COMPAQ INTRODUCES NEW 120 MHZ PROSIGNIA 500 -- NEW WORKGROUP SERVER
REINFORCES LEADERSHIP POSITION IN MAINSTREAM NETWARE MARKET

HOUSTON, June 20, 1995 -- Compaq Computer Corporation (NYSE: CPQ) today
announced the availability of new 120 MHz Pentium models of the Compaq
ProSignia 500, which deliver breakthrough price/performance for Novell
NetWare servers. Reinforcing its price/performance leadership commitment,
Compaq said it would offer the new ProSignia 500 models at the same price
as the current 90 MHz Pentium models, while making significant
enhancements to the new products. In addition, Compaq announced price
reductions of up to 11 percent on all models of the Compaq ProLiant 1500
and a NetWare 4.1 promotion.

According to industry analyst firm International Data Corporation and
Compaq estimates, in the first quarter of 1995 Compaq gained share and led
the industry by shipping 37 percent of all the file/print and
multiprocessing servers worldwide. Also according to International Data
Corporation, Compaq's share in the super-server market, which includes
enterprise-capable systems such as the recently introduced Compaq ProLiant
4500, reached over 70 percent. The addition of the 120 MHz Pentium models
of the ProSignia 500 aggressively positions Compaq to maintain and
strengthen its leadership in the mainstream server business.

As the workhorse in today's networked business environments, the ProSignia
500 family of servers provides the unbeatable price/performance value
customers demand, said Gene Austin, vice president marketing, Compaq
Systems Division. Today's announcement gives our large installed base of
NetWare customers another outstanding workgroup server on which to run
critical business operations and demonstrates our ongoing commitment to
maintain our lead in the mainstream server business.

New 120 MHz ProSignia 500

Starting at $4,099 (NOTE 1), the 120 MHz Pentium models of the ProSignia
500 deliver unprecedented price/performance for NetWare environments,
integrating the second-generation 120 MHz Pentium processor and adding
Error Checking and Correcting (ECC) memory as a standard feature while
extending maximum memory support up to 208 MB. Like all ProSignia servers,
the new ProSignia 500 models are optimized and designed around Compaq's
TriFlex/PCI system architecture, which improves overall server performance
by optimizing processing concurrency among the processor, memory and
input/output subsystems. Customers benefit from this technology by
receiving faster system response times, which means improved productivity
for all network users.

The new ProSignia 500 models offer Full-Spectrum Fault Management, a set of
features typically found only on high-end servers. These high-end features
include: Fault Prevention which keeps errors from occurring; Fault
Tolerance which prevents errors from disrupting the operation of the
server; and Fault Recovery which helps return a server to operation after
a fault disrupts service. Compaq pioneered these dependability and
reliability features with the introduction of the first ProSignia back in
October 1992.

* Fault Prevention - Compaq Insight Manager, Server Environment Tracking,
Disk System Tracking, ECC Memory

* Fault Tolerance - RAID Controller, On-Line Spare, UPS (optional)

* Fault Recovery - Automatic Server Recovery (ASR), Server Health Logs,
Pre-Failure Warranty.

With today's announcement, Compaq enhanced the overall dependability of the
ProSignia 500 family by including ECC memory to the already extensive list
of fault management features found on all ProSignia servers (NOTE 2).
Compaq is one of the few server vendors to include ECC memory as a
standard feature in this class of server.

This addition now brings ECC memory to most Pentium servers offered by
Compaq. ECC memory protects servers from memory errors that would normally
produce faults capable of interrupting normal server operation. ECC memory
not only detects these errors, but also corrects them, keeping networks
running without costly interruptions.

All Compaq ProSignia 500 servers come standard with Compaq SmartStart, the
Compaq utility for installing and configuring tested and reliable servers.
SmartStart has been enhanced to support the following operating system,
database and storage management software: Novell Netware, Novell UnixWare,
Microsoft Windows NT, SCO Unix, IBM OS/2, IBM LanServer, Cheyenne ArcServe
for NetWare and for Windows NT, Legato Networker, Oracle Workgroup Server,
Oracle v7.1, and Microsoft SQL Server v4.21a. Compaq Insight Manager,
which allows system management over the network or remotely, via modem, is
also a standard offering with all ProSignia servers. SmartStart v2.30,
also announced today, supports additional operating systems and database
software to that listed above. (See related announcement)

In addition to SmartStart, the new 120 MHz models of the ProSignia 500 come
standard with these key features: 120 MHz Pentium processor; 16 MB ECC
Memory, expandable to 208 MB using industry-standard SIMMs; integrated
32-Bit Fast-SCSI-2 controller and a 10 MB/s Ethernet controller.

Pricing (NOTE 3)

Today Compaq expressed its on-going commitment to remain the
price/performance leader in the server industry by announcing price
reductions of up to 11 percent on all models of the ProLiant 1500.
Previous pricing for a ProLiant 1500 5/75 Model 1 (NOTE 4) was $5,647.
Following today's price reductions, pricing for a ProLiant 1500 5/75 Model
1 will start at $5,059. Previous pricing for a ProLiant 1500 5/100 Model 1
was $6,353. Following today's price reductions, pricing for a ProLiant
1500 5/100 Model 1 will be $5,647.

NetWare 4.1 Promotion

Beginning today and running through September 30, 1995, Compaq said
customers who purchase any ProSignia 500 or any Compaq ProLiant 1500 can
take advantage of a promotion jointly sponsored by Compaq, Novell and
Cheyenne. When a customer purchases a ProSignia 500 or a ProLiant 1500 and
a new or upgrade license of Novell NetWare 4.1 through SmartStart, Compaq
will give the purchaser the following products free: 8 MB memory kit;
5-user Additive License for NetWare; Compaq TechNote on Migration from
NetWare 3.12 to NetWare 4; DS Standard Software Migration Tool; and 5-user
Cheyenne FaxServe product.

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 1-800-345-1518.

NOTE 1: Estimated selling price. Actual price will vary.

NOTE 2: 90 MHz models of the ProSignia 500 don't support ECC memory.

NOTE 3: All prices are estimated street prices. Actual prices will vary.

NOTE 4: The Model 1 versions of the ProLiant 1500 do not include hard disk
storage devices. All other standard product features are included.

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