COMPAQ LAUNCHES LTE 5000, THE ULTIMATE "WISH LIST" HIGH PERFORMANCE MODULAR
NOTEBOOK -- SELECTED AS MICROSOFT'S PLATFORM OF CHOICE FOR WINDOWS 95

HOUSTON, August 21, 1995 -- Offering customers one of the most powerful and
flexible notebooks in the industry, Compaq Computer Corporation (NYSE:CPQ)
today introduced the LTE 5000, a high-performance family of Pentium
processor-based notebook PCs that feature an innovative modular design and
breakthroughs in flexibility, true 64-bit architecture, and featuring the
industry's largest display and highest hard drive storage.

"The new LTE 5000 is the ultimate business tool for mobile professionals
who require the highest performance, most flexible notebook for advanced
or specialized applications," said Hugh Barnes, senior vice president and
general manager, Portable PC Division. "Our customers have described their
notebook wish list, including the ability to easily customize their
portables to meet their individual needs, and we've designed the LTE 5000
to exceed their expectations. Whether it's an integrated CD-ROM drive, a
second hard drive, a diskette drive or even a second battery, as their
needs change during the day or even over the life of the product, the LTE
5000 can be instantly reconfigured to meet their needs. Each of the
devices are also shared with the fully modular MultiBay expansion base,
extending the system's total flexibility. Notebook users will find superb
power and performance, flexibility, extensive multimedia capabilities and
ease-of-use with the new LTE 5000."

The new LTE 5000 will be seen publicly for the first time at the Windows 95
launch on August 24 at Compaq's demonstration booth in the Business
Pavilion.

Microsoft's Platform of Choice for Windows 95

Underscoring its advanced capabilities and performance as the ideal
notebook for Windows 95, Microsoft selected the LTE 5000 as its portable
computer platform for demonstrating its new 32-bit operating system.
Beginning with the launch of Windows 95 on August 24, Microsoft will arm
its 400-person field sales force and engineering teams with the LTE 5000
to demonstrate to its customers the features and advances provided by
Windows 95.

"We are pleased to make the LTE 5000 available to our U.S. field sales and
engineering forces to demonstrate the benefits of Windows 95, Windows NT
and BackOffice to our customers," said Steve Ballmer, executive vice
president sales and support, Microsoft Corporation.

A Dream Machine

In the July 1995 edition of PC Magazine, its editors, technicians and
analysts must have had the LTE 5000 in mind when they designed the perfect
full-featured notebook PC: 11.3 inch screen; over 1.2 GB hard drive;
removable floppy disk and CD-ROM drives; a 90-MHz Pentium processor; 16 MB
of RAM; 256K processor cache; PCI local bus graphics; an infrared port for
wireless connectivity; an integrated pointing device; security features;
lithium-ion battery; PCMCIA slots; 16-bit wavetable-synthesis sound; 28.8
fax modem; and serial, parallel, docking station, keyboard and VGA speaker
ports.

The LTE 5000 introduces a number of technical innovations including its
front-loading MultiBay modular design. Without opening the notebook,
mobile professionals can quickly and easily add a CD-ROM drive, a second
hard drive, an extra battery or a 3-1/2 inch diskette drive, depending on
their unique and diverse needs. The LTE 5000 also offers outstanding
memory expansion -- up to 72 MB -- and hard drive capacity up to 2.7 GB,
all in an easy-to-carry notebook PC.

The Ultimate in Power and Performance

At the heart of the LTE 5000 is a powerful 64-bit architecture, backed by a
256K Level-2 cache, PCI local bus graphics and a 75-MHz or 90-MHz Pentium
processor. The new portables are also ready for Intel's next generation
Mobile Pentium processor. 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.

The Ultimate in Flexibility

The advanced modular design of the LTE 5000's innovative MultiBay offers
simple device customization through an easy-to-use front loading device
bay, providing mobile professionals with a variety of configuration
alternatives. With the simple push of a button, devices can be easily
exchanged through the front of the notebook, and a selection of modules
can be used to tailor the notebook's configuration:

* A removable CD-ROM drive which accepts both 5 1/4 inch and 3 1/2 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, for up to eight
hours of run time;

* 3-1/2 inch diskette drive;

* A Weight Saver Module which allows users to reduce notebook travel
weight.

With the level of flexibility offered by the LTE 5000, MIS managers can
utilize a single notebook platform, building custom systems for their
diverse organizations. Also, a single notebook can be shared by several
occasional users who each have their own hard drives.

Industry's First Modular Expansion Base for the Office

The LTE 5000 includes the industry's first modular expansion base, adding
to its useful innovation. With the Multibay Expansion Base, modular
devices can be shared between the notebook and the base, extending the
system's flexibility and functionality. In addition to the modular device
support for two additional hard drives or CD-ROM devices and an additional
diskette drive, when the LTE 5000 is docked in the expansion base,
customers can simultaneously charge up to four battery packs.

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-1 (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.

Picture Perfect Multimedia Features

To meet the growing demands for customers who make mobile presentations,
the LTE 5000 includes the most extensive combination of multimedia
features offered in a notebook, including integrated hardware-based Motion
Video Acceleration for smoother, crisper image flow and scaling. Advanced
users will appreciate the portable MPEG (Motion Picture Experts Group) and
TV Video Adapter option for use on the road or in the office. Offering a
complete MPEG solution, including MPEG decompression, playback and image
capture, it also supports video capture of AVI (Audio/Video Interleaved)
files at full motion video rates. For mobile presentations, "TV Out"
functionality allows customers to display images on a standard television
for large audience viewing.

The integrated CD-ROM drive supports both 5-1/4 inch and 3-1/2 inch data
formats for audio, video and photo CDs. In addition to the large high
resolution displays, the LTE 5000 includes 16-bit digital stereo audio
with integrated stereo speakers and the Compaq Sound System providing a
compact, easy-to-carry multimedia system.

Superior Ease of Use

Compaq's ongoing commitment to increase ease-of-use is exemplified by the
modular devices that are simple to change, making customization a snap. In
addition, the low profile expansion base, offering a natural keyboard
tilt, provides a more comfortable office work environment.

The new EasyPoint II pointing device located in the center of the keyboard,
with centrally located left and right mouse buttons, lets users keep their
hands on the keyboard while using the pointing device.

Windows 95 Ready

Building on its role as the Lead Systems Partner for Windows 95, Compaq has
integrated features into the LTE 5000 that build upon Microsoft's new
operating system. Compaq has worked closely with Microsoft throughout the
development of Windows 95, investing more than 50 man-years in joint
testing and development. As a result, Compaq customers can expect a higher
level of functionality, ease-of-use, and software integration when using
the Windows 95 operating system and the LTE 5000 family of notebook PCs.

Availability and Pricing

Compaq will begin worldwide shipping and announce final pricing of the new
LTE 5000 worldwide in September.

The LTE 5000 family is the first line of notebook PCs developed through the
joint development relationship with Inventec Electronics Corporation of
Taiwan.

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 18003451518.
 
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