Compaq Introduces Record Number of Presario Home PCs

COMPAQ LOWERS U.S. PRICES ON SELECT HIGH PERFORMANCE BUSINESS DESKTOPS,
SERVERS AND OPTIONS

HOUSTON, May 7, 1996 -- As part of its recent plan to continue the
successful sell-through and competitive positioning of its products,
Compaq Computer Corporation (NYSE: CPQ) today lowered U.S. prices by up to
28 percent on a full range of its popular high performance Intel Pentium
Pro processor-based desktop personal computers and up to 15 percent on its
Pentium processor-based servers. Compaq also lowered the prices of key
options, such as memory and monitors, by as much as 40 percent.

"Compaq continues to lead the industry in delivering greater value to
customers," said Ross Cooley, Senior Vice President, General Manager,
Compaq North America. "Today's products and options reductions, combined
with Compaq's first quarter pricing and promotional actions, clearly
position the company to take advantage of marketshare opportunities. As
the leading supplier to the market, we are able to pass on component
savings to our customers, which enables us to remain an excellent value
versus both indirect and direct competitors."

DESKTOP PRICE REDUCTIONS

Compaq lowered the prices of its 150-megahertz Pentium Pro processor-based
desktop products. With increased availability and lower option prices,
Compaq is able to pass on savings to customers on several high performance
models. All Compaq ProLinea "E" models with a 150MHz Pentium Pro processor
now start at less than $3,000. Combined with its announcement in March of
Pentium Pro processor-based desktops, Compaq continues to offer the
industry's broadest range of desktop products based on Pentium technology.
The desktop price reductions include the following models:

DESKTOP PC                            NEW PRICE    OLD PRICE   %Drop

Compaq Deskpro XL 6150 M1050/CDS/ML    $ 3,699      $ 4,999     26%
Compaq Deskpro XL 6150 M2100/PD/ML     $ 4,899      $ 6,499     25%
Compaq Deskpro XL 6200 M2100/PD/ML     $ 5,399      $ 6,899     22%
Compaq ProLinea 6150e MT6 M1620        $ 2,899      $ 3,999     28%
Compaq ProLinea 6150e MT6 M1080        $ 2,999      $ 4,175     28%
Compaq ProLinea 6180e MT6 M1620        $ 3,199      $ 4,299     26%

Compaq also lowered the prices of some of its most popular desktop options,
such as 8- and 16-megabyte memory modules and monitors, from 12 to 40
percent.

SERVER PRICE REDUCTIONS

Compaq today also lowered the prices of select server models in the Compaq
ProSignia 300 and Compaq ProLiant 4500 families. The server reductions
include the following:

SERVERS                              NEW PRICE   OLD PRICE   %Drop

ProLiant 4500 5/166 Model 1           $ 11,136    $ 13,068    15%
ProLiant 4500 5/166 Model 2           $ 15,682    $ 17,614     1%
ProLiant 4500 5/166 Model 8600S       $ 15,680    $ 17,611    11%
ProLiant 4500 5/166 Model 1 NT/Array  $ 13,920    $ 15,620    11%
ProLiant 4500R 5/166 Model 1          $ 12,301    $ 14,233    14%
ProLiant 4500R 5/166 Model 2          $ 16,847    $ 18,778    10%
ProLiant 4500R 5/166 Model 1 NT/Array $ 15,085    $ 16,785    10%
ProSignia 300 5/90 Model 1            $  2,333    $  2,444     5%
ProSignia 300 5/90 Model 1050         $  2,699    $  2,810     4%
ProSignia 300 5/90 Model 2100         $  3,243    $  3,354     3%
ProSignia 300 5/120 Model 1           $  2,556    $  2,889    12%
ProSignia 300 5/120 Model 2100        $  3,466    $  3,799     9%

In addition, Compaq lowered the prices across the board on server memory
options ranging from 23 to 34 percent. Now with even lower prices, Compaq
continues to deliver outstanding value and performance on the server
level.

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
(http://www.compaq.com), and Prodigy, or by calling 1-800-OK-COMPAQ.
Product information and reseller locations can be obtained by calling
1-800-345-1518.
 
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