Compaq and Intel Announce Strategic Alliance in PC-Based Video
Conferencing

ANAHEIM, Calif., October 26, 1995 -- Compaq Computer Corporation (NYSE:CPQ)
and Intel Corporation today announced a strategic alliance to co-market
integrated desktop conferencing products, and have established teams to
define a co-development strategy. The companies are in discussions to
formalize an agreement for Compaq to offer its customers standards-based,
real-time conferencing solutions for the business environment based on
Intel's ProShare Personal Conferencing technology. More than just a point
product, Compaq's relationship with Intel is expected to result in a
broad, multi-product array of interoperable conferencing solutions.

The companies have outlined a plan to deliver integrated conferencing
solutions, beginning with the co-marketing of off-the-shelf products. All
of Compaq's conferencing products will be interoperable and comply with
international telecommunication standards and industry standard PC
operating systems. Compaq has chartered a team to work with Intel to
develop a plan to incorporate ProShare technology in its offerings.

"Any Compaq PC can become a personal conferencing PC," said John T. Rose,
senior vice president, Desktop Division, Compaq Computer Corporation. "Our
umbrella strategy is to incorporate these dynamic capabilities into every
Compaq commercial desktop product. We believe ProShare technology is one
that provides robust and innovative video and data conferencing
capabilities for our customers."

"Intel and Compaq share a goal of delivering low-priced, high performance
conferencing solutions to PC users," said Frank Gill, senior vice
president, Intel Communications Group. "By fully integrating conferencing
capabilities into the PC, Compaq and Intel are taking a major step in
delivering audio and video processing conferencing solutions."

"The marriage of Compaq PC technology with Intel's ProShare technology is a
winning combination," said industry analyst Cheryl Currid of Currid &
Company. "The ensuing products may well change the way the world
communicates ."

Intel's ProShare personal conferencing family includes a full range of
interoperable data and video conferencing products, including the ProShare
Video System 200 which enables Intel486 and Pentium processor-based PCs to
conduct video and data conferences. Additional information on the Intel
ProShare Personal Conferencing products is available from Intel's FaxBACK
Information Service at 800-525- 3019 and on Intel's World Wide Web site,
http://www.intel.com/comm- net/proshare/index.html.

Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer, networking and communications products.

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 throughout the
world. 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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