COMPAQ SUES PACKARD BELL FOR FALSE ADVERTISING

HOUSTON, April 10, 1995 -- Compaq Computer Corporation (NYSE:CPQ) today
filed suit alleging that Packard Bell Electronics, Inc. is misleading the
public by selling, as new, products that contain used components. The
lawsuit claims that Packard Bell fails to disclose to potential purchasers
of their products that they may be buying a computer that contains used
components.

According to the Complaint, which was filed in Federal District Court in
Wilmington, Delaware, Packard Bell disassembles many of its returned
products and then uses these parts in the assembly of certain products
which are then sold as new.

Corporate 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 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 and Prodigy, or by calling
1-800-345-1518.

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