Compaq Ships New LTE 5000 High Performance Notebook PCs -- Notebook to
Feature New 120 MHz Mobile PentiumR Processor

HOUSTON, October 3, 1995 -- Continuing its drive to provide customers with
the high performance and flexibility they require for advanced mobile
computing, Compaq Computer Corporation (NYSE:CPQ) today began shipping its
flagship notebook, the LTE 5000. Available initially in five model
configurations, the new family features a full line- up of Pentium
processor-based models, followed next month by the addition of the
soon-to-be-announced Intel Mobile Pentium 120. The LTE 5000 product family
also offers CD-ROM capabilities, and the industry's largest displays,
largest hard drive storage and highest expandable memory.

"Designed to meet the most rigorous performance demands of today's mobile
professional, the new LTE 5000 offers unmatched power and performance in a
notebook PC," said Hugh Barnes, senior vice president and general manager,
Portable PC Division. "The needs of our customers change daily, whether
they're making presentations, traveling the globe or simply spending a day
in the office, and the LTE 5000 has been designed to easily adapt to those
needs."

Priced from $3,9991 to $6,699, the LTE 5000 has begun shipping to
resellers.

First announced to the public in conjunction with Microsoft's Windows 95
launch in August, the LTE 5000 was selected by Microsoft for use by its
engineering and sales teams for demonstrating the capabilities of Windows
95, Windows NT and Microsoft BackOffice.

POWER AND PERFORMANCE AT ITS FINEST WITH MOBILE PENTIUM 120

The new LTE 5000 is available in a variety of powerful Pentium processor-
based configurations: 75 MHz, 90 MHz, and soon the new 120 MHz Mobile
Pentium.

"By offering a family of Pentium processor-based notebooks, Compaq's
customers will have many choices in which to enjoy desktop performance in
mobile systems," said Stephen P. Nachtsheim, vice president of Intel's
Mobile and Handheld Products Group. "Compaq's flagship product line
contains some of the most advanced features in notebooks, such as a 64-bit
architecture and PCI local bus. The quality built in by Compaq will allow
users to take full advantage of the Pentium processor's superb speed and
performance."

AS POWERFUL ON THE ROAD AS IT IS IN THE OFFICE

The LTE 5000 features a number of technical innovations, including its
front-loading MultiBay modular design. With the simple push of a button --
without ever opening the notebook -- mobile professionals can quickly and
easily add a CD-ROM drive, a second hard drive, an extra battery or a 3.5
inch diskette drive, depending on their unique and diverse needs. The LTE
5000 also offers unprecedented memory expansion -- up to 72 MB -- and
internal hard drive capacity up to 2.7 GB, all in an easy-to-carry
notebook PC.

Customers can select from a choice of displays including 11.3 inch and 10.4
inch color STN or a 10.4 inch color TFT. Supporting up to 16.8 million
colors and 800X600 resolution and combined with low reflection technology,
these displays provide crisper, clearer images.

One of today's complex challenges for MIS directors is managing fleets of
notebooks for multiple groups within their organizations. Because of its
flexible features, MIS directors can select a single notebook platform,
building on the features they need for their diverse organizations such
as:

 * A removable CD-ROM drive which accepts both 5.25 inch and 3.5 inch
   CDs in a variety of formats including video CD, CD-i, Kodak Photo
   CDs and Audio CDs;
 * 510 MB, 810 MB or 1.35 GB hard drives, supporting dual hard drives
   for up to 2.7 GB of internal storage in the notebook and 5.4 GB
   when combined with the Multibay Expansion Base;
 * Support for up to two batteries in a choice of either Nickel Metal
   Hydride or Lithium-Ion -- or a combination of both technologies
   -- for up to eight hours of run time;
 * 3.5 inch diskette drive, which comes standard with every unit;
 * A Weight Saver Module, offered with every model, which allows users
   to reduce notebook travel weight.
 * Preloaded with both Windows 95 and Windows 3.1, offering customers
   a choice in the their selection of operating systems.

INDUSTRY'S FIRST MODULAR EXPANSION BASE FOR THE OFFICE

With the Multibay Expansion Base, the industry's first modular docking
station, devices can be shared between the notebook and the base, slipping
easily into the base and extending the system's flexibility and
functionality.

For instance, customers may choose to use two hard drives in the notebook
-- offering up to 2.7 GB of storage internal to the unit -- as well as two
additional drives that fit simultaneously in the Multibay Expansion Base.
With this configuration, a mobile user can have an unprecedented 5.4 GB of
hard-drive capacity with any of the LTE 5000 models. LTE 5000 users can
also add additional CD-ROM devices or diskette drives. And, when the LTE
5000 is docked, customers can charge up to four batteries.

The expansion base also includes two Type III PCMCIA slots, integrated
Ethernet, integrated stereo speakers, an infrared communication port, a
MIDI/Game Port plus a dedicated space for the MPEG and TV Video Adapter
option.

With an IrDA (Infrared Data Association) compatible infrared port on both
the notebook and the docking station, Compaq can now give users
point-to-point communication with other infrared equipped devices for
wireless printing, file transfer and drive synchronization.

A MULTIMEDIA WHIZ

To meet the growing demands for customers who make presentations
on-the-road, the LTE 5000 includes the most extensive combination of
multimedia features offered in a notebook:

* Integrated Motion Video Acceleration for smoother, crisper image
  flow and scaling and improved audio synchronization.
* An MPEG solution, including MPEG decompression, playback and image
  capture, supports video capture of AVI (Audio/Video Interleaved)
  files at full motion video speed. "TV Out" functionality
  allows customers to display images on a standard television for
  large audience viewing.
* Integrated CD-ROM drive that supports both 5.25 inch and 3.5 inch
  formats for audio, video and photo CDs.
* 16-bit digital stereo audio with integrated stereo speakers and
  the Compaq Sound System utility provides a compact, easy-to-carry
  multimedia system.

NOTE 1: All prices are estimated selling price; actual prices may vary.

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.
 
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