COMPAQ SELECTS NEXGEN AS ADDITIONAL SUPPLIER FOR HIGH PERFORMANCE
MICROPROCESSORS -- AGREEMENT WILL LEAD TO GREATER CHOICES AND SUPERIOR
VALUE FOR COMPAQ CUSTOMERS

HOUSTON, March 30, 1995 -- As part of its ongoing strategy to deliver a
wide array of attractive products to the PC marketplace, Compaq Computer
Corporation (NYSE: CPQ) today announced it has reached agreement with
NexGen, Inc. of Milpitas, California, for NexGen to provide high
performance 586- and higher-class microprocessors for future Compaq
products. NexGen will become Compaq's third microprocessor supplier, in
addition to Intel and Advanced Micro Devices (AMD).

"As 586-class processors have become 'mainstream' this year, this agreement
with NexGen will help Compaq to deliver high performance PCs that
represent a greater value to the PC marketplace," said John T. Rose,
senior vice president and general manager of Compaq's Desktop PC Division.
"The breadth of the Compaq product line is extremely appealing to
customers worldwide, and while each buyer has a different set of
requirements in a PC, all buyers appreciate value. As 586-class
technologies become more available from more suppliers, we will be able to
offer our customers just the right combination of features, performance
and value to meet each of their unique requirements," Rose explained.

Details of the agreement -- which includes the business relationship
between the two companies -- were not disclosed. Compaq has maintained an
investment in NexGen since 1990. The original investment (of an
undisclosed amount) was intended to spur the advancement of promising
microprocessor technologies.

"We are very pleased that Compaq -- the number one PC company in the world
with a deserved reputation for quality, reliability and compatibility --
is adding NexGen as a processor supplier," said Atiq Raza, president and
chief executive officer of NexGen. "Compaq's stamp of approval assures the
marketplace that Pentium alternatives like our Nx586 can help deliver
powerful products with superior value to important growing market
segments," he concluded.

As with AMD, Intel, and other strategic component suppliers, Compaq will
work closely with NexGen to assure the highest levels of quality,
reliability and compatibility that are synonymous with the Compaq brand.
Compaq desktop computers using NexGen 586-class microprocessors can be
expected during the next twelve months, however no further announcements
are being made at this time.

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.

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