Pfeiffer Predicts "New World of Computing" With PC Servers in Nearly Every
Business, School, Home

HOUSTON, October 17, 1995 -- Outlining his vision of computing in the year
2000, Compaq Computer Corporation (NYSE:CPQ) president and CEO, Eckhard
Pfeiffer predicted that by the end of the decade there will be networked
PC servers "in nearly every office, manufacturing facility, store, school
and home."

In his keynote address at Innovate Forum 95, a gathering of more than 4,000
business-computer users, computer suppliers, and industry observers,
Pfeiffer said, "As we head toward the millennium, the boundaries will
dissolve between private and public networks, between personal and
corporate computing ... and between the computer and the network. Wherever
you may be -- with whatever kind of device you have -- the network will
adapt to your level of interest and to the capabilities of your device."

Pfeiffer predicted the evolution of a new "distributed enterprise computing
model" in which "corporations would run their businesses using an array of
hundreds, even thousands, of specialized applications servers -- mail
messaging servers, gateway servers, decision support servers, video, and
Internet servers."

According to Pfeiffer, a key to this new wave of computing is a paradigm-
shift from expensive, proprietary computers to powerful and secure servers
based on industry standards, a move that will provide corporations with
affordable computers able to handle applications critical to their
businesses.

Pfeiffer said that Compaq -- the company that launched the first PC server
and remains the leading supplier of these powerful networked computers --
will emerge as a "new breed of computer company" focused on this new
distributed enterprise computing model.

"You've known Compaq as the portable PC company ... as Compaq the PC
company," said Pfeiffer. "We are rapidly becoming Compaq 'the computer
company' -- the computer company for the enterprise and the home, the
computer company you can build your future on."

Pfeiffer said that Compaq is the ideal vendor for distributed enterprise
computing, building on its industry leading hardware platform and its
alliances with key enterprise computing partners, such as Microsoft,
Novell, Oracle and SAP.

Executives from all four companies -- including Microsoft Chairman and CEO
Bill Gates, Novell Chairman and CEO Bob Frankenberg, Oracle Executive Vice
President Raymond Lane and SAP Vice Chairman Hasso Plattner -- will join
Pfeiffer this week to address Innovate Forum 95 attendees gathered in
Houston.

Pfeiffer's remarks came the day after a sweeping enterprise computing
announcement that included new Compaq enterprise servers, support
programs, and business relationships aimed at strengthening the company's
position in the enterprise computing market.

"Compaq is much more than a PC company," said Pfeiffer. "We are on the
threshold of becoming a computer company -- but not a conventional
computer company."

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 throughout the
world. 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 1-800-345-1518.
 
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