Compaq Delivers Breakthrough Network Storage and Backup Products for the
Distributed Enterprise -- New Disk Array Controller and Tape Array Offer
Increased Data Availability, Storage Management and Performance

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EDITOR'S SUMMARY

COMPAQ TODAY ANNOUNCED:

* Compaq SMART-2 Array Controller -- providing on-lne caacity expansion and
enhanced data availability, storage management and performance for network
data;

* Compaq 15/30-GB DLT Tape Drive -- providing the necessary reliability,
capacity and performance required to back up today's high-capacity
application servers;

* Compaq DLT Tape Array -- a high-performance backup solution, dramatically
reducing backup time and leveraging the reliability and speed of
disk-based RAID technology for tape backup;

* Price reductions on processor boards, tape drives, hard drives and
systems.
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HOUSTON, February 5, 1996 - Today, Compaq Computer Corporation (NYSE:CPQ),
the world's leading supplier of industry-standard servers1 and the world
leader in LAN storage and LAN RAID (Redundant Array of Inexpensive Disks)
storage2, improved the ability of network administrators around the world
to keep business-critical, distributed enterprise systems data continually
available. Compaq also significantly reduced the time required to backup
vast amounts (hundreds of gigabytes) of business-critical data, while
improving back up reliability through RAID 5 technology and allowing for
maximum flexibility in restore options. These significant improvements
were made possible by three products announced today: the Compaq SMART-2
Array Controller, the Compaq DLT Tape Array and the Compaq 15/30 DLT Tape
Drive. Compaq also announced price reductions of up to 37 percent on
various option products. Compaq refreshed its entire server product line,
focusing on processor performance, I/O performance and system and data
availability, and reduced prices up to 16 percent across its entire server
line.

"Our strategy for delivering solutions for the distributed enterprise
includes a clear focus on delivering leadership products, integrating
industry-leading software with our products and increasing the
manageability of our solutions," said Gene Austin, vice president of
marketing, Compaq Systems Division. "Today's announcement does just that.
Our new LAN storage and backup products simplify the management of
critical network administration tasks, raise the performance standard for
this product category, increase the availability of critical data, and set
new levels of price/performance for the industry."

NEW SMART-2 ARRAY CONTROLLER SETS NEW LEVELS FOR DATA ACCESS

The Compaq SMART-2 Array Controller, representing the fifth generation of
Compaq drive array technology, increases LAN data availability and
enhances LAN storage management capabilities through the On-line Capacity
Expansion feature and the Compaq Array Configuration Utility. A
significant breakthrough in fault-tolerant storage management, the On-line
Capacity Expansion feature of the SMART-2 Array Controller supports
hot-pluggable drives and allows network administrators to expand network
storage while the system remains operational.

Making networked storage management more intuitive, the Compaq Array
Configuration Utility -- which ships with the SMART-2 controller --
provides a graphical utility for configuring and modifying Compaq drive
arrays. This easy-to-use utility provides a graphical view of the
configuration process and guides users through each step. With the
Configuration Utility, users can choose an "express option" to conduct
drive array configurations or a "custom option." The "custom option"
allows for specific or unique requirements to be addressed in the array
configuration process. Additionally, modifying Compaq drive arrays is
simplified through the Array Configuration Utility. The Compaq Array
Configuration Utility runs in three modes -- on-line mode, off-line mode,
or integrated as part of SmartStart.

The SMART-2 controller, a 32-bit bus master product that can support up to
14 Fast-Wide SCSI-2 or Fast SCSI-2 drives, also increases overall system
performance by speeding the flow of critical network-based information to
and from network storage. The SMART-2 controller is available in both EISA
and PCI configurations.

BACKUP SOLUTIONS FOR THE DISTRIBUTED ENTERPRISE

Compaq's new high-end backup products provide high-performance,
high-capacity, scalable storage solutions that reduce the high costs and
extended time associated with backing-up and restoring data in the
distributed enterprise. In partnership with Cheyenne, Compaq set a new
standard in backup performance with the Compaq Digital Linear Tape (DLT)
Array. Performance testing of the DLT Tape Array demonstrated a backup
throughput of 46GB per hour3. Two DLT Tape Arrays enable network
administrators to back up 210GB of data in less than five hours4. Each DLT
Tape Array includes four Compaq 15/30-GB DLT Drives. The Compaq DLT Tape
Array, incorporating Cheyenne's JETserve software, uses the same RAID 5,
fault tolerance algorithm used for disk arrays, dramatically reducing
backup time and allowing customers to increase performance and capacity as
they require. Use of RAID 5 technology for tape also means greater
protection against device and media failure, as well as improved
performance. Available in a rack-mountable configuration, Compaq's DLT
Tape Array further enhances data availability by allowing full volume
restores or file- by-file restoration of critical data.

Supporting all Compaq ProLiant and ProSignia servers and SCSI Storage
Expanders, the Compaq 15/30-GB DLT Tape Drive can backup 15GB of
uncompressed data and up to 30GB of compressed data. By providing
increased capacity, the 15/30-GB DLT drive reduces the need for attended
backups and complex tape management schemes. The Compaq DLT Tape Drive
comes in both standard and rack-mountable configurations.

PRICING AND AVAILABILITY

The DLT Tape Array and the DLT Tape Drive are available in quantity at
announcement. The SMART-2 Array Controller will be available within 30
days of announcement and is priced at $2,2495. A DLT Tape Array Model 4,
which includes four drives, appropriate cables and Cheyenne JetServe 3.3
software, is priced at $22,7296. The DLT Tape Drive is priced starting at
$3,969.

Prices were reduced up to 35 percent on Compaq hard drives, tape drives and
processor board options. The following table details some representative
price reductions.

Product                                   Old ESP   New ESP  %Change
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4.3GB Pluggable Fast SCSI-2 Hard Drive    $1,589    $1,369     14
4/16-Gigabyte TuboDAT Drive               $1,699    $1,099     35
1.05GB Fast SCSI-2 Hard Drive             $509      $369       27
5/133 ProLiant System Processor Board     $5,679    $5,109     10

COMPANY BACKGROUND

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs, servers and options. Compaq
products are sold and supported in more than 100 countries throughout the
world.  Compaq also sells 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 Online, CompuServe, Internet
(http://www.compaq.com), and Prodigy, or by calling 1-800-345-1518.

1) IDC Data, units
2) IDC Data, revenue
3) Based on Compaq tests using an 8-drive DLT Tape Array and four
   SMART-2 Array controllers.
4) Based on 46GB/hour data transmission.
5) All prices are estimated street prices. Actual prices may vary.
6) Price of DLT Tape Array Model 4 with four DLT Tape Drives and
   Cheyenne JetServe 3.3 software.
 
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