Compaq and Seagate Software Sign Storage Agreement.

HOUSTON--(BUSINESS WIRE)--Sept. 30, 1997--

Joint Storage Management Development and Distribution Agreement

Demonstrates Compaq's Open Vendor Strategy

Compaq Computer Corporation (NYSE:CPQ), the world's leading server vendor and the world's second largest supplier of multi-user storage systems(a), today announced a storage management development agreement with Seagate Software (NASDAQ:SEG), the leading provider of storage management solutions for Microsoft Windows NT Server and Windows NT Workstation(b). The new alliance calls for the coordinated development, marketing and delivery of enterprise storage management technology.

Enhanced Customer Benefits

The focus of the agreement is to provide substantial new benefits to Compaq's and Seagate Software's mutual customers. Joint engineering efforts will enable the companies to provide customers with stable, finely tuned systems that meet performance, reliability, and quality standards that customers have come to expect. In addition, the companies will provide thorough integration testing of hardware and software to ensure immediate and reliable operation of the solution.

"This new alliance further demonstrates Compaq's strong commitment to partnering efforts that retain our dedication to open industry standards while at the same time offering customers high confidence through well integrated solutions," said Darren Thomas, Vice President, Enterprise Storage, Compaq Computer Corporation. "Compaq and Seagate Software have the technical resources and market endorsement required to develop and deliver intelligent storage management solutions to meet today's complex enterprise computing challenges."

This alliance will ensure customers receive the complete hardware and software storage solution they need--when they need it--through a coordinated distribution and support plan that is in the process of being developed. Compaq and Seagate Software will work more closely and effectively with the distribution channel in order to provide customers with an industry-standard choice ideally suited to their business needs and at a lower total cost of ownership.

"Seagate Software's leading position in Windows NT and prominent position in NetWare storage management, combined with Compaq's leadership in server and storage technology innovation, will clearly deliver powerful benefits to Compaq customers," said Terry Cunningham, President and COO, Seagate Software. "Customers standardizing on Seagate Software's award-winning products and solutions now can enjoy an unprecedented level of product stability through coordinated development, marketing and delivery with Compaq."

Compaq, Seagate Software and Seagate Technology, as leading innovators, will continue to develop powerful solutions designed to further increase the performance, manageability, productivity and reliability of emerging storage technologies such as Fibre Channel and storage area networking.

Company Backgrounds

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 over a million servers. In 1996, the company reported worldwide sales of $18.1 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.

Seagate Software, a subsidiary of Seagate Technology, Inc., develops tools and applications for Business Intelligence and systems and storage management that enhance the availability, access and analysis of information. Its award-winning solutions include Seagate Backup Exec, Seagate Crystal Reports, Seagate Crystal Info, Seagate Holos and Seagate WinINSTALL. Seagate Software has established strategic relationships with Microsoft, Novell, IBM, Hewlett-Packard Company, Informix, Oracle, Netscape, PeopleSoft and other industry leaders, and markets its products worldwide, through distributors, value-added resellers, systems integrators, retailers, and OEMs. Seagate Software's home page address on the World Wide Web is http://www.seagatesoftware.com . -0-

(a) Source for leading server vendor: IDC 1Q97 PC Server Market

Update. Source for storage vendor standing: IDC, "1997 Disk

Storage Subsystems Forecast and Market Review."

(b) As noted in the IDC report, "Systems Management Software 1997."

Compaq, Registered U.S. Patent and Trademark Office. Seagate Technology, Seagate and Seagate Software are trademarks of Seagate Technology, Inc. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

CONTACT: Compaq Computer Corporation

Jim Cortese 281-514-0484

[e-mail]

or

Miller/Shandwick Technologies

Helen Dragoon 617-351-4113

[e-mail]