COMPAQ LOWERS PRICES ON LTE ELITE AND CONTURA NOTEBOOKS

HOUSTON, June 5, 1995 -- Compaq Computer Corporation (NYSE: CPQ) today
reduced prices on the entire range of its high-performance LTE Elite
notebooks by up to 20 percent, and on select models of its value line of
Contura notebook PCs by as much as 17 percent. Price cuts are effective
immediately.

Earlier this spring, Compaq's entire notebook product line, including the
LTE Elite and Contura lines, won the 1995 Reader's Choice Awards in the
WordPerfect for DOS magazine, again demonstrating the value customers
place on Compaq products.

"In 1992 Compaq reset the industry's criteria for price, performance and
value, and today's announcement reflects our continued commitment to offer
a broad range of notebooks that exceed the customers' criteria for each,"
said Ross Cooley, senior vice president and general manager, Compaq North
America.

"Compaq continues to set the leadership pace for the PC industry, and
today's announcement adds merit to that claim."

The Compaq LTE Elite, the company's flagship portable PC line, offers
mobile customers all the features they require on the road. As an added
benefit, customers can take advantage of the LTE Elite's superb desktop
expansion capabilities which offer the ultimate in Plug and Play
functionality and VCR-style docking.

The Compaq Contura 410 series is the latest addition to the highly
successful Contura family, offering both consumers and commercial
customers the industry's leading combination of affordability,
performance, desktop capability and ease of use in a
full-function/full-size notebook PC. Compaq LTE Elite Price Reductions

Compaq's LTE Elite offers a wide choice of features, options and
portability for power notebook users, both on the road and in the office.
Compaq LTE Elite models, with price reductions up to 29 percent, now begin
at prices from $1,999 (NOTE 1), delivering even greater value to the
mobile professional. For example, a Compaq LTE Elite 4/40C Model 170, with
an Advanced Passive Color VGA Display and 4MB of memory was reduced from
$2,499 to $1,999. The Compaq LTE Elite 4/75CX Model 510, with an active
matrix color VGA display, 8 MB of memory and a 16K internal cache also
comes with a free SmartStation desktop expansion base in a promotion
opportunity which runs through June 30. Now priced at $4,799, the LTE
Elite 4/75CX offers customers an even better value with its combination of
a notebook and expansion option.

---------------------------------------------------------------------
                                                              Percent
Model                           New Price       Old Price     Savings
---------------------------------------------------------------------
LTE Elite 4/40C, Model 170      $ 1,999         $ 2,499         20%
LTE Elite 4/75CX, Model 510     $ 4,799         $ 5,499         13%
LTE Elite 4/75C, Model 340      $ 2,899         $ 3,299         12%
LTE Elite 4/75CXL, Model 810    $ 4,799         $ 5,699         16%
---------------------------------------------------------------------

Compaq Contura Family Price Reductions

Eight models in Compaq's Contura line of notebook PCs have also been
reduced in price by up to 17 percent, with prices now ranging from $1,799
to $2,499 (NOTE 1). For example, a retail model of the Contura 410C with 4
MB of memory was reduced from $2,399 to $1,999. The Contura 400CX,
featuring a DX2/40 processor 4MB of memory and an active matrix color VGA
display was reduced from $2,699 to $2,199.

---------------------------------------------------------------------
                                                              Percent
Model                           New Price       Old Price     Savings
---------------------------------------------------------------------
Contura 400C, Model 250         $ 1,799         $ 2,199         18%
Contura 410C, Model 250
(retail model)                  $ 1,999         $ 2,399         16%
Contura 410C, Model 350         $ 2,099         $ 2,499         16%
Contura 410CX, Model 350        $ 2,499         $ 2,999         17%
---------------------------------------------------------------------

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.

NOTE 1: All prices are estimated selling price. Reseller pricing may vary.

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