COMPAQ INVESTS IN "BOOKS THAT WORK" SOFTWARE -- HOME IMPROVEMENT SOFTWARE
BUNDLED WITH NEW PRESARIO LINE

HOUSTON, Texas (Oct. 3, 1994) -- Compaq Computer Corporation (NYSE:CPQ)
today announced an investment in Books That Work, a publisher of
home-improvement/how-to software, marking Compaq's second equity
investment in a consumer software firm. Financial terms were not
disclosed.

As part of a strategic partnership between the two companies, Compaq is
bundling Books That Work's "Home Survival Toolkit" software with the
newfamily of home-oriented Compaq Presario PCs that were announced and
began shipping in the US on September 14. This move underscores Compaq's
commitment to make the Compaq Presario the ultimate home productivity
tool. Compaq is the exclusive PC company bundling this software title. In
addition, Compaq is including with its new multi-media Compaq Presario
models samples of two other titles from Books That Work -- "Design & Build
Your Deck" and "Get Wired!" Both companies intend to feature the other
company's products in select advertisements, promotions and
point-of-purchase displays at retail locations.

One current Compaq promotion incorporating Books That Work's home
improvement software features actor Richard Karn, co-starring as Al
Borland on the top-rated TV comedy Home Improvement, on a TV publicity
tour to promote the new Presario multimedia PCs on morning news and talk
shows throughout the United States. Interviews were conducted via
satellite from Los Angeles onSeptember 19th and additional appearances are
being scheduled for October 13th.

"Compaq's investment in Books That Work is part of our strategy to make PCs
an essential, easy-to-use tool in the home," said John Rose, Senior Vice
President of the Desktop PC Division, Compaq Computer Corp. "Books That
Work pioneered unique how-to software for the home while Compaq pioneered
PC hardware specifically tailored to the consumer; together we deliver
true utility to the home PC owner. This is one of a series of strategic
relationships Compaq is developing with leading software firms that offer
lifestyle benefits for the consumer."

In addition to the "Home Survival Toolkit," a full library of
family-oriented software comes bundled with the new Compaq Presario 500,
700 and 900 models, including Microsoft "Encarta" CD (encyclopedia);
Microsoft "Works for Windows" CD (word processing, spreadsheet with
charting, database with reporting and communications); Kidsoft software
for kids on CD -- "Crayola Art Studio", "Dream Team Early Math" and "Dream
Team Basic Spelling Tricks"; free trial memberships in America Online,
CompuServe, Prodigy and new Imagination Network on-line services; "The
Even More Incredible Machine" (puzzle game); and "Quicken for Windows
Special Edition" for managing finances.

Compaq 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 31,000 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 their Compaq products can call 1-800-OKCompaq.

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