Compaq Launches New Low-Cost, Pentium Powered ProLinea Desktops for
Business Customers -- Entry Level Compaq ProLinea "E" Models Priced at
least $100 less than HP Vectra VE

HOUSTON, October, 2, 1995 -- Compaq Computer Corporation (NYSE:CPQ) today
fired another salvo in its ongoing drive to set the standard for value
leadership with the introduction of the Compaq ProLinea "E" Series. The
new high-quality desktop personal computers are ideal for business
customers who have been waiting to buy a name brand Pentium
processor-based PC at a 486 price.

The six new ProLinea "E" models range in price from $1, 369 to 1,999 (NOTE
1), and entry level units are priced at least $100 below comparable
products from Hewlett Packard and IBM.  The all Pentium processor-based
ProLinea "E" Series is an extension of the Compaq ProLinea line, one of
the world's best selling desktop PCs and widely recognized as the
bellwether for quality and value to price-sensitive customers. Combined
with Compaq's announcement in August (NOTE 2) of new Pentium-processor
based desktops and across- the-board price reductions, the company is
strategically positioned for what is typically the busiest selling season
of the year.

"Compaq today puts an exclamation point on its recent product and pricing
moves that will thrill our business customers and keep our competitors
shaking their heads and sharpening their pencils," said Eckhard Pfeiffer,
president and CEO, Compaq Computer Corporation.

"We anticipate our competitors will as usual try to follow our leadership
as we continue to set the pace for product introductions, pricing,
distribution and support. Compaq's sizzling pace of launching new products
based on the Pentium processor combined with a strong reputation for
quality and reliability, top rated technical support and a highly skilled
reseller channel will continue to make the difference," Pfeiffer added.

COMPAQ PROLINEA &QUOT;E&QUOT; SERIES

The Compaq ProLinea "E" Series, available in volume today, is Windows 95
ready and comes standard with the latest features: a wide range of Pentium
microprocessors, the PCI/ISA expansion bus architecture, large standard
hard drives (630 MB and 1 GB), 8 MB of memory, and a three-year limited
warranty. The Compaq ProLinea 575e includes a 75 MHz processor, the Compaq
ProLinea 5100e includes a 100 MHz processor, and the Compaq ProLinea 5120e
includes a 120 MHz processor.

"Compaq continues to offer customers the broadest line of Pentium
processor-based products.  So far, Compaq has introduced worldwide more
than 200 new desktop, server and notebook models with Pentium processors
to the consumer and commercial markets -- and the year is not over yet,"
Pfeiffer added.

COMPETITIVELY PRICED PCS FOR BUSINESS CUSTOMERS

The new ProLinea "E" Series is priced significantly lower than comparable
models from Hewlett Packard and IBM. For example, the Compaq ProLinea 575e
comes standard with a larger hard drive, yet is priced $100 less than a
similarly configured HP Vectra VE.

             Compaq ProLinea 575e    HP Vectra VE      IBM PC 330
---------------------------------------------------------------------
Processor    Pentium 75 MHz          Pentium 75 MHz    Not Offered
Memory       8 MB                    8

For more performance, the Compaq ProLinea 575e with an added 256 KB
secondary cache ($95) includes a larger hard drive, yet is priced $183
less than a comparable HP Vectra VE and $124 less than a comparable IBM PC
330:

             Compaq ProLinea 575e    HP Vectra VE      IBM PC 330
---------------------------------------------------------------------
Processor    Pentium 75 MHz          Pentium 75 MHz    Pentium 75 MHz
Memory       8 MB

The 100 MHz Compaq ProLinea 5100e is also priced aggressively versus HP and
IBM.  In fact, for this class of product, HP only offers a 90 MHz model. 
Yet, the Compaq ProLinea 5100e with a faster processor and larger hard
drive is still priced $174 less than the HP Vectra VE.  The same Compaq
model is priced $135 less than a similarly configured IBM PC 330 model:

             Compaq ProLinea 5100e   HP Vectra VE      IBM PC 330
---------------------------------------------------------------------
Processor    Pentium 100 MHz         Pentium 90 MHz    Pentium 100 MHz
Memory       8 MB

Neither HP nor IBM offers a low cost desktop PC with a 120 MHz Pentium
processor in this class of product.  The Compaq ProLinea 5120e however is
still aggressively priced starting at $1,849 for a model with a 630 MB
hard drive:

             Compaq ProLinea 5120e   HP Vectra VE      IBM PC 330
---------------------------------------------------------------------
Processor    Pentium 120 MHz         Not Offered       Not Offered
Memory       8 MB
Hard Drive

COMPANY 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 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- 345-1518.

NOTE 1: All prices listed herein are estimated US reseller prices;
        actual prices may vary. Monitor not included.

     2: See 8/16/95 Press Release: "Compaq Announces Sweeping Price
        Cuts, Launches 133 MHz Pentium Processor Based PCs
 
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