COMPAQ DROPS PROSIGNIA 300 PRICES -- INDUSTRY PACESETTER DEMONSTRATES
PRICE/PERFORMANCE LEADERSHIP COMMITMENT WITH PRICE REDUCTIONS OF UP TO 16
PERCENT

HOUSTON, May 31, 1995 -- Underscoring its corporate commitment to be the
price/performance leader in the server market segment, Compaq Computer
Corporation (NYSE: CPQ) today announced price reductions of up to 16
percent on its widely popular workgroup-class server, the Compaq ProSignia
300. According to industry analyst firm, International Data Corporation,
Compaq has 29 percent of the entire PC server market and 71 percent of the
super-server market, which includes enterprise-capable systems such as the
recently introduced Compaq ProLiant 4500.

Price Reductions (NOTE 1)

The ProSignia 300 is now priced well below competitive products, according
to Compaq estimates. For example, the ProSignia 300 5/90 Model 1050 --
configured with a 1.05 GB Fast-SCSI-2 Hard Drive, 16 MB RAM, integrated
32-Bit Ethernet NIC, 256 KB secondary Cache, and CD-ROM -- will now be
priced at $3,999, and is about:

 32 percent below the est. street price of an IBM PC Server 320,
 10 percent below the est. street price of a DELL PowerEdge SP-2 5/90,
 10 percent below the est. street price of a DEC Prioris XL 5/90,
  9 percent below the est. street price of an AST Manhattan V 5/90.

The ProSignia 300 5/75 Model 1050 -- configured with a 1.05 GB Fast-SCSI-2
Hard Drive, 16 MB RAM, integrated 32-Bit Ethernet NIC, 256 KB secondary
Cache, and CD-ROM -- will now be priced at $3,549, and is about:

 14 percent below the est. street price of an IBM PC server 300 5/60
 11 percent below the est. street price of an HP NetServer LC 5/66

Price reductions on all ProSignia 300 models are effective immediately.

NOTE 1: All prices are estimated street prices; actual prices will vary.
All comparisons are based on comparably equipped products from each
manufacturer.

The ProSignia 300: A Mainstream Workgroup Server Priced Like a Desktop PC

Introduced in February 1995, the ProSignia 300 server incorporates high-end
server dependability and manageability features such as ECC (Error
Checking and Correcting) memory, ASR (Automatic Server Recovery)
technology, Compaq SmartStart, Compaq Insight Manager, standard CD-ROM and
optional rack-mountable platform -- previously found only on higher-end
server products. The ProSignia 300 is up to 41 percent faster (NOTE 2)
than competitive systems and is targeted primarily at price-sensitive
medium-to-small businesses, as well as small workgroups and remote sites
within large companies, that use Novell's NetWare operating system.

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 DirectPlus 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 18003451518.

NOTE 2: The ProSignia 300 5/75, configured with a 75 MHz Pentium processor,
the Integrated Fast-SCSI-2/P PCI Controller, 16 MB RAM and four 1 GB hard
drives, was tested using the standard NetBench 3.0 Disk Mix Test.

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