Compaq and Intel Announce New Agreements in Engineering and Marketing --
Companies Agree to Cross-License Patents; Compaq Joins Intel Inside
Campaign

HOUSTON and SANTA CLARA, January 18, 1996 -- Compaq Computer Corp. (NYSE:
CPQ), the world leader in personal computer shipments and Pentium-based
PCs, and Intel Corporation (INTC), the world's leading microprocessor
manufacturer, today announced agreements spanning the breadth of the
industry from home computing to the rapidly growing enterprise computing
marketplace.

The companies have entered into a ten-year, broad patent cross-licensing
agreement under which they have agreed to a worldwide, non-exclusive
patent license. In addition, Compaq has entered the Intel Inside program
and will use the Intel Inside logo in its products, advertising and
packaging. Financial terms of the agreements were not disclosed.

"Compaq has consistently designed significant technical advances into its
products, and this agreement endorses the value of our contributions,"
said John T. Rose, senior vice president and general manager, Commercial
Desktop Division. "Our two companies represent the leading brands in our
respective fields, and together we will continue to deliver exciting new
products into the world of computing."

"Since both companies have strong patent portfolios, our agreement provides
an open environment that allows us to continue to deliver innovative
products to our respective customers," said Paul Otellini, senior vice
president of Intel World Wide Sales.

"In addition, we are very happy that Compaq is returning to the Intel
Inside program. Intel has worked very hard to ensure that this ingredient
marketing/promotional program is successful for our customers."

Today's announcement marks Compaq's re-entry into the Intel Inside program.
Compaq will once again incorporate the Intel Inside logo into its product
advertising and product packaging.

"With the continued growth of the Compaq brand during the last two years,
we believe we've selected the right time to once again join forces with
the Intel Inside program," Rose noted. "As Intel's largest microprocessor
customer, our support for Intel Inside will further strengthen our
relationship and the Compaq brand."

COMPANY BACKGROUND

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs, servers and options.
Founded in 1982, the company reported 1994 worldwide sales of $10.9
billion. Compaq products are sold and supported in more than 100 countries
throughout the world. Compaq also sells products directly to customers
through Compaq Direct Plus at 1-800-888-5858. Compaq provides 24-hour
customer support and can be reached through the Compaq forums on America
On-Line, CompuServe, Internet (http://www.compaq.com), and Prodigy, or by
calling 1-800-345-1518.

Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer networking and communications products.
 
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