jed Smith who has five years of Silicon Valley experience. Cybersmith currently operates four cafes in Cambridge, Mass., White Plains, N.Y., Boston, Mass., and Palo Alto, Calif. Additional information about Cybersmith may be found at its World Wide Web site at http://www.cybersmith.com.

Compaq 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 approximately 1 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.

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 Cybersmith

Brian Temple, 713-514-0484 Jed Smith, 617/547-8588

[e-mail] [e-mail]

or or

Miller/Shandwick Technologies Cybersmith

Kristi Kovala, 404/653-8779 Jill McAuliff, 415/331-5231

[e-mail] [e-mail]

or

Miller/Shandwick Technologies

Stacy Libby, 415/0962-9550

[e-mail]