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Technology Stocks : Compaq

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To: hlpinout who wrote (46406)6/17/1999 6:38:00 AM
From: hlpinout   of 97611
 
Compaq Joins Taiwan ISP to Launch PC Promotions

June 17, 1999 (TAIPEI) -- Compaq Computer Corp. surprised industry pundits recently
by agreeing to promote its personal computers with a Taiwan-based ISP.

Although Compaq has refrained from cooperating with U.S. Internet service
providers, to prevent any disruptions to its distribution channels, the PC giant
announced a joint promotion with Tatung Co.'s TISNet to offer PCs almost for free in
exchange for Internet service subscriptions.

The Compaq-TISNet promotion offers consumers Presario desktop PCs and Internet
software for TISNet Internet services with no time limits at the cost of NT$899 per
month for three years. (NT$32.384 = US$1)

Darren Huang, vice general manager of Compaq's Taiwan branch, said that excluding
bank installment interest and Internet service charges, consumers will pay less than
NT$20,000 for the Presario PC in the package. With this deal, the company is hoping
to attract consumers wishing to buy or upgrade their computers, but who are reluctant
to pay out a lump sum for a high-end PC. Huang added, however, that Compaq will
provide only 5,000 computers for the campaign.

The Compaq Presario 522G PC offered in the promotion is equipped with an AMD
K6-2 350MHz microprocessor, 64MB of RAM, a 4GB hard disk drive and a 40X
CD-ROM drive.

Compaq, however, is by no means the only company to come up with such a plan in
Taiwan. Currently, Tsann Kuen Enterprise Co., Ltd. cooperates with Info Serve
Technology Corp. and Hitron Technology Co. Ltd., while Elitegroup Computer Corp.
has hinged ties with Taiwan Telecommunications Network Corp. to sell PCs and
Internet services in a package at bargain prices. Systex Corp., a publicly listed
information software and computer network firm, launched a promotion bid with a PC
distributor to offer one-year online stock trading information service along with a
computer for NT$28,800.

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