MICROSOFT AND COMPAQ SIGN OEM AGREEMENT FOR MICROSOFT BACK OFFICE --
INDUSTRY LEADERS FOCUS PARTNERSHIP ON CLIENT-SERVER SOLUTIONS

New York City -- June 20, 1995 -- Microsoft Corporation (NASDAQ: MSFT) and
Compaq Computer Corporation (NYSE: CPQ) today strengthened their strategic
relationship with a new OEM agreement that focuses the systems expertise
of both companies on delivering the tightly integrated, high-availability
client-server solutions demanded by customers. Compaq later this year will
offer new versions of its server platforms that will ship with the
complete Microsoft BackOffice family of server applications for the
Microsoft Windows NT Server operating system. The customers of both
companies will benefit from today's agreement through reduced cost of
ownership, increased system manageability, improved high-availability
systems and innovative, jointly-backed service and support programs.

The OEM agreement announced today builds on an existing relationship
whereby Compaq has offered Windows NT Server and Microsoft SQL Server for
Windows NT for the past year. This new agreement also helps encourage
customers to utilize powerful, distributed computing for deploying
enterprise-wide, business-critical solutions. Building on Compaq's
extensive knowledge of integrating Microsoft operating system and database
software on Compaq clients and servers, Compaq and Microsoft can offer
customers client-server solutions which are well-tuned, tightly integrated
and highly reliable.

The OEM agreement is part of a group of agreements undertaken by the two
companies. The additional agreements covered: joint technical support
procedures for customers using both Compaq and Microsoft client-server
products; support for Microsoft BackOffice in the Compaq SmartStart
configuration and optimization tool; and expanded joint marketing
activities under a new, Compaq/Microsoft Business Solutions Partnership
program.

Industry-leading Products

The Compaq ProLiant 4500, introduced in May, 1995, is an ideal application
server platform for Windows NT Server environments, offering customers
midrange-class capabilities and features at unprecedented
price/performance value. The ProLiant 4500 delivers the scalability
features required by key client-server-based enterprise applications, such
as SAP R/3, that run on Windows NT Server. The scalability of the ProLiant
4500 protects customers' technology investments and offers the
high-availability features demanded by customers implementing
enterprise-wide, business-critical client-server solutions. The ProLiant
4500 is the only application server in its class to provide customers with
Full Spectrum Fault Management, an extensive array of fault prevention,
fault tolerance and rapid recovery features.

Microsoft BackOffice is an integrated family of server software designed to
help customers make better decisions and streamline business processes. It
includes five best-of-breed products that work together whether they're
running on a single server or on multiple servers across a company's
network. Those products are: Microsoft Windows NT Server as the network
foundation; Microsoft SQL Server for managing and storing data; Microsoft
SNA Server for host connectivity; Microsoft Systems Management Server for
managing PCs and servers; and Microsoft Mail Server for distributing
information.

Companies Endorse and Use Each Others Products Compaq today endorsed
Microsoft BackOffice as a premier application server solution and cited
its strong file and print server solution capabilities. Microsoft endorsed
the Compaq ProLiant family of servers as a premier BackOffice server
platform. Both companies also confirmed that they have deployed
business-critical distributed applications using each others products.

Customers adopting client-server solutions to solve critical business
objectives need strong partnerships that can deliver the benefits promised
by that technology, said Ross Cooley, senior vice president and general
manager, Compaq North America. Our BackOffice agreement with Microsoft
forms that kind of partnership, sets a direction for our two companies to
deliver new customer benefits in client-server computing, and lets our
joint customers know we have their best interests and critical needs in
mind, he said.

We are pleased to expand our existing relationship with Compaq, a clear
market leader in client-server hardware platforms for mainstream and
high-end computing, said Paul Maritz, group vice president, Platforms
Group at Microsoft. Compaq has outstanding expertise in providing high
availability and management features that complement the distributed
computing benefits inherent in Windows NT Server and the BackOffice
family, he concluded.

New Pact Covers Technical Support, SmartStart, Business Solutions
Partnership

In addition to the OEM contract, the new pact between Microsoft and Compaq
covers joint technical support, SmartStart integration of BackOffice
products, and creation of the Compaq/Microsoft Business Solutions
Partnership.

Joint Technical Support. The companies have expanded their coordinated
technical support of client-server customers using Microsoft BackOffice
software on Compaq hardware. Microsoft will directly provide fee-based
support to customers who license Windows NT Server or the BackOffice
family through Compaq. Previously, Compaq was solely responsible for
providing such support. In addition, Compaq technical support personnel
can draw upon Microsoft personnel and resources, when appropriate, to help
their mutual client-server customers.

BackOffice Support in SmartStart. The new agreement also calls for Compaq
to expand support for BackOffice in its Compaq SmartStart integration tool
for installing and integrating highly-optimized servers. SmartStart gives
users an easier, more reliable way to install, configure and optimize
server-based software for Compaq platforms. SmartStart is included as a
standard feature with all Compaq servers. The current version of
SmartStart already supports Windows NT Server and Microsoft SQL Server.

Compaq/Microsoft Business Solutions Partnership. The two companies also
established a Compaq/Microsoft Business Solutions Partnership to
accelerate and simplify the deployment of client-server solutions, modeled
on their successful Compaq/Microsoft Frontline Partnership. Under the
Business Solutions Partnership, the companies will expand the distribution
channel's infrastructure for supporting distributed computing with new
marketing, advertising and jointly sponsored events. One goal is to expand
the availability of high-quality consulting, integration, installation and
maintenance capabilities for customers that are deploying client-server
solutions.

Joint Investment in Channel Infrastructure

Compaq and Microsoft share an extensive network of highly trained resellers
and service providers, drawn from more than 6,000 Microsoft Solution
Providers and 38,000 Compaq marketing partners worldwide. The two
companies are teaming up with this broad network of channel partners to
provide innovative service and support programs which help customers
simplify the configuration, installation, maintenance and management of
Compaq servers running Microsoft BackOffice. The companies plan to invest
in joint training and marketing programs with the channel to ensure that
customers have easy access to knowledgeable individuals who can speed the
design and implementation of client-server applications.

We are pleased that Microsoft and Compaq, two industry leaders, are teaming
to deliver even more tightly-integrated customer solutions. Individually,
we deliver leading client-server software and hardware components to meet
today's business computing needs, said Jay Amato, president, Vanstar North
America. With all of us working together, we are able to better deliver
integration, consulting and training services to deploy reliable,
highly-manageable business solutions for our customers, he said.

Compaq Background

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs and servers. Founded in
1982, the company reported 1994 worldwide sales of $10.9 billion. Compaq
products are sold and supported in more than 100 countries through a
network of more than 38,000 Compaq marketing partners. Compaq also sells
directly to customers thorough Compaq DirectPlus 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.

Microsoft Background

Founded in 1975, Microsoft (NASDAQ MSFT) is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing everyday.

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
