COMPAQ AND MICROSOFT KICK OFF PLAN TO PROMOTE WINDOWS 95 ON COMPAQ PCS

HOUSTON (February 15, 1995) -- Compaq Computer Corporation (NYSE: CPQ) and
Microsoft Corporation (NASDAQ: MSFT) today announced the launch of a
worldwide Joint Marketing Plan that positions the two companies as the
lead partner for each others' products. In addition, it defines joint
marketing plans to promote the sale of Compaq personal computers with the
Microsoft Windows 95 operating system pre-installed.

"Together with Microsoft, we believe that the combination of Windows 95 and
innovative Compaq products bring new levels of ease of use, connectivity
and information management to our customers," said Eckhard Pfeiffer,
President and Chief Executive Officer of Compaq Computer Corporation.

"Because of the compelling features and customer benefits of Microsoft
Windows 95, we have designated Windows 95 the preferred operating system
for Compaq desktop and portable products and will pre-install Windows 95
on Compaq products as quickly as possible," Pfeiffer said.

Emphasizing the long-standing relationship between the two industry leaders
-- Compaq, the new worldwide leader of the personal computer industry, and
Microsoft, the worldwide leader in software for personal computers -- Bill
Gates, Chairman and Chief Executive Officer of Microsoft Corporation
added, "Microsoft and Compaq began working together in 1986 on the first
version of Windows and the first Compaq Deskpro/386. Today, Compaq and
Microsoft continue to make significant joint contributions to advance
industry standards, most recently the Plug and Play standard, a key
technology supported in Windows 95."

Throughout the year, the companies will continue to implement marketing
programs and sales activities to promote Windows 95 in combination with
Compaq products, such as sales training, technical support training,
professional workshops, and other joint promotional efforts.

"Having Compaq's support by providing Windows 95 on their PCs further
amplifies the Windows 95 message," said Brad Silverberg, Senior Vice
President of Microsoft's Personal Systems Division. "With Windows 95 and
many of the features that Compaq offers, Compaq will deliver PCs that are
easier to use and faster for the end user. Whatever the customer imagines
they want to do on a PC is now possible," Silverberg added.

Under the Joint Marketing Plan, Compaq and Microsoft will design specific
features into their respective products to provide added benefits to
customers. For instance, hot docking features in Compaq portable products
will take advantage of enhanced mobility functions in Windows 95. In turn,
network integration, enhanced by network management features in both
Windows 95 and Compaq PCs, facilitates easy network connection and
increases user productivity through easier sending, receiving, and
accessing of information.

Compaq was the first system vendor to introduce both portable and desktop
computers that support the Plug and Play standard, jointly developed with
Microsoft and Intel Corporation. The Plug and Play support designed into
Compaq systems and Microsoft Windows 95 ensures that customers can easily
add or remove hardware from their desktop systems. This combination
provides users with the capability to dock and undock their portable PCs
without restarting the computer. Windows 95 and the Compaq Plug and Play
BIOS will dynamically change any necessary hardware configurations. Compaq
desktop and notebook products are already Plug and Play-ready, with
built-in features to take advantage of Windows 95.

Microsoft has been developing and testing Windows 95 on Compaq PCs for more
than 18 months. Compaq has spent thousands of hours testing Windows 95 on
Compaq PCs for compatibility and quality in order to provide a smooth
transition for its customers.

Company 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 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.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

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