Compaq Lowers U.S. Prices on Select Pentium-Based Commercial Desktop
Products

HOUSTON, May 21, 1996 -- Continuing to set the standard for extending value
and price leadership to its customers, Compaq Computer Corporation (NYSE:
CPQ) today lowered U.S. prices on the majority of its Intel Pentium
processor-based commercial desktop products by up to 24 percent. The
announcement, combined with Compaq's recent price reductions (May 6) on
its high end Pentium Pro processor-based desktops, demonstrates the
company's commitment to provide businesses with powerful computing
solutions at competitive prices.

"As the leading supplier of Pentium processor-based technology, Compaq
continues to pass on significant component savings to its commercial
desktop customers. These value-based products combined with a strong
reseller network will enhance our customers' success in cost-effectively
managing their businesses," said Ross Cooley, Senior Vice President,
General Manager, Compaq North America.

DESKTOP PRICE REDUCTIONS

The price reductions span Compaq's entire commercial desktop product line
including select models of the ProLinea E, ProLinea, Deskpro and Deskpro
XL. For price sensitive customers seeking a high quality brand name
product with significant value and features, Compaq ProLinea and ProLinea
E models have been reduced up to 24 percent. For example, the ProLinea E
5/100 Model 630, with a 100 MHz Pentium processor, is now available for
$1,2991 . In addition, the ProLinea 5133 Model 1200, with a 133MHz Pentium
processor, is now priced 11 to 18 percent below comparable HP VL4 and IBM
350 desktop products.

Prices of select Deskpro models were reduced from 20-24 percent. The
Deskpro family is designed for networked corporate customers and features
Compaq Intelligent Manageability that makes it easier for customers to
manage PCs in a networked environment. With the price reductions, the
Deskpro 5133 Model 1200 is now priced 18 to 22 percent less than
comparable HP XM4 and IBM 750 desktop models.

Several models of Compaq's flagship product line, Deskpro XL, designed to
optimize performance in a distributed environment, have also been reduced
in price from 8 to 23 percent

COMPANY BACKGROUND

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs, servers and options. The
company reported 1995 worldwide sales of $14.8 billion. Compaq products
are sold and supported in more than 100 countries through Compaq marketing
partners and sold 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,
and Prodigy, or by calling 1 800 OK-COMPAQ. Product information and
reseller locations can be obtained by calling 1-800-345-1518.

(1) All prices listed herein are U.S. estimated reseller prices. Reseller
prices will vary.
 
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