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COMPAQ TO REPORT RECORD THIRD QUARTER REVENUES, SHIPMENTS; ANNOUNCES WORK FORCE REDUCTION PLANS

 COMPAQ TO REPORT RECORD THIRD QUARTER REVENUES, SHIPMENTS;
 ANNOUNCES WORK FORCE REDUCTION PLANS
 HOUSTON, Oct. 8 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ) today said that it will announce record revenues and unit shipments for the just-completed third quarter when financial data is released on October 20. The company said that operating earnings for the third quarter are comfortably above second quarter 1992 levels. "Compaq is committed to be the industry leader in PC technologies, cost competitiveness, and customer support," said Eckhard Pfeiffer, president and chief executive officer, Compaq Computer Corporation.
 "In addition to the successes of our new products and programs, Compaq has made great strides in achieving substantially improved product and operating cost efficiencies," said Pfeiffer. "However, in anticipation of a continuing intensely-competitive market environment, Compaq is taking steps to further reduce costs and will be reducing our worldwide work force by approximately 1,000 employees over the next several months."
 Compaq said the work force reduction will begin with a layoff of approximately 700 employees during the month of October. "Wherever possible we are trying to use work force balancing efforts to meet our strategic needs of expanding manufacturing, increasing geographical development, enhancing customer service and support and developing new distribution channels. However, work force balancing has not provided the complete answer," said Pfeiffer. Released employees will be offered a severance package and outplacement support.
 Compaq said that it shipped an unprecedented number of computers during the third quarter. Because of continuing demand the company entered the fourth quarter with a strong backlog. "We have acquired significant new supplies of needed parts and materials, and coupled with our continuing production ramp we should meet current demand on most of our products during the fourth quarter," said Pfeiffer.
 Restructuring and other special charges totaling approximately $85 million, which include separation costs associated with the reduction in employees, writedown of property, plant and equipment and a loss on early retirement of long-term debt, will be reflected in third quarter financial results. These charges are offset by a third quarter gain of approximately $86 million on the sale of the company's equity interest in Conner Peripherals.
 Compaq Computer Corporation is a world leader in the manufacture of PC systems, and desktop, portable, laptop and notebook personal computers and network laser printers. Founded in 1982, Compaq reported 1991 worldwide revenues of $3.3 billion.
 COMPAQ products are sold and supported in more than 85 countries through a network of more than 8,300 Compaq Marketing Partners, including authorized resellers (national chains, franchisors, retail outlets 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.
 COMPAQ, SYSTEMPRO, DESKPRO, Registered U.S. Patent and Trademark
Office. ProSignia, ProLiant, QVision, COMPAQ INSIGHT Manager, trademarks of Compaq Computer Corporation. NetWare is a trademark of Novel, Inc. Windows is a trademark of Microsoft Corp. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.
 -0- 10/8/92
 /CONTACT: Bob Beach, or John Sweney or Mike Berman, or Yvonne Donaldson, or Hedy Baker, or Nora Hahn, or Linda Parsons, 713-374-0484 all of Compaq Computer Corporation, or Tony Sapienza or, Linda Pendergast both of Miller Communications, 617-536-0470, or Tom Pearson of Pearson Communications, (broadcast media) 215-644-4420, all for Compaq Computer Corporation/
 (CPQ) CO: Compaq Computer Corporation ST: Texas IN: CPR SU: ERN


LD -- NY006 -- 7658 10/07/92 19:30 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Oct 7, 1992
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