Xerox Grants Compaq Exclusive Worldwide Rights for New Easy-to-Use
Software

TabWorks from XSoft division of Xerox provides intuitive user interface for
Windows-based PCs

PALO ALTO, Calif., October 18, 1993 -- XSoft, a division of Xerox
Corporation, today announced TabWorks, a new software package that
provides an intuitive user interface for Windows-based PCs. XSoft also
announced that it has granted Compaq Computer Corporation (NYSE: CPQ)
exclusive worldwide rights to TabWorks.

As part of its goal of making Compaq PCs the easiest to use in the
industry, Compaq will pre-install TabWorks on new personal computers to be
announced in the future, and eventually on most Compaq PC products. Compaq
will also sell TabWorks separately through its DirectPlus toll-free number
and through Compaq authorized resellers.

TabWorks makes it easier for users to work with their Windows PCs by
providing a simple and intuitive way to organize their work and locate
documents. An enhancement to the Windows program manager, TabWorks is
designed to look and function like a three-ring binder, using familiar
components like tabs, pages, and a dynamic Table of Contents to manage
icons that represent files and documents..

XSoft developed TabWorks based on research done in 1987 by Stuart Card and
Austin Henderson of the Xerox Palo Alto Research Center (PARC). They
published a whitepaper entitled "Catalogues: A Metaphor for Computer
Application Delivery," which presented the concept for using the catalog
or NoteBook metaphor for the delivery of application software. XSoft used
this as a basis for developing TabWorks.

"In the search for the most intuitive ways for people to interact with
their computers, Compaq evaluated a number of alternatives and found
TabWorks would best meet our customers' needs, " said Compaq vice
president Lorie Strong. "TabWorks offers not only a simple and elegant
interface, but also a variety of ways to make handling documents and
applications more efficient and effective. It plays an important role in
Compaq's goal of delivering the industry's easiest-to-use PCs."

Dennis Andrews, President of XSoft, said, "Compaq has a well-deserved
reputation for leadership in the personal computer industry. lt is now
paving the way for greater ease of use, an area of primary focus to Xerox
dating back to the development of the Star interface over a decade ago. By
including TabWorks as an integral part of its new, easy-to-use product
line, Compaq will give PC users throughout the world the opportunity to
work with their computers in a more intuitive and familiar way than ever
before."

TabWorks Ease of Use

TabWorks lets the organizational habits and needs of the individual user
supersede the structure of the computer. Built around the familiar and
intuitive notebook metaphor, TabWorks allows users to organize their work
in any way that makes sense to them -- by project, function, or even
client. Documents and applications are easily and quickly accessible on
the pages of the user's personalized notebook, and TabWorks can launch
them automatically. By giving the user direct document access, TabWorks
eliminates the need for the user to know where a document exists in the
directory structure or even what application is used to run it.

Pricing/Availability

TabWorks will be available by the end of October as a standalone software
package through Compaq DirectPlus and Compaq authorized resellers. An
introductory price of $49 will be offered through December 31, 1993, and
beginning January 1, 1994, the price will be $69. These are estimated
selling prices; actual prices may vary.

XSoft

Headquartered on a campus with PARC, the renowned Xerox research center in
Palo Alto, Calif., the XSoft division of Xerox was formed in July 1991 to
provide software that improves the way people use computers to create,
capture, manage and communicate ideas and information in documents.

XSoft's product family includes document management and workflow solutions,
user-interface utilities, office productivity packages, content-based
search and retrieval systems, and structured-document publishing
applications. In addition, XSoft enables workgroup collaboration through a
series of shared document services products. The company also offers
extensive product support, training and consulting services. XSoft's
products and services are available on multiple operating systems,
networks, and computer platforms, and are sold through a worldwide network
of direct sales and reseller partners.

XSoft, 3400 Hillview Ave, Palo Alto, CA 94304
415-424-0111,  fax 415-813-7162

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