HOUSTON, June 1, 1994 -- In a move aimed at continuing its successful strategy to increase marketshare and industry leadership, Compaq Computer Corporation (NYSE:CPQ) today announced price reductions on several of its most popular notebook, desktop and server products, ranging from four to 29 percent, and up to 34 percent on select options.

Highlighting today's announcement is the price reduction on the Contura Aero, the company's first subnotebook PC, which now starts at $999 (NOTE 1). Compaq also lowered prices on its popular multimedia Presario CDS models, which are now available for as low as $1,299 (NOTE 1), and on Pentium-based ProSignia and ProLiant 1000 models by as much as 18 percent.

"Compaq is committed to total customer satisfaction -- offering high quality products, at a great value, that are available through a wide variety of channels," said Ross Cooley, Senior Vice President, Compaq Computer Corporation. "With this move, we continue to fuel momentum for our products and set the pace for value leadership in the PC industry."

Price Reduction Highlights

The Compaq Contura Aero family has been reduced in price by up to 29 percent. Prices now range from $999 (NOTE 1) for the monochrome Aero 4/25 Model 84 to $2,399 (NOTE 1) for the color Aero 4/33C Model 250, making these popular subnotebooks available to a broader base of customers who require a lightweight and affordable portable PC. Selected PCMCIA options for the Contura Aero family were also reduced. Lowered by 12 percent, the external PCMCIA diskette drive now sells for $159 (NOTE 1). Compaq also lowered prices on the Contura 4/25CX line by up to 19 percent, with prices now ranging from $2,799 (NOTE 1) to $2,999 (NOTE 1).

Prices of most models of the highly successful Presario multimedia family have been reduced by as much as 13 percent. Standard with a wealth of features including a CD-ROM drive and comprehensive software library, these popular desktops are now more affordable than ever before. For example, the Presario CDS 633 is now priced at $1,299 (NOTE 1), and the Presario 833CDS minitower models are priced at $1,599 (NOTE 1).

To ensure business users continue to receive the best performance at the lowest cost, Compaq reduced the prices on all models of its award-winning ProSignia and ProLiant 1000 servers. Pentium-based ProSignia 5/60 and ProLiant 1000 5/60 models were reduced by up to 18 percent, and the ProLiant 1000 5/60 Model 1050 now sells for about $6,500 (NOTE 1). The new prices for the ProSignia line range from about $4,400 (NOTE 1) to $8,400 (NOTE 1). Compaq also announced price reductions on server-related hard drives by 18 percent and memory modules by as much as 34%.

Prosignia Enhancements

Compaq also announced that it enhanced its entire ProSignia line of servers, while reducing prices. All models of the ProSignia line now come standard with an internal Tray Load CD-ROM Drive and Compaq Insight Manager v2.1. These additions make it easier for users to manage their server environments and install their own network operating systems with SmartStart.

Company Background

Compaq Computer Corporation is a world leader in the manufacture of servers, and desktop, portable, and notebook personal computers. Founded in 1982, the Company reported 1993 worldwide revenues of $7.2 billion. Compaq products are sold and supported in more than 100 countries through a network of more than 21,000 Compaq marketing partners. Compaq also sells directly to customers through Compaq DirectPlus at 1-800-888-5858. For information on Compaq products, call 800-345-1518. Users needing technical support for Compaq products can call 1-800-OKCompaq.

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