NOTE: All prices are estimated selling price; actual prices will vary.

HOUSTON, February 7, 1994 -- In a move intended to extend its notebook leadership position, Compaq Computer Corporation (NYSE:CPQ) today announced the Compaq Contura Aero -- the least expensive, fully featured subnotebook PC family available today. The Compaq Contura Aero 4/25, which comes with a monochrome display, weighs only 3.5 pounds, provides up to six hours of battery life with rechargeable Duracell battery option on monochrome models and starts at $1,399. Compaq Contura Aero 4/33C models, which come with a color display, start at $2,199.

The "no compromise" Compaq Contura Aero -- Compaq's smallest, lightest and most affordable notebook PC -- is an exceptional value. Unlike first generation subnotebook PCs, which offer limited power and expandability, small storage capacities, and hard-to-read displays, Compaq's first subnotebook PC sets new standards. The Compaq Contura Aero products are driven by powerful Intel 486 processors, provide up to 250 megabyte hard drives and bright backlit screens, and come with a host of competitive features.

Designed for the mobile professional who needs a lightweight, compact notebook, the Compaq Contura Aero is approximately 45 percent lighter and 33 percent smaller than most notebook PCs. Because of its small size and low weight, the Compaq Contura Aero can easily fit into a briefcase or overnight bag and be carried everywhere.

The Compaq Contura Aero 4/25 provides up to six hours of battery life with rechargeable Duracell battery option on monochrome models. -- almost twice as long as the average notebook PC -- with an optional standard-sized NiMH (Nickel Metal Hydride) rechargeable battery, making this subnotebook ideal for long distance trips. Compaq was the first company to announce plans to feature Duracell standard-sized battery packs in its future generation of portable computers (announced in November 1993) and is the first PC company to offer a product that runs on these batteries. The batteries will be readily available at retail locations worldwide by the middle of this year.

"With this announcement, Compaq is going after the fastest-growing segment of the notebook PC market -- subnotebooks -- with very competitive products that set a new standard," said Jim Hartzog, Senior Vice President and General Manager, Portable PC Division, Compaq Computer Corporation. "Since the Compaq Contura Aero is so light and small, yet offers full notebook functionality, we expect it to fill a gap in the industry today and meet the needs of a diverse range of customers."

Easy To Use, Right Out Of The Box

Providing a wealth of features and supporting industry-first convenience options, the Compaq Contura Aero Family was designed to be easy to use. The energy efficient notebooks come with a brilliant STN backlit VGA display (8-inch on monochrome models, 7.8-inch on color models), 4 megabytes of memory expandable to 12 megabytes and hard drives ranging from 84 to 250 megabytes. They also feature a built-in trackball pointing device, a comfortable touch-typeable keyboard with a palm rest, and a PCMCIA (Personal Computer Memory Card International Association) Type II slot.

The PCMCIA slot, built around the emerging PCMCIA standard, provides customers true plug and play, allowing them to use off-the-shelf credit card sized options such as modems and storage cards. Compaq has an innovative PCMCIA implementation, not available from other manufacturers, which features automatic configuration of PCMCIA cards when they are inserted or removed, and a pop-up Windows user-interface, which describes any configuration activity after it occurs.

The Compaq Contura Aero products support more than 145 PCMCIA cards that have been tested at the Compaq PCMCIA compatibility lab. These compatible cards represent the technology of more than 50 different companies. Also supported is the new SpeedPaq 14.4 PCMCIA Data/Fax and Cellular modem from Compaq. When connected to a Motorola or Nokia cellular telephone, this modem allows customers to transmit data and receive faxes, providing easy-to-use yet powerful wireless communication.

Compaq also introduced today another industry first -- an external floppy drive option -- which connects to the notebook through the PCMCIA slot. The floppy drive does not require an external power source, making it very easy to travel with on business trips.

Another new option is a Desktop Convenience Base, aggressively priced at $99. The base replicates the unit's serial and parallel ports, and provides video, mouse and keyboard ports, so that peripherals, such as monitors or keyboards, can be easily and quickly connected or disconnected. It also provides a cradle for charging an extra battery pack while the unit is in use, and an extra AC power supply.

The Compaq Contura Aero products meet the Environmental Protection Agency Energy Star requirements and provide unique power management features such as instant-on, which allows the notebook to be left in standby mode for up to 7 days (168 hours), and picked up exactly where it was left, with all the information saved.

Aimed At Wide Range Of Customers

The Compaq Contura Aero notebooks are intended for a wide variety of customers, ranging from business executives and professionals, such as sales reps and accountants, who travel frequently and need a lightweight notebook PC, to small business owners and individual consumers who need an affordable PC to carry between the office and home or as the main household PC for the student or the entire family.

Each Compaq Contura Aero notebook comes preinstalled with DOS 6, Windows 3.1, TabWorks, Lotus Organizer -- an integrated package with a calendar and planner -- WinLink File Transfer software and a serial cable. The Windows-based file transfer software, with drag and drop capabilities, allows customers to easily update and keep files current between their subnotebook and desktop PC. In addition, models aimed at individual consumers that are sold through computer superstores, office product superstores and consumer electronic stores include Microsoft Works and Microsoft Entertainment Pack.

The Compaq Contura Aero 4/25 notebook PCs, which are equipped with a 486SX/25MHz processor and have a monochrome display, are available now worldwide through more than 20,000 Compaq authorized resellers, including consumer electronic superstores and nationwide retail locations. The Compaq Contura Aero 4/33C models, which run on a powerful 486SX/33MHz processor and have a color display, are expected to be available by the end of this quarter at the same locations.

Backed By Compaq

Like all Compaq products, which are designed, engineered and manufactured by Compaq and pass rigorous reliability testing, the Compaq Contura Aero notebook PCs are backed by Compaq's comprehensive service and support programs, including a three year limited worldwide warranty, 24-hour, seven day a week telephone support for the lifetime of the product, and a variety of other support programs.

Company Background

Compaq Computer Corporation is a world leader in the manufacture of servers, desktop and portable personal computers. Founded in 1982, the Company reported 1993 worldwide sales of $7.2 billion. COMPAQ products are sold and supported in more than 100 countries through a network of more than 20,000 Compaq marketing partners. Compaq also sells directly to customers through COMPAQ DirectPlus at 1-800-888-5858.

Compaq offers a broad range of service and support programs, including free technical support through the Customer Support Center, product warranties, and product information on CD-ROM. Taking a leadership role in protecting the environment, Compaq has eliminated CFCs from its worldwide manufacturing operations and undertakes ongoing environmental programs, including energy efficiency, recycling, design for environment, waste reduction and environmental auditing. For customer support and information, call 1-800-345-1518.

Compaq, Contura, Systempro, Deskpro Registered U.S. Patent and Trademark Office. Aero, Prolinea, Pagemarq, ProSignia, QVision, trademarks of Compaq Computer Corporation. DirectPlus is a service mark of Compaq Computer Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.