COMPAQ AND FISHER-PRICE TEAM UP TO TRANSFORM 'EDUTAINMENT' -- JOINTLY
DEVELOPED PRODUCTS WILL OFFER NEW DIMENSION IN PLAY AND LEARNING

HOUSTON, Aug. 29, 1995 -- In a move that will change the way families play
and learn, Compaq Computer Corporation (NYSE: CPQ) and toy manufacturer
Fisher-Price, a subsidiary of Mattel, Inc. (NYSE: MAT) today announced
they have teamed up to develop, manufacture and market a totally new line
of education and entertainment-oriented products for young children.

The new alliance represents an important moment for each company as it
combines the efforts of the world's leading manufacturers of computers and
pre-school toys to provide new and engaging ways for young children to
harness the power of their multimedia PCs to play and learn.

The opportunities for multimedia PC-based play and learning products are
enormous. Current research shows that more than 35 million PCs have been
sold into the home environment, and that nearly 30 percent of the 18
million U.S. households that have multimedia PCs, also have children under
the age of seven.

"It's no secret that parents are looking for products that combine the
entertainment and educational value of PCs," said Eckhard Pfeiffer,
president and CEO of Compaq Computer Corporation. "Products produced by
this partnership will help satisfy customer needs by delivering new and
fun ways to play and learn, developed by companies whose names families
have come to know and trust.

"This partnership with Fisher-Price will help us reach an exciting new
dimension in family and lifestyle computing and fits perfectly with our
vision of providing truly useful innovation to the consumer marketplace,"
Pfeiffer added.

The new products will utilize hardware and software technology and are
expected to be introduced in mid-1996 through the PC and toy channels.
Additional product details were not disclosed, but prototypes are expected
to be unveiled early next year.

"As a world leader in developing and marketing creative and educational
toys for children, Fisher-Price is always looking to identify and respond
to family needs," said Byron Davis, president and CEO of Fisher-Price.
"The tremendous popularity of home computers means it is now possible to
add a new dimension to how pre-school age children play and learn. We plan
to link education, entertainment and PCs together in a fun, imaginative
and innovative way. We believe we can leverage the respective strengths of
Compaq and Fisher-Price to develop products that capture and stimulate the
imaginations of children and parents."

As part of the alliance, each company will focus on its particular
strengths to benefit the combined effort. Fisher-Price will bring its
expertise in designing and manufacturing engaging products that stimulate
play and learning to the partnership. Compaq will bring its expertise in
creating innovative, reliable and lifestyle-enhancing technology. Defined
teams within the two companies are working together on product design,
manufacturing and consumer marketing. To ensure the products provide the
desired educational value, the teams utilize educational specialists and
make heavy use of Fisher-Price's special "child testing lab."

"Both companies have impeccable reputations for quality, reliability,
service and support. We are extremely excited and confident about
leveraging these strengths to create products that parents will trust and
children will thoroughly enjoy," added Davis. "By combining forces on this
project, we can accomplish together what we might not have been able to
individually."

Corporate Backgrounds

A wholly-owned subsidiary of Mattel, Inc. since 1993, Fisher-Price, Inc. is
a leading manufacturer of toys and children's products. The company was
founded in 1930 and enjoys a reputation for designing and manufacturing
high quality, imaginative toys for infants and preschoolers, as well as
innovative children's products such as video monitors and strollers.

Mattel, Inc. is a worldwide leader in the design, manufacture and marketing
of children's toys. With headquarters in El Segundo, Calif., Mattel has
offices and facilities in 36 countries and sells its products in more than
140 nations throughout the world.

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs, and servers. Compaq's
family of easy-to-use multimedia Presario computers is designed
specifically for home and home office use. The Compaq Presario family is
available at more than 6,000 authorized retail locations nationwide,
including computer superstores, office products superstores, consumer
electronics stores, mass merchandisers, general merchandise outlets,
catalog showrooms, warehouse clubs, campus bookstores and military
exchanges.

Founded in 1982, Compaq 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 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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