Compaq Opens Shenzhen Manufacturing Facility -- Compaq's Fifth Worldwide
Manufacturing Facility to Serve Growing PC Demand

SHENZHEN, CHINA, September 18, 1995 -- Compaq Computer Corporation has
announced the official opening of Compaq Computer Technologies (China) Ltd
in Shenzhen, The People's Republic of China. The facility will enable
Compaq to increase the production of its desktop personal computers and
power supplies to serve the growing computing needs of the Asia Pacific
region.

The 170,000-square-foot facility has one CPU line as well as three power
supply lines. Compaq currently employs a total of 600 people at the
factory.

This new facility enables Compaq to increase the production of its products
to accommodate the growing customer segment in the Asia Pacific area.
According to the most recent Dataquest figures, Compaq edged out
competitors to become the largest personal computer vendor in China with a
marketshare of 21.3 percent.

During a press conference to officially open the Shenzhen facility, Compaq
President and CEO Eckhard Pfeiffer said, "China is a market with a huge
potential. Compaq continues to see the growing demands in this market for
high quality PC products. We chose to establish this facility in Shenzhen
as it offers high quality and effective manufacturing opportunities. In
addition to the present production capacity, we are also considering
further expansion plans in the volume of CPU production and other new
manufacturing activities."

The plant marks a new milestone in the business development of Compaq in
China. Compaq is one of the first companies to establish a manufacturing
facility in this highly competitive market. The Shenzhen facility began
operations in August 1994, with a registered capital of $2.6 million.
Compaq now holds a 90 percent stake in this joint venture between Compaq
and Beijing Stone (Group) Corporation. Under the 11- year agreement, the
joint venture will manufacture PCs to meet increasing customer
requirements.

"This is a very positive step forward in our business here and demonstrates
our commitment to the China market," said Pfeiffer. "We are delighted to
cooperate with Stone Corporation in setting up this facility as Stone is a
well-established private company in China with a proven track record and
excellent market reputation for professionalism, entrepreneurship and
vision."

Wong Chee Wai, general manager of Compaq Computer Technologies Ltd said,
"This facility will enable Compaq to sell products in China in RMB and
reduces the logistics costs. Most of the products manufactured will be
distributed to countries in North Asia while power supplies will be
distributed worldwide. The facility will also produce products for the
entire Asia Pacific region. Plans are also underway to source for
materials domestically whenever costs permit."

WORLDWIDE MANUFACTURING

The demand for Compaq's desktop, portable and server products worldwide has
continued to drive manufacturing expansion throughout the world.

At its worldwide headquarters in Houston, Compaq operates 610,000 square
feet of manufacturing facilities. This operation, established in 1983,
includes the assembly of printed circuit boards as well as all Compaq
products.

Established in 1987, Compaq's European manufacturing, located in Erskine,
Scotland, is the main supplier of the complete line of Compaq products for
Europe, Africa and the Middle East. The 540,000-square- foot facility,
located in Europe's "Silicon Valley" builds the full-range of desktop and
server products.

Compaq's Singapore facility is currently doubling its size to 730, 000
square feet. This facility produces desktop and portable PC products and
printed circuit boards for the Asia/Pacific region as well as other
markets as necessary.

In 1994, Compaq established a manufacturing facility in Jaguariuna, located
near Sao Paulo, Brazil. Initially, the 150,000-square-foot facility will
produce desktops and surface mount technology assembly for the growing
needs of the South American market.

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, and Prodigy, or by calling
1-800-345-1518.
 
 =========================================================
 From the 'New Product News' Electronic News Service on...
 AOL (Keyword = New Products) and Delphi (GO COMP PROD)
 =========================================================
 This information was processed from data provided by the
 company/author mentioned. For additional details, please
 contact them directly at the address/phone# indicated.
 Trademarks are the property of their respective owners.
 =========================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  USA
 Email: rbakerpc@delphi.com  -or- RBakerPC (on AOL/Delphi)
 =========================================================
