COMPAQ PLAYS KEY ROLE IN WINDOWS 95 LAUNCH -- HIGH VISIBILITY REFLECTS
COMPAQ'S STATUS AS LEAD SYSTEMS PARTNER FOR WINDOWS 95

REDMOND, Washington, August 24, 1995 -- Compaq Computer Corporation
(NYSE:CPQ), Microsoft's Lead Systems Partner for Windows 95, today
exhibited more than 80 products at the Microsoft Windows 95 announcement
event, including the new Compaq LTE 5000 notebook computer to be used by
the Microsoft sales force to demonstrate Windows 95 and Windows NT to
customers throughout the U.S.

Compaq, which has worked closely with Microsoft for more than a year in the
development and testing of Windows 95, is beginning to pre-install Windows
95 today. In addition, Compaq has been providing coupons for a free
Windows 95 upgrade for all Compaq desktop and portable products purchased
since June 24. Compaq has named Windows 95 the preferred operating system
for all its desktop and portable products.

The company is exhibiting both current and future products throughout all
pavilions at the Windows 95 announcement event, a greater presence than
any other participant except Microsoft. Products displayed include the new
Compaq LTE 5000; up to 60 Compaq Presario PCs for the home in the Consumer
Pavilion; the Compaq Deskpro and ProLinea in the Business Pavilion; the
Compaq Deskpro in the Education Pavilion; and the Compaq LTE Elite.

"Compaq congratulates Microsoft on the extraordinarily successful
completion and introduction of Windows 95. We are pleased to be a part of
such a landmark event, and we're looking forward to providing our
customers with the greatest Windows 95 solutions and support in the
industry," said Eckhard Pfeiffer, president and chief executive officer of
Compaq.

Lead Systems Partner for Windows 95

As Microsoft's Lead Systems Partner for Windows 95, Compaq has completed
the highest degree of testing and support in the industry for Windows 95.
The company has spent the equivalent of 50 man-years testing Windows 95
for compatibility and reliability, assuring customers that Compaq products
offer a smooth transition to Windows 95. In turn, Microsoft has used
numerous Compaq products to test beta versions of Windows 95 during the
development and test stages.

Compaq LTE 5000 Exhibited at Windows 95 Event

Compaq is exhibiting the newly announced Compaq LTE 5000 flagship notebook
product publicly for the first time at the Windows 95 event. The LTE 5000
is a new line of high performance modular notebook products with true
64-bit Pentium processing power, PCI local bus graphics and RAM expansion
to 72MB.

In addition, the LTE 5000 features a breakthrough modular design offering
simple customization for the ultimate in flexibility, giving customers
choices of integrated CD-ROM, up to 2.7GB of internal storage, support for
two batteries or a diskette drive. An MPEG and TV Video Adapter combined
with digital stereo audio and display-mounted stereo speakers provides
unsurpassed multimedia functionality.

Compaq is also exhibiting the industry's first modular MultiBay Expansion
Base for the Compaq LTE 5000, which shares interchangeable devices with
the notebook; includes storage expansion up to 5.4GB; and offers two
additional PCMCIA slots, integrated Ethernet and stereo speakers.

Microsoft's U.S. field sales and engineering forces will be using the LTE
5000 to demonstrate Windows 95, Microsoft Windows NT and Microsoft
BackOffice to customers throughout the country.

Microsoft Chooses Presario to Demonstrate Software

Up to 60 Compaq Presario PCs will be used to demonstrate new Windows 95
software and other applications in the Consumer Pavilion at the Windows 95
event. The Presario 992 minitower products feature Intel Pentium
microprocessors, quad-speed CD-ROM drives, 16 megabytes of memory and a
variety of software titles. Compaq recently reduced the price of the
Presario CDS 992 models to $2,399, reinforcing its position as the overall
value leader in the consumer segment of the PC market.

Compaq has worked extensively with Microsoft to ensure the compatibility of
Windows 95 with its Presario and the wide variety of software included on
every Presario model. In addition, Compaq demonstrated new hardware-based
Wavetable and MPEG technologies, for which complete driver support is
included in Windows 95. Hardware- based MPEG (Moving Picture Experts
Group) is highly superior to current software MPEG implementations in that
it enables smoother and faster full motion video and audio to be played on
PCs without sacrificing performance, thereby eliminating the delays
normally experienced with software-based video playback.

Intelligent Manageability

Compaq will be exhibiting its Deskpro desktop PC featuring Intelligent
Manageability in the Business Pavilion. Compaq introduced Intelligent
Manageability in March to make networked PCs easier to manage and less
expensive to own. These unique desktop management features support
improved asset, fault and security management. With the addition of
Windows 95, significant new fault management benefits will enable
diagnosis and prediction of IntelliSafe hard drive failures and
temperature abnormalities both locally and across the network.

The direct monitoring of the health and performance of Deskpros on the
network allows systems administrators to effectively manage assets,
minimize unplanned user downtime and greatly improve overall network
manageability.

Education Pavilion

Compaq will also display its popular Deskpro products in the Microsoft
Education Pavilion hands-on area. The Compaq Deskpro is ideal for the
education market because of its unique networking capabilities and its
combination of performance features, multimedia capabilities and enhanced
serviceability.

Compaq and Microsoft are co-sponsoring a nationwide seminar called HELP
95-96 to help educators integrate technology into the classroom. The
seminar addresses the importance of networking and illustrates how to use
and apply technology such as Windows 95 on Compaq computers in schools.

Compaq Internal Migration

Compaq has made a corporate commitment to Windows 95 not only for its
customers, but for the company's internal network as well. Today more than
1,000 Compaq employees are already using Windows 95 on their computers.

By the end of September, the company plans to transition 5,000 more
employees to Windows 95 and by the end of the year, 95 percent of Compaq
employees are expected to be using Windows 95. The transition will be
essentially 100 percent complete in the first quarter of 1996. This
aggressive corporate migration enables Compaq to quickly take advantage of
the increased productivity and lower internal support costs associated
with Windows 95.

The migration effort also enhances Compaq's customer support services by
giving the support teams valuable experience working with the new
operating system firsthand. To better assist customers with Windows 95
specific inquiries, a separate customer support phone line has been
established: 1-800-WIN95-45 (1-800-946-9545).

Compaq 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
products 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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