Compaq introduces first education all-in-one Presario ES to lead back-to-school line up; New PC design, exclusive software offering extend Compaq's reach into education market.

HOUSTON--(BUSINESS WIRE)--Aug. 27, 1996--Compaq Computer Corp. (NYSE:CPQ) today unveiled its most innovative multimedia PC for the education market with the introduction of a new space-saving, all-in-one Presario ES that combines the monitor with the computer in one convenient unit.

Compaq also announced an exclusive agreement with Roger Wagner Publishing, Inc., under which the Presario ES family will become the only Windows-based PC line sold standard with HyperStudio, the leading authoring tool used by students and educators to create, design and share multimedia projects and presentations.

In addition to the new Presario ES all-in-one PC, Compaq's back-to-school line up will include the newest traditional desktop Presario ES, a powerful PC with an attractive new user-friendly design. Rounding out the Fall offering is Compaq's full series of high-performance networking, portable, desktop and server families that comprise the industry's most comprehensive selection for K-12 and higher education. With industry-leading products and services, including its new flexible financing program, Compaq continues to enable educational institutions to acquire and manage solutions that are reliable, easy-to-use, price-competitive, upgradable, and backed by outstanding warranty and service and support programs.

"The use of technology has tremendous benefits for everyone involved in education, from the student in the reading lab, to the teacher preparing lesson plans, to the administrator managing a district's resources," said Sue Collins, Director of Education, Compaq Computer Corporation. "Compaq is committed to offering the industry's broadest set of solutions to enable schools, colleges and universities to take advantage of the capabilities technology provides. With our new products, we've combined innovation and simplicity to provide educators useful technology today and a platform to achieve tomorrow's vision.

The Full-Featured Presario ES Line

Starting at just $1,999 (a), the user-friendly, convenient all-in-one Compaq Presario 4406ES is an ideal choice for students and teachers requiring powerful functionality in a limited space -- such as a classroom or dorm room. The seamless all-in-one design has a large 15-inch (13.8-inch viewable) monitor built in, and virtually eliminates back cables, reduces space requirements and is a cinch to set-up. Unique to its design are new Easy Access Buttons that allow students quick control of the audio CD player. With the Presario ES' new ease-of-use features, students can quickly engage in "hands-on" activities, enabling them to discover new worlds.

In addition to the Easy Access Buttons is a special Compaq SmartQ Button that provides educators with an easy way to switch the "curriculum" of the PC between students or classes. The SmartQ Button enables teachers to configure up to eight customized work spaces for each class and provides immediate access to on-screen technical reference and help information. For example, a science page may include quick access to Britannica On-line or the NASA Home Page, while a thesaurus and dictionary would be readily available in the English work space.

The Presario 4406ES brings to life sights and sounds from around the world with the latest in audio and video technology, including full-motion MPEG video, Wavetable sound, and integrated JBL Pro stereo speakers, providing outstanding video quality plus audio performance that rivals the sound quality of today's home hi-fi stereo systems. With Compaq's unmatched multimedia capabilities, a student can click on the mouse to experience the jungles of Africa and even to hear the roars of a ferocious lion come alive.

The Presario 4406ES comes standard with a 120 MHz Pentium processor, 1.2 GB hard-drive, 16 MB RAM, 6X CD-ROM, Windows 95 and is network certified for Novell networks. With each Presario 4406ES, customers select one of Compaq's LearningPaqs -- a collection of curriculum-enhancing educational software grouped by subject matter and grade level. Equipped with Compaq's Netelligent 10 Mbps/100 Mbps Ethernet Controller, the Presario 4406ES is easy to install into networked environments and can easily upgrade to Fast Ethernet.

Like the Compaq Presario 4406ES all-in-one, the Presario 4104ES brings the realistic sights and sounds of multimedia to the classroom and provides easy-to-use, resource-packed and network-ready systems for users looking for a traditional desktop PC configuration. Accommodating different learning and teaching styles, the Presario 4104ES offers industry-leading tools that encourage creativity and collaboration in the classroom and beyond.

A single push of the Compaq Presario 4104ES' new, specially-designed sleep button transitions the machine to a quiet energy-saving mode or powers it up instantly. Certified for Novell networks, the Presario 4104ES comes with a 133 MHz Pentium processor, 16 MB RAM, a 1.6 GB hard drive, a Compaq Netelligent 10 Mbps/100 Mbps Ethernet Controller, 6X CD-ROM, full-audio capability, and a choice from Compaq's LearningPaq Collection of educational software. Starting at $1,999, the Presario 4104ES includes the choice of a 14-inch (12.9-inch viewable) or 15-inch (13.4-inch viewable) multimedia monitor, featuring the latest in JBL Pro audio speakers and visual technology. With Wavetable and full-motion MPEG video, the Presario 4104ES enables students and teachers to take advantage of top-quality sound and video to enhance the learning experience.

Both the Presario 4406ES and the 4104ES are backed by Compaq's award-winning service and support programs. For education, the Presario ES line features a three-year limited warranty with three-years parts and one-year on-site labor.(b) The Presario 1410 and 1510 stand-alone monitors come with a one-year limited warranty, covering one-year parts and carry-in labor with 90 days on-site labor.(b)

Compaq LearningPaq Collection

With each Presario ES, customers select one of the Compaq LearningPaqs, a collection of the industry's leading software CDs from top education software developers, grouped together by subject matter and grade level. The LearningPaq Collection for schools offers more than 70 different CD-ROM titles grouped into 12 sets in the areas of math, science, language arts, social studies, the Internet, higher education and general and reference materials.

HyperStudio

With today's announcement, Compaq's Presario ES family becomes the first Windows-based PC line to ship standard with HyperStudio -- the number one multimedia authoring tool. Under a landmark agreement with Roger Wagner Publishing, Inc., Compaq will provide the HyperStudio CD within each LearningPaq, providing students and educators the environment that lets them capture images digitally, integrate Internet pages into presentations and add any multimedia element in under 60 seconds. Through this exclusive bundle, schools now have a turnkey package that combines Compaq's high-performance multimedia technology with HyperStudio's ease-of-use, enabling the production of state-of-the-art multimedia projects for the classroom or to share across the Internet.

The Industry's Broadest Back-To-School Package

Compaq offers the education market the broadest suite of computer products and services available to date. To facilitate schools' acquisition of such technology, Compaq recently launched the Compaq EduFlex Finance Program, offering both short- and long-term leasing options to provide a wide variety of financing and product refreshment terms. Through this program, educators have increased control in managing their funds, both by maximizing their purchasing power and by structuring financial schedules that level payments across the budget years.

Compaq's recently redesigned Deskpro family offers powerful desktops that provide educational organizations the freedom to use the systems for different activities from year to year. The Compaq Deskpro 2000 provides an ideal platform -- starting at $1,069(c) -- for administrative or student applications in schools that require a stand-alone PC. The Deskpro 4000, a network-ready, all-purpose PC, offers networking innovation to provide students faster access to data, whether it resides in the MathLab or on the Internet. The high-performance, networked Deskpro 6000 provides the answer for colleges and universities seeking a system to support sophisticated applications such as graphic design, CAD/CAM programming, engineering or industrial design. Providing educators a way to better manage technology resources, the Deskpro 4000 and 6000 PCs incorporate innovative "Intelligent Manageability" features that make them easier to inventory, troubleshoot and protect across a school district or campus.

Compaq's portable PCs, including the Compaq Armada family and Compaq LTE 5000 family, open new opportunities for both educators and students. Teachers are able to develop class materials at home, K-12 students can check portables out of the school library to do homework, while college students can use laptops for everything from taking notes in class to conducting research using the Internet. Launched in June, the Compaq Armada family includes the Armada 1100, an exceptionally priced, easy-to-use portable computer. With its innovative flexible design, the Armada 4100 is able to transform from a slimline notebook to a standard configuration, multimedia powerhouse, for teachers, professors and college students who require a sophisticated, powerful notebook to develop multimedia or other complex materials while away from school or campus.

Developing a strong foundation to support connected learning activities is an important component of educational technology plans. To support such an infrastructure, Compaq offers the ProSignia family of affordable servers and the ProLiant family of reliable, easy-to- manage, high-performance servers. Both come standard with today's most popular Internet server capabilities for schools running large campus-wide networks as well as those institutions which provide distance learning opportunities. In addition, Compaq recently launched its Netelligent product line and, through partnerships with other leading companies such as Cisco Systems, is delivering the computer industry's first integration of leading networking technology into an industry-standard computing platform, connecting schools and institutions to the outside world.

Company Background

Compaq is a leading provider of PCs and servers to the education marketplace. The Company partners with independent software providers and leading education resellers nationwide to supply educators and students in K-12 and higher education institutions with complete PC solutions. Customers can call 1-800-88-TEACH to locate a Certified Education Partner or to obtain help choosing the Compaq products that best suit the needs of their schools. In addition, information on Compaq's education program is available by accessing Compaq s Web site.

Compaq Computer Corporation, a Fortune 100 company and the world's largest supplier of personal computers, delivers useful innovation through products that network people with information. 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. In 1995, the company reported worldwide sales of $14.8 billion. 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.

-0- (a) All prices listed herein are estimated; actual prices may vary (b) Certain exceptions and exclusions apply (c) Monitor not included

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

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