COMPAQ AWARDED EUROPE'S LARGEST-EVER PC CONTRACT

HOUSTON, August 21, 1995 -- Compaq Computer Corporation (NYSE: CPQ) today
announced that it has been awarded a three-year contract by British
Telecom (BT) to supply more than 9,000 servers and desktop PCs per year, a
contract to be valued at more than $90 million, the largest PC contract
awarded to a computer company in Europe.

"The agreement with BT -- the largest ever for Compaq and the European
computer industry -- once again demonstrates Compaq's ability to meet the
challenges of industry leadership in customer satisfaction, innovation and
product quality," said Joe McNally, vice president and managing director
of Compaq Computer's UK subsidiary, "That we have won this contract over
major PC companies is an indication of Compaq's ability to provide and
support enterprisewide computer systems on a worldwide basis."

BT selected Compaq's Deskpro PCs for several reasons, including their
industry-leading Intelligent Manageability features that help lower costs
in a networked environment. Intelligent Manageability incorporates aspects
of hardware, firmware and software designed to efficiently inventory and
monitor PC hardware and software assets.

During the next three years, Compaq will provide BT a complete line of
Compaq desktops and servers, including Deskpros, ProSignias and
ProLiants.

"We chose Compaq following a detailed evaluation of products from all the
different manufacturers from a technical, commercial and customer
perspective," said Claire Garrett, desktop procurement, BT. "In
particular, Compaq was able to demonstrate ease of upgrade and
future-proofing as well as a high-level of support for the prime
contractor, Computacenter."

Compaq Background

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs and servers. Founded in
1982, Compaq 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 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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