New Compaq Deskpro PCs Deliver Greater Value with Significant Enhancements.

HOUSTON--(BUSINESS WIRE)--Feb. 24, 1997--

Compaq business PCs feature Pentium with MMX; 6X PD-CD drive

Following on the heels of significant price reductions across its commercial product line, Compaq Computer Corporation (NYSE: CPQ) today announced eight commercial desktop PCs, incorporating significant new features and enhancements to its award- winning Deskpro family.

Setting the pace for innovation in commercial desktops, Compaq's new Deskpro products provide customers and resellers with the latest technological advances while delivering exceptional levels of quality, serviceability and value for both multimedia applications and overall productivity.

"Compaq continues to provide hallmark desktop computing for customers who require the most reliable products, for buyers who demand great value, and for MIS directors who must have manageable PCs," said Mike Winkler, Senior Vice President and Group General Manager, Compaq PC Products Group.

"Compaq will continue to utilize the best technology and offer the most useful features to create the best value in the industry. In fact, Compaq has been working with Intel on the Pentium II processor, the next generation Pentium Pro processor with MMX technology, and plans to provide it to customers when Intel makes the component available later this year."

Highlights of the new Deskpro models include increased performance and functionality from Intel's Pentium Processor with MMX technology; a new 6X PD-CD optical drive that provides up to 27 percent greater performance over standard drives, and a new standard Intelligent Manageability feature called Info Messenger, a customized electronic mail service that provides customers proactive notification of essential Compaq software updates and technical information via the Internet for better management and maintenance of commercial desktops.

By continuing to provide customers with greater value, including the latest technologies and features, Compaq remains the established market share leader in the commercial PC marketplace. According to Dataquest, Compaq was the worldwide desktop market champion in 1996 for the third year in a row(a).

"Managing the desktop continues to be a critical issue for Lyondell. Top brand name manufacturers, like Compaq, who can deliver the latest technology and outstanding value help us reduce the cost of owning and managing our computing needs," said Randy Lewis, Director of Information Technology, Lyondell Petrochemical, an integrated manufacturer and marketer of petrochemicals and refined petroleum products. "This enables us to not only reduce our overall cost of computing, but provides a competitive advantage in our business operations."

Compaq Deskpro 2000

With Intelligent Manageability features across the full line, the affordable Deskpro 2000 Series incorporates powerful features and functionality at an exceptional value. The new Deskpro 2000 Model 6180/2500/CD, features a 180MHz Pentium Pro processor, 32MB of RAM, a 2.5GB hard drive and CD ROM drive for just $2,180(b). Offering a wide range of powerful Intel Pentium processors, from 133MHz to Pentium Pro 200 MHz, 16 to 32MB of EDO RAM; 1.2GB to 2.5GB SMART E-IDE hard drives and Cirrus Logic and Matrox MGA Millennium PCI graphics. Select Deskpro 2000 models are USB-ready and include an 8X CD-ROM drive.

Compaq Deskpro 4000

Designed for enterprise environments, the Deskpro 4000 Series delivers superior performance in networked environments. Two new models were added to the Deskpro 4000 line, both of which feature Compaq's proven LS-120 drives, with 80 times the storage capacity of regular 1.44MB diskettes, enabling customers to transfer large files onto a single diskette, freeing up hard drive space and making it easier to back up data. The LS-120 is also backwards compatible with 1.44MB and 720KB diskettes. The new Deskpro 4000 models include:

-Deskpro 4000 Model 5200/2500/LS $2,300 -Deskpro 4000 Model 6180/2500/CDS/LS $2,460

The Deskpro 4000 models offer several standard features including Pentium 133MHz to Pentium Pro 200MHz processors, a 10/100 Mbit upgradeable NIC, 16MB to 32MB of EDO DRAM, 1.62 and 2.5GB SMART E-IDE hard drives and Cirrus Logic graphics with 2MB EDO DRAM. The Deskpro 4000 models start at $1,290.

Compaq Deskpro 6000

Two new models of the Deskpro 6000 Series feature Pentium Processors with MMX technology which boosts the performance of MMX-enabled applications and will enhance the performance of traditional applications by 10 to 20 percent. The Deskpro 6000 is designed for the demanding user in a networked environment. With its high-performance design, some new models in the Deskpro 6000 Series also come equipped with a 6X PD-CD drive which provides 650MB of rewriteable storage and reads existing CD-ROM technology.

The new Deskpro 6000 models include:

-Deskpro 6000 Model 5200/2150/PDS $3,270 -Deskpro 6000 Model 6200/4200/PDS $3,895 -Deskpro 6000 Model 5166X/2150/PDS (Minitower) $3,105 -Deskpro 6000 Model 5200X/4200/PDS (Minitower) $3,960 -Deskpro 6000 Model 6200/4200/PDS (Minitower) $4,270

Available with Intel's most powerful processors including MMX, the Deskpro 6000 offers 32 to 64MB EDO RAM, 1.08GB to 4.2GB SMART Ultra SCSI drives, 10/100 Mbit upgradeable NIC, Matrox MGA Millennium graphics with 2MB WRAM standard. The Deskpro 6000 also comes pre-installed with Windows NT 4.0 and industry-leading Intelligent Manageability, making it one of the most fully featured commercial desktops available in the market today.

Additionally, the company today introduced the Compaq 336 ISA Fax Modem which supports the new Deskpro 2000, 4000 and 6000 families and is the ideal communications tool for desktop PC users requiring reliable access to information.

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 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.

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(a)Dataquest

(b)All pricing listed herein is U.S. estimated reseller price. Actual reseller price may vary.

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

Mike Berman

281-514-0484

[e-mail]

OR

Miller/Shandwick Technologies

Kerry Kelly

617-536-0470

[e-mail]