COMPAQ BOLSTERS LEADERSHIP POSITION IN MAINSTREAM SERVER MARKET -- NEW 120
MHZ PROLIANT 1500 SETS PACE FOR AFFORDABLE, MISSION-CRITICAL SERVERS

HOUSTON, March 27, 1995 -- In a move to further extend its PC server market
share leadership, Compaq Computer Corporation (NYSE: CPQ) today announced
the new Compaq ProLiant 1500 5/120, a cost-effective, high-availability
server priced starting at under $12,749 (NOTE 1). Designed for deployment
as an affordable, mission-critical server with features once only found on
high-end servers, the new ProLiant 1500 5/120 is one of the first servers
(NOTE 2) to support Intel's 120 MHz Pentium processor (NOTE 3), which was
also announced today.

"Due to our strong supplier relationship with Intel, our engineering group
designed the ProLiant 1500 family of servers to support multiple
unannounced Pentium processors. This forward-looking product design makes
today's announcement possible," said Michael Lambert, vice president
marketing, Compaq Systems Division. "Forward-looking product designs such
as this help protect our customers' capital investment while offering the
latest in server technology, value and performance. Compaq remains
committed to enhancing and developing key industry alliances which add
value to our products and bring functional and bottom-line advantages to
our customers."

The ProLiant 1500 5/120

The ProLiant 1500 5/120 builds on all the advantages and features found in
the ProLiant 1500 family and provides customers with increased
performance, greater storage capacity, and enhanced data security. As with
all ProLiant 1500 models, the ProLiant 1500 5/120 is available in both
tower and rack-mountable configurations and includes these standard
high-availability features: ECC memory, TriFlex/PCI system architecture,
Fast-Wide SCSI-2, Automatic Server Recovery-2 (ASR-2), hot pluggable
drives and disk arrays. Redundant power supplies are available as an
option. The system processor on the ProLiant 1500 5/120 is board and chip
upgradable to faster Intel processors as they become available. When
customers need additional processor power, the ProLiant 1500 5/120 will
support the Compaq FlexSMP dual-processor boards, when announced. For
Compaq customers who already own a ProLiant 1500 server, an optional 120
MHz Pentium processor board upgrade will be available for purchase later
in the year.

UPS Price Reductions

In addition, Compaq today also announced the Compaq Rack-Mountable UPS
M2200 and price reductions of up to 25 percent on its line of UPS
(Uninterruptible Power Supply) products. The Compaq Rack-Mountable UPS
M2200, priced starting at under $2,309 (NOTE 4), is for customers in North
America operating Compaq Rack-Mountable servers at 208 volts. When
customers purchase a Compaq Uninterruptible Power Supply, they can redeem
a coupon with Deltec for a free copy of Deltec's LanSafe III software
utility. LanSafe III allows customers to handle a multi-server power shut
down from one single UPS. Compaq Uninterruptible Power Supplies (UPS) come
in both tower and rack-mountable models, address the weakest link in a UPS
-- the battery -- and are monitored and managed by Compaq Insight Manager
for all Compaq server products.

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

NOTE 1: Estimated selling price based on the ProLiant 1500 5/120 Model
4200A, which includes 16MB RAM, SMART SCSI Array controller, and 4 GB of
disk storage. Actual prices may vary.

NOTE 2: Compaq will announce a Compaq Deskpro XL PC with the new Intel 120
MHz Pentium processor once quantities become more readily available in
2Q95.

NOTE 3: The 120 MHz Pentium processor outperforms the 100 MHz Pentium
processor by up to 23 percent, according to the Intel iComp benchmark; 100
MHz=815, 120 MHz=1000.

NOTE 4: Estimated selling price; actual prices may vary.

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