Compaq Introduces New Value- and Technology-Packed Presario Home PCs

-- New Scanner Keyboard, 'Rewriteable' CD-ROM Drive, Value Pricing
Highlight New Line

HOUSTON, Jan. 29, 1996 -- Continuing to set the consumer PC industry
benchmark for providing value and technology leadership, Compaq Computer
Corporation (NYSE: CPQ) today rolled out its spring lineup of home
multimedia PCs that combines industry-leading value with new and useful
technologies. The new line includes the industry's first combination
scanner/keyboard, "rewriteable" CD-ROM drives, 6X-speed CD-ROM drives, and
the most powerful new Pentium processors.

Expected to be on retailer store shelves in February, the 11 new models
extend Compaq's award-winning line of Presario PCs and provide customers
with unmatched multimedia at aggressive, value- packed prices. For
example, the new Compaq Presario 9232 features a minitower design, Pentium
120 MHz processor, 28.8K BPS modem and MPEG video technology for just
$1,799 (NOTE 1) With prices on other models starting as low as $1,499, the
new Presario lineup features hardware and software-based MPEG video, rich
3-D stereo sound, large hard drives, plenty of memory, fast modems, and a
broad collection of bundled software programs -- all backed by a
comprehensive customer support program including a three-year limited
warranty (NOTE 2).

"Compaq continues to provide exciting technology and useful innovation to
enhance the lives of today's home computing consumers," said Mike Heil,
senior vice president and general manager, consumer division, Compaq
Computer Corporation. "Our exciting new Presario products, Scanner
Keyboard, rewriteable CD-ROM drive and Media Pilot communications system
provide consumers with an outstanding multimedia computing experience and
an exceptional home office solution."

VALUE-PACKED COMBINATIONS: PRESARIO 7200 AND 9200 SERIES

The new Compaq Presario 7200 Series includes five desktop PCs ranging in
price from $1,499 to $2,499. The Presario 9200 Series combines an
exceptional collection of core features with an expandable minitower
design. Priced from $1,799 to $2,999, the Presario 9200 Series is designed
to appeal to multimedia and home office customers who require superior
technology and flexibility.

All Presario 7200 and 9200 Series PCs feature software-based MPEG
technology that provides full-screen video. They also feature a wide range
of powerful Intel Pentium processors (75-150 MHz.); an integrated 4X- or
6X-speed CD-ROM drive; 8-16 MB of RAM standard; 1.0-2.0 GB hard disk
drives; a 19.2/14.4K or 28.8/14.4K BPS data/fax modem, Spatializer 3-D
stereo sound; super-fast PCI local bus graphics; dozens of high-quality
pre-installed or bundled software titles; telephone answering machine
functions; and a full-duplex speakerphone. The new Presario PCs also
include SpeechMail voice recognition that enables the consumer to remotely
retrieve voice mail messages by using natural voice commands.

All Presario 7200 and 9200 Series models can be easily upgraded to Compaq's
TrueQ&#153; Audio and Motion technology that provides TV-quality video and
CD-quality audio through hardware-based MPEG technology and wavetable
synthesis audio, for the richest multimedia experience available. TrueQ
MPEG and TrueQ wavetable synthesis upgrade modules are priced at $100
each.

The Compaq Presario 7232 is priced at $2,199, and includes Compaq's new
Scanner Keyboard -- which can help transform a PC into a "paperless" home
office. Using the Scanner Keyboard, PC users can effortlessly scan
documents, graphics and business cards by feeding them into a scanner
built into the keyboard. Once scanned, these documents can then be faxed,
copied, stored or incorporated into a variety of Windows 3.1 or Windows
95-based applications

The Compaq Presario 9240, priced at $2,799, features the industry's first
standard rewriteable optical PD-CD drive, which provides expanded storage
potential and the ability to quickly and easily "back- up" the hard drive
for data security and protection.

THE ULTIMATE MULTIMEDIA PC COLLECTION: COMPAQ PRESARIO 9600 SERIES

The Presario 9600 Series represents Compaq's premier home PCs and includes
two models that offer exceptional power, expandability and the ultimate
multimedia experience, when combined with the new Presario 1410 and 1510
Multimedia Monitors. Featuring Compaq's exclusive TrueQ Audio and Motion
technology as a standard feature, the Presario 9600 Series is designed to
appeal to multimedia enthusiasts and home office customers who desire
"leading edge" technology in an expandable minitower design. The Presario
9600 Series includes fast 133 MHz and 166 MHz Pentium processors;
integrated 4X- and 6X- speed CD-ROM drives; 16 MB of RAM standard; up to
2.0 GB hard disk drives; 28.8K BPS data/fax modems; Spatializer&#153; 3-D
stereo sound; accelerated hardware-based MPEG full motion video;
hardware-based wavetable synthesis; super-fast PCI local bus graphics;
dozens of high-quality bundled software titles; telephone answering
machine functions; full-duplex speakerphone; and SpeechMail voice
recognition. The Compaq Presario 9600 Series is priced from $2,499 to
$2,999.

COMPAQ SCANNER KEYBOARDS

Compaq's new Scanner Keyboard revolutionizes the way today's PC user can
store important images or paper documents. Tax statements, medical forms,
business cards and photos can be scanned, organized and later retrieved in
a matter of seconds. The scanner is imbedded in the keyboard and is
activated by the presence of paper. Utilizing PaperPort&#153; Software
developed by Visioneer Communications, Inc., the Scanner Keyboard scans
the image and reproduces it on-screen in an electronic format. Since the
scanner transfers the document verbatim into the computer, it can
eliminate the need for additional equipment, such as a fax machine or
copier, and save desk space. Documents can also be scanned and sent as
attachments via e-mail, thus reducing the need for shipping by overnight
courier. A combination of included Xerox Textbridge Optical Character
Recognition and PaperPort software allows PC users to incorporate the
scanned documents into other applications and manipulate them.

Compaq is also marketing the Scanner Keyboard independently from the
Presario line for $349 as part of a new Compatibles by Compaq line of
products designed to work with virtually any 486-based or better
industry-standard PC on the market

COMPAQ REWRITEABLE OPTICAL PD-CD DRIVE: EXPANDED DATA STORAGE

The Compaq rewriteable optical PD-CD drive offered standard on the Presario
9240 acts as a second hard drive, providing convenient and expanded
storage (650 MB per disc). The new PD-CD drive is actually two drives in
one: a 4X-speed CD-ROM drive; and a rewriteable optical drive. Using the
PD-CD drive, consumers can not only play traditional CD-ROM programs or
music CDs, but can also write to new PD-CD cartridges to quickly and
easily store data intensive files or archive critical material. PD-CD
cartridges currently retail for about $30 and can be used for
approximately 30 years, making the PD-CD an economical choice over adding
additional hard drives to a PC.

With its "back-up" capability, the PD-CD drive also virtually eliminates
the need for tape drives or additional hard drives and creates a
transportable hard drive equivalent that can be shuttled between home and
office, or stored for added security. Storing files on PD discs also
provides additional space for numerous software applications and multiple
PC users.

THE COMPAQ PRESARIO SOFTWARE BUNDLE: SOMETHING FOR EVERYONE

All Compaq Presario 7200, 9200 and 9600 Series PCs come bundled with dozens
of high-quality software titles -- including MPEG-based Compton's
Multimedia Encyclopedia and The Faces of Life. Other bundled or
preinstalled software titles offer something for every member of the
family and include productivity, entertainment, education and reference
titles, as well as online services. In addition, enhanced versions of
Compaq's exclusive MediaPilot and MiniPilot are preinstalled to provide
fast access to the Presario's sensational multimedia features.  A special
Presario Vault utility helps keep confidential files secret and a
QuickRestore CD allows the user to restore applications if needed.

PRESARIO MULTIMEDIA MONITORS

The multimedia experience generated by the Compaq Presario 7200, 9200 or
9600 PCs is augmented by new Compaq Presario Multimedia Monitors. The new
Presario 1410 and Presario 1510 Multimedia Monitors feature enhanced
stereo speakers that have the acoustic ability to effortlessly fill a
living room and totally enhance the multimedia experience with an
integrated amplifier and fixed equalizer support for high- fidelity sound.
Available in February, the Presario 1410, a 14-inch monitor (12.9-inch
viewable display area), is priced at $399. The Presario 1510, a 15-inch
monitor (13.4-inch viewable display area) is priced at $499. The Presario
1410 and 1510 Multimedia Monitors are backed by a one-year limited
warranty.

INDUSTRY LEADING SERVICE AND SUPPORT

The new Compaq Presario 7200, 9200 and 9600 Series PCs are backed by
Compaq's award-winning service and support programs and feature a 3-year
limited warranty. PC Magazine and PC World recently rated Compaq at the
top of the industry in providing service and reliability (NOTE 6).

COMPANY BACKGROUND

Compaq Computer Corporation is a world leader in the manufacture of desktop
and notebook personal computers, and servers. Founded in 1982, the company
reported 1995 worldwide sales of $14.8 billion. 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.
 
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