Compaq Adds IBM OS/2 and LAN Server to SmartStart

Compaq and IBM Strengthen Support of OS/2 on Compaq Platforms

HOUSTON, June 20, 1994 -- In response to customer demand for optimized
integration of the IBM OS/2 operating system on Compaq products, Compaq
Computer Corporation (NYSE: CPQ) today announced the availability of IBM
OS/2, LAN Server and TCP/IP on Compaq SmartStart, and support for IBM OS/2
and LAN Server on Compaq Insight Manager. These products will be available
from Compaq starting in July.

Compaq and IBM have been working together since 1991 to ensure the highest
level of compatibility and support for IBM OS/2 and related software
products on Compaq hardware products. With increased customer demand for
multi-vendor support of operating systems, today's announcement reflects
the stepped-up efforts by the two companies to elevate the level of
integration and improve the usability of Compaq- and IBM OS/2-based server
platforms.

SmartStart is Compaq's innovative method of distributing, installing and
optimizing industry standard operating systems on Compaq platforms to
ensure a reliable and supportable configuration. Shipped with Compaq
ProLiant and ProSignia servers, the SmartStart CD-ROM package contains
encrypted operating systems and software which can be unlocked simply by
purchasing activation keys from Compaq. Software purchased from Compaq
through SmartStart is competitively priced with software purchased from
other vendors.

"Compaq is committed to providing tighter integration, and improved
ease-of-installation and operation to our customers who have selected IBM
OS/2," said Gary Stimac, Senior Vice President and General Manager,
Systems Division, Compaq Computer Corporation. "As an industry leader we
are dedicated to ensuring optimization of our servers for all key
operating systems. This alliance with IBM will provide the framework for
our continued efforts to support OS/2 on Compaq platforms."

OS/2, IBM's 32-bit personal operating system, has won more than 40 industry
awards for its industry-leading performance and technology. LAN Server,
IBM's powerful multiplatform network operating system, was developed to
take advantage of OS/2's rich client/server capabilities.

"We are pleased with the customer demand for OS/2 products that is leading
hardware companies to take actions like this one by Compaq," said Dan
Lautenbach, Assistant General Manager Personal Software, IBM Personal
Software Products division. "This partnership gives customers another
choice of platforms optimized for OS/2 and LAN Server."

IBM OS/2 and LAN Server will also be supported by Compaq Insight Manager, a
Windows-based network management tool which helps network administrators
more efficiently manage Compaq server environments. Standard on Compaq
ProLiant and ProSignia servers, Insight Manager allows the server to
intelligently monitor itself and its environment and alert the
administrator to potential problems or changes in server status. Customers
who purchase OS/2 or LAN Server via SmartStart will receive an activation
key for Insight Manager and a key for Insight Management Agents for OS/2
at no additional charge. (Agents provide specific information about Compaq
servers such as status of disk and memory subsystems, supported security
features, and specific health information such as error logs and
temperature.)

Future versions and upgrades of IBM OS/2 and LAN Server -- including IBM's
planned support for symmetrical multiprocessing (SMP) -- will be fully
supported on Compaq servers and available on SmartStart. Compaq and IBM
have been working together to develop platform-specific drivers to support
multiprocessing ProLiant servers, and a number of Compaq customers have
been participating in a beta program to ensure full compatibility of
Compaq products with IBM's future SMP products.

COMPANY BACKGROUND

Compaq Computer Corporation is a world leader in the manufacture of servers
and desktop, portable, and notebook personal computers. Founded in 1982,
the Company reported 1993 worldwide revenues of $7.2 billion. COMPAQ
products are sold and supported in more than 100 countries through a
network of more than 21,000 Compaq marketing partners. Compaq also sells
directly to customers through COMPAQ DirectPlus at 1-800-888-5858. For
information on Compaq products, call 800-345-1518. Users needing technical
support for Compaq products can call 1-800-OKCOMPAQ.

Compaq Computer Corp
PO Box 692000
Houston, TX 77269-2000

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