COMPAQ SUPPORTS INDUSTRY'S NEWEST AND MOST ADVANCED MULTIMEDIA TECHNOLOGY
FOR CONSUMER PCS -- NEW S3 CHIPSET WILL PROVIDE FAST GRAPHICS,
BREAKTHROUGH VIDEO AND AUDIO AT LOWER COST

SUNNYVALE, California, June 13, 1995 -- Raising the bar in multimedia
computing, Compaq Computer Corporation (NYSE: CPQ) today announced that it
will support the MPEG (Motion Picture Experts Group) standard by employing
S3's new Cooperative Acceleration Architecture -- a three-chip multimedia
solution for video and graphics -- in future Compaq Presario PCs. This
hardware-based implementation of MPEG technology will provide consumers
with TV-quality video, CD-quality audio and high-performance graphics at
affordable prices.

At a press briefing held today in Sunnyvale, California, Compaq, S3,
Microsoft and other industry leaders announced their support and
implementation plans for the open MPEG standard. Compaq announced that it
will feature the MPEG specification with S3's new multimedia accelerator
chipset in its consumer PCs for the holiday buying season.

"S3's breakthrough in video acceleration allows Compaq to offer the most
life-like multimedia PC experience available," said Rod Schrock, vice
president, Presario products, Compaq Computer Corporation. "Compaq
customers will soon be able to take advantage of MPEG full-screen video in
their Compaq PCs, with an array of entertainment and educational CD-ROM
titles, all at extremely attractive prices."

Hardware-based MPEG playback allows full-motion video and CD-quality audio
-- from a live source or CD-ROM -- to be played on PCs without sacrificing
CPU performance, thereby eliminating delays normally experienced with
software-based video playback. The result is consistent high-quality
multimedia that will allow consumers to seamlessly interact with the
latest CD-ROM software programs while enjoying remarkably smooth and
natural VCR-quality playback at a full 30 frames per second. The S3
solution also provides extensive graphics functionality that reduces
response time in interactive games and multimedia titles.

"The availability of high-quality multimedia playback, combined with strong
consumer interest will spur an explosion of MPEG-compatible CD-ROM
titles," said Rod Schrock, vice president, Presario products, Compaq
Computer Corporation. "This solution so dramatically improves the
lifestyle multimedia experience that we think all consumer PCs should
include it."

MPEG is an international digital video standard that enables independent
software vendors to develop titles and games that include industry
standard, full motion MPEG video scaleable to any window size or capable
of being played full-screen. To facilitate the development of
MPEG-compatible software, Compaq and S3 will host an ISV developers
conference in July to ensure the widest array of high-quality MPEG
applications for the PC.

Company Background

S3 Incorporated, based in Santa Clara, California, is dedicated to applying
acceleration technology to create a natural PC interface. A publicly held
company, S3 combines silicon and software to accelerate graphics and video
for leading PC platforms and operating environments.

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.

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
