COMPAQ ESTABLISHES FIRST OFFICE AND SERVICE CENTERS IN SOUTHWEST CHINA

Chengdu, May 31, 1995 -- In a move to expand its service and support
throughout the fast-growing Chinese market, Compaq Computer Corporation
(NYSE:CPQ) today announced the opening of an office and two service
centers in Chengdu, located in Southwest China. The Chengdu office further
strengthens Compaq's commitment to the Chinese computer market. According
to IDC, Compaq is now the leading PC supplier in China with 22.7%
marketshare in total unit shipments for 1994.

"Over the last number of years, the Chinese market has been a high priority
in Compaq's global strategy, and we are delighted to be able to expand our
operations into the Southwest China market," said Mr Lim Soon Hock, vice
president and managing director of Compaq Computer Asia/Pacific. "Now that
Compaq has truly established its position in the Chinese market, which
represents the world's largest potential computer market, it is vital that
we continue to provide our customers with the quality of service they have
come to expect from Compaq."

"We recognize the strategic importance of the Southwest region of China and
the Chengdu office opening represents our continued commitment to our
growing base of customers throughout China," Mr Lim said.

"In order to provide our customers with quality service, Compaq currently
plans to set up 36 after-sales authorized service centers during the next
six months. These centers will be managed by highly qualified,
Compaq-trained technicians and service engineers. They will also be
equipped with the latest service tools and comprehensive spare parts,"
said Mr TC Hsi, managing director of Compaq Computer Hong Kong Limited,
Beijing Representative Office. "Moreover, the three-year Compaq warranty
service offered to users who buy their products through a Compaq reseller
enables our customers to benefit from Compaq's high-quality, after-sales
service."

Compaq's Other Developments in China

Compaq currently operates a 40,000-square-foot manufacturing facility in
Shenzhen, China. The operation, a joint venture with Beijing Stone
Corporation, began shipping products in August 1994.

Additionally, Compaq has established the Tsinghua University Training
Center in Beijing. One of the top educational institutions in China,
Tsinghua offers training on hardware architecture, operating systems,
networking and computer applications to personnel from the government,
corporations, institutions and the general public.

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 1-800-345-1518.

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