COMPAQ EXTENDS POPULAR PRESARIO FAMILY OF MULTIMEDIA CONSUMER PCS
PRESARIO 524 CDS GIVES HOME USERS INCREASED POWER AND PERFORMANCE

LAS VEGAS, January 5, 1995 -- Building upon its Compaq Presario 500 Series
of "all-in-one" consumer PCs, Compaq Computer Corporation (NYSE: CPQ)
today added a new model to this successful family of multimedia PCs -- the
Compaq Presario CDS 524. The new Compaq Presario meets increasing needs
for power, performance and value by incorporating a 486DX2/66 MHz
microprocessor and eight megabytes of random access memory (RAM) standard.
The estimated street price of the Compaq Presario CDS 524 is $1,849. *

PC users looking forward to the availability of next-generation general
purpose software, such as Windows 95, and more robust educational and
entertainment multimedia titles will benefit from the significant increase
in speed and application performance that the new Compaq Presario CDS 524
offers.

Scheduled to be unveiled at the Consumer Electronics Show (CES) in Las
Vegas, the new model builds on the Compaq Presario family of feature-rich
home and home office PCs that have won awards from industry and consumer
publications. Most recently, Popular Science included the Compaq Presario
CDTV 520 in its 1994 "Best of What's New" awards for innovation and
achievement in science and technology; Popular Mechanics awarded the
Compaq Presario 500 Series with a 1994 "Design & Engineering" award; and
the Compaq Presario CDS 520 earned an "Awesome" rating from New Media
Magazine for its "fun, comfortable out-of-box experience" and its
easy-to-use, unique set of features that include speakerphone, telephone
answering functionality with voice mail boxes and audio CD capability.

"Compaq's success in the consumer market is owed in large part to our
commitment to listening to our customers and providing them with the right
products at the right time and at the right price," said Michael Norris,
Compaq Vice President, Consumer Products. "Home PC users now require the
advanced power of the Compaq Presario 524 CDS, enabling the whole family
to maximize the endless possibilities for home computing and fully
leverage today's most popular applications and games."

Compaq Presario Family of Home PCs

Launched in September of 1994, Compaq's complete line of Presario PCs
include the Compaq Presario 500 Series of "all-in-one" multimedia PCs with
integrated speakers, television capability and speakerphone; the Compaq
Presario 700 Series featuring multimedia capabilities in a traditional
desktop design; and the Compaq Presario 900 Series featuring power, speed,
multimedia and enhanced expansion capabilities in a minitower design.

Corporate Background

Compaq Computer Corporation is a world leader in the manufacture of desktop
and notebook personal computers and servers. 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
31,000 Compaq marketing partners. Compaq also sells directly to customers
through Compaq Direct Plus at 1-800-888-5858.

For Compaq Customer Support and Information, Call 800-345-1518.

* All prices listed are estimated selling prices,
  dealer prices may vary.

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