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COMPAQ AND CONNER PERIPHERALS AGREE TO STOCK REPURCHASE

 COMPAQ AND CONNER PERIPHERALS AGREE TO STOCK REPURCHASE
 HOUSTON, July 29 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ) and Conner Peripherals, Inc. (NYSE: CNR) today jointly announced that they have reached an agreement under which Conner will repurchase Compaq's equity ownership of Conner common stock.
 The agreement calls for Conner to purchase Compaq's 11.6 million shares of Conner common stock for $20.75 per share, which was the closing price of the stock on the New York Stock Exchange on July 28, 1992. Compaq made an original investment of $6 million in Conner in June 1986 and an additional investment of $6 million in December 1986. Compaq will record a pre-tax gain of approximately $80 million from this transaction.
 "We have always had a strong strategic relationship with Conner, and we fully expect that to continue," said Compaq President and Chief Executive Officer Eckhard Pfeiffer. "As a result of this transaction, Compaq will accelerate its stock repurchase program. This also complements our already strong cash position to support ongoing business strategies."
 Conner Chairman and Chief Executive Officer Finis Conner stated: "We believe that this transaction makes a great deal of sense for both companies. Given our strong financial position, this represents an attractive opportunity for Conner and its shareholders."
 Compaq Computer Corporation is a world leader in the manufacture of PC systems, and desktop, portable, laptop and notebook personal computers. Founded in 1982, the company reported 1991 worldwide revenues of $3.3 billion.
 COMPAQ products are sold and/or supported in more than 70 countries through a network of more than 5,000 Compaq Marketing Partners, including authorized resellers (national chains, franchisors and superstores), specialized resellers, value added resellers (VARs), distributors, network integrators, systems integrators and authorized third-party maintainers. Compaq also offers a broad range of service and support programs, including free technical support through the Customer Support Center, worldwide product warranties and product information on CD-ROM. FOR CUSTOMER SERVICE AND INFORMATION, CALL 800-345-1518.
 Founded in 1986, Conner sells, designs and builds information storage solutions for a wide range of computer applications, including network servers and workstations, desktop, laptop and notebook computers, and the new generation of sub-notebook, pen-based and palm-top systems. The company markets its products worldwide to leading American, European and Asian Original Equipment Manufacturers (OEMs) and distributors. Conner reported 1991 revenues of $1.6 billion.
 -0- 7/29/92
 /CONTACT: Bob Beach or Mike Berman of Compaq Computer Corp., 713-374-0484; or Tony Sapienza or Donna Ruane of Miller Communications, 617-536-0470, for Compaq; or Kevin Burr of Conner Peripherals, 408-456-3134/
 (CPQ CNR) CO: Compaq Computer Corporation; Conner Peripherals, Inc. ST: Texas, California IN: CPR SU:


SH -- NE004 -- 4432 07/29/92 08:48 EDT
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Publication:PR Newswire
Date:Jul 29, 1992
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