COMPAQ LOWERS PRICES ON PRESARIO HOME PCS -- PRESARIO PCS FEATURING PENTIUM
AND QUADSPEED CD-ROM NOW START AT $1,599

HOUSTON, May 19, 1995 -- Setting the industry pace in bringing brand name
PCs to value-conscious consumers, Compaq Computer Corporation (NYSE: CPQ)
today announced it has reduced prices on most of its popular Presario 500,
700 and 900 Series of home PCs by as much as 12 percent.

With prices now starting as low as $1,599 (NOTE 1), the easy-to-use,
multimedia Presario PCs continue to offer tremendous value while
delivering the legendary quality and reliability associated with the
Compaq brand name. Today's price reductions affect 11 Presario PCs and
include most of the Pentium-based models. All price cuts are effective
Friday, May 19.

"Compaq continues to lead the way in delivering brand name PCs at
value-oriented prices to address the lifestyle computing needs of today's
home user," said Jim Tucker, vice president, Consumer Product Business
Unit, Compaq Computer Corporation. "The broad range of Pentium-based PCs
affected by the price cuts offer every user the ultimate in innovation,
quality, dependability, ease of use and value."

 All prices listed are estimated selling prices, dealer prices may vary.
Monitor not included in Presario 700 and 900 Series prices.

Compaq Presario Price Reductions (Note 1):
---------------------------------------------------------------------
                                                           Percentage
Model                             New Price    Old Price    Reduction
---------------------------------------------------------------------
All-in-One Units:
  Presario CDS 524 (2X CD-ROM)     $1,649       $1,799            8%
  Presario CDS 524 (4X CD-ROM)     $1,699       $1,799            6%
  Presario CDS 526                 $1,799       $1,899            5%
  Presario CDS 528                 $1,799       $1,999           10%
---------------------------------------------------------------------
Desktop Units:
  Presario CDS 744                 $1,599       $1,699            6%
  Presario CDS 774                 $1,899       $2,099           10%
---------------------------------------------------------------------
Minitower Models:
  Presario CDS 954                 $1,699       $1,799            6%
  Presario CDS 972                 $1,999       $2,149            7%
  Presario CDS 974                 $2,199       $2,349            6%
  Presario CDTV 978                $2,099       $2,349           11%
  Presario CDS 982                 $2,199       $2,499           12%
---------------------------------------------------------------------

Compaq Presario PCs feature more than 20 software titles in a variety of
categories including on-line services, financial management, family
"edutainment," reference, productivity, presentation, home management and
games. In addition, Compaq's ongoing commitment to increase ease of use is
exemplified by enhancements to MediaPilot, Compaq's innovative and
intuitive set of software utilities that provide easy access to the
Presario family's exciting telephony and multimedia features.The TabWorks
"notebook" user interface for Microsoft

Windows provides users with a guide to the software bundled on the
Presario, as well as quick and easy access to their files and
applications.

With these PCs, Compaq has also reduced the total set-up time to less than
10 minutes. Customers simply take the Presario PC out of the box, plug it
in, and are immediately able to enjoy the benefits of lifestyle
computing.

Compaq Presario 500 Models: Built-in Features at Value Prices

Presario 500 Series -- including the CDS 524, CDS 526 and CDTV 528 -- adds
increased power and performance to the flagship "all-in-one" series of
affordable, easy to use, easy to set up PCs. The Presario 500 Series
models offer innovative features such as a space-saving design, integrated
monitor, built-in stereo speakers, full-duplex speakerphone and television
capability (Presario CDTV 528).

Compaq Presario 700 Series: Power and Flexibility

Presario 700 Series of slimline desktop PCs -- including the CDS 744, CDS
762 and CDS 774 -- combines flexibility with core Presario multimedia
features. Full-duplex speakerphone and stereo sound is available when
combined with a Compaq Presario Multimedia Monitor, which is designed to
maximize the audio and video graphics of multimedia applications with
built-in speakers and microphone.

Compaq Presario 900 Series: Exceptional Power and Expandability

The popular minitower design of the Presario 900 Series offers premium
processing power with plenty of room for expansion and upgradeability,
while saving workspace in a small or home office.

Company Background

Compaq Computer Corporation is the world's largest supplier of personal
computers, offering desktop PCs, portable PCs 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 Direct Plus at 1-800-888-5858. Compaq
provides 24-hour customer support and can be reached through the Compaq
forums on America Online, CompuServe, Internet (http://www.compaq.com),
and Prodigy, or by calling 18003451518.

NOTE 1: All prices listed are estimated selling prices, dealer prices may
vary. Monitor not included in Presario 700 and 900 Series prices.

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