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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: FactBoy who wrote (10352)4/3/1998 12:11:00 PM
From: John Nasser  Read Replies (4) of 14577
 
Seems like no one cares about Design wins anymore. Well, here's another one.

Compaq Unveils Powerful Armada 7800 Notebook PC
Featuring Intel's Mobile Pentium II Processor

Business Wire - April 02, 1998 09:26

%COMPAQ CPQ %TEXAS %COMED %COMPUTERS %ELECTRONICS %PRODUCT V%BW P%BW

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HOUSTON--(BUSINESS WIRE)--April 2, 1998--

Armada 7800 Offers Industry-Leading AGP Implementation

Featuring a Dedicated High Performance 66-MHz Graphics Bus

Editors Summary

Compaq Computer Corporation today announced:

--The new Compaq Armada 7800 notebook, based on the new, high performance 266-MHz Intel
Mobile Pentium(R) II processor;

--Industry-leading implementation of AGP (Accelerated Graphics Port) -- a dedicated 66-MHz
graphics bus for outstanding video and graphics performance;

--New ArmadaStation II, incorporating all existing features of the award-winning ArmadaStation,
plus the addition of USB passthrough;

--New DriveLock security feature for advanced protection of data which resides on the customer's
hard drive;

--Advanced industrial design for the Armada 7800 family, featuring the transition to a dark gray
carbon color for desktop-equivalent notebooks; and

--Free Second Business Day Turnaround Warranty for expedited repair on Compaq portables.

Expanding its broad line of portable products to meet the requirements of high-performance mobile
users, Compaq Computer Corporation (NYSE:CPQ) today introduced the powerful new Armada
7800 notebook featuring Intel's 266-MHz Mobile Pentium(R) II processor. With the introduction of
the Armada 7800, Compaq unveils one of the industry's first notebook PCs with AGP
implementation (Accelerated Graphics Port), incorporating a dedicated 66-MHz Graphics Bus for
outstanding video and graphics performance.

"One of our main goals at Compaq is to provide customers with products that enable them to
achieve the full power of computing with any Compaq platform they choose," said Michael Winkler,
Senior Vice President and Group General Manager, PC Products Group, Compaq Computer
Corporation.

"With the addition of the Armada 7800, we are better able to address the needs of power users
who require superior, reliable systems to handle the demands of advanced or specialized
applications that are critical to the success of their companies," Winkler concluded.

Additional announcements from Compaq include the ArmadaStation II towerable desktop
expansion base, which is completely forward and backward compatible with the Armada 7000
products; full-sized PCI/ISA slots, bays and port replication; and the addition of a USB port.
Compaq also unveiled a new industrial design featuring a dark gray carbon color for the 7800 and
future Armada notebooks, with a coordinating light gray opal color for the ArmadaStation II
products. The original award-winning ArmadaStation, announced last April, is also compatible with
the Armada 7800, which maximizes current customers investment protection in Compaq portable
technology. Shipments of the Armada 7800 will begin in April, with full availability in May.

In response to business customer requests for heightened service offerings in the portable arena,
Compaq also announced a new warranty service and support program effective immediately for the
Armada 7800. Compaq now provides second business day total turnaround pick-up and delivery
service, which expands upon the company's existing Three Year Worldwide Warranty to provide
fast, quality service, normally within two business days(A). The New Powerhouse Armada 7800

Designed for those customers who are looking for the ultimate in notebook performance, the
Armada 7800 brings a new generation of power to Compaq's Armada notebook family. Its
leading-edge technological features provide users with the speed and performance needed in the
most demanding business situations, particularly in graphics-intensive environments.

Featuring Intel's new 266-MHz Mobile Pentium II processor with 512KB of secondary cache, the
Armada 7800 offers maximum performance in processor-intensive, multi-tasking environments,
delivering unprecedented desktop functionality and mobile convenience with complete desktop
expansion capabilities.

"The combination of Intel's Mobile Pentium II processor and the technology incorporated in
Compaq's Armada 7800 notebook provides customers with a new level of power and
performance," said Stephen Nachtsheim, Intel Corporate Vice President and General Manager,
Mobile and Handheld Products Group. "This winning combination enables mobile users to
experience exciting new applications with performance equivalent to that of a desktop."

An absolute graphics powerhouse, the Armada 7800 is a perfect complement to graphics-intensive
applications and demanding multimedia operations. One of the industry's first notebooks to
incorporate AGP on a dedicated 66-MHz graphics bus, the Armada 7800 includes an integrated
S3 ViRGE/MX 64-bit Graphics Controller with 4MB of SGRAM (Synchronous Graphics Random
Access Memory). This combination provides customers with unmatched 3D graphics acceleration,
extensive simultaneous display capability with same image support, enhanced 2D/3D performance,
24-bit true color support and higher resolution.

The Armada 7800 also comes with 64MB (megabytes) SDRAM (Synchronous Dynamic Random
Access Memory), expandable to 160MB. Overall, these features provide more than a 30 percent
increase in performance(B), ideal for those customers who need to run graphics-intensive
applications and operating systems in mobile environments.

The Armada 7800 offers an integrated AC adapter to reduce carrying weight (all a customer has to
carry is a power cord); a brilliant, 13.3-inch color TFT (thin film transistor) 1024 x 768 display (up
to 16.8 million colors) with an external refresh rate of up to 100MHz at SVGA resolution, for easy
viewing of multimedia applications; and a 20X Max CD-ROM (C)with dual integrated speakers
and Compaq PremierSound. It also incorporates 16-bit and 32-bit CardBus slots and a 5GB
SMART hard drive with DriveLock security for higher data storage capacity and robust protection
against data theft. A Lithium-Ion (Li-Ion) battery is included as standard equipment. Total carrying
weight is 7.8 to 8.7 pounds, depending on the unit's configuration.

The flexible MultiBay design of the Armada 7800 leverages the existing Armada 7000 platform,
offering backward compatibility and interoperability with Armada 7000 series features and options.
The Armada 7800 supports a standard 20X Max CD-ROM, diskette drive, second hard drive
option, second battery option, a new MultiBay SuperDisk LS-120 drive option or a future DVD
drive option. Total disk storage possible in the notebook is 16GB (gigabytes) with the addition of
two optional 8GB SMART hard drives(D). Compaq also launched a new Armada 7800 External
Diskette Drive for simultaneous access to the MultiBay CD-ROM, diskette drive and hard drive to
provide a three-spindle solution.

"The combination of the latest notebook technology and Compaq's reputation for reliability made
the Armada 7800 an extremely attractive platform," said Don Jones, Microsoft's IT Director for
North America. "The integration of Intel's Mobile Pentium II processor, Compaq's impressive AGP
features, and a large memory configuration enable Microsoft to put the latest technology in the
hands of its sales force while providing them with the platform which is best suited for demonstrating
the company's complete line of Microsoft software from Consumer titles such as Microsoft Fighter
Ace to Windows 98, Windows NT(TM) and the Back Office family." Broad Operating System
Support

The Armada 7800 provides full support and outstanding mobile performance for Microsoft
Windows 98, Windows 95 and Windows NT Workstation 4.0. With ACPI hardware, the Armada
7800 will be able to deliver the optimum mobile performance in conjunction with Windows 98 when
it becomes available. The Armada 7800 also provides leadership-class mobile support and
performance with Windows NT. Performance benchmark testing indicated the Armada 7800 runs
22 percent faster with Windows NT Workstation 4.0 than with Windows 95(E). The Armada
family offers mobile extensions to Windows NT including power management support, PC card
support, 32-bit CardBus support and both PC Card and MultiBay plug and play support. These
mobile enhancements and outstanding performance make the Armada 7800 a logical choice for
companies deploying Windows NT.

Further, the Armada 7800 is PC 97 compliant(F), Year 2000 compliant(G) and ACPI hardware
ready for optimization for current and future applications and operating systems(H) As with all
Armada 7000 products, the Armada 7800 utilizes the award-winning ArmadaStation docking
station and the MiniStation E convenience base for full desktop functionality.

Prices for the Armada 7800 are $5,199(I) for the Windows 95 model (without integrated modem);
$5,399 for the Windows 95 model with an integrated 33.6Kbps Data/Fax modem(J); and $5,499
for the Windows NT Workstation 4.0 model (without integrated modem).

For a limited time, Compaq Capital, Compaq's financial services subsidiary, is offering 4.9 percent
financing or low-rate leasing(K) on the Armada 7800 and all other Compaq hardware. Eligible
commercial customers simply need to order at least five Compaq system units, or $15,000 worth of
Compaq equipment, whichever is less, and start their lease by June 30, 1998. For more information
on this and other financing programs, please call Compaq Capital at 1-888-277-5942. Service and
Support Offerings

The announcement of the Armada 7800 brings a new level of service to Compaq's notebook
customers with the addition of a higher level of service in a new Three Year Limited Parts and
Labor Warranty, offered for all Armada 7800 models and all new Armada products going
forward(L). Warranty service will be delivered in two business days, with free pick-up and delivery
by Compaq one of the industry's fastest turnaround times(M). Compaq will pick up the customer's
notebook, repair it and return it to the customer within two business days free of charge, for a
period of three years. Available April 2, this pick-up and delivery service is part of Compaq's new
family of Mobile Availability Services to keep customers up and running. Further announcements
about this program will be made later this year.

Today also marks the official introduction of Compaq's Overnight Parts Replacement Program,
through which Compaq supplies end-users with replaceable parts overnight, free of charge(N). This
program allows customers the option of a quicker repair solution for those parts they can easily
replace themselves.

In addition to the programs announced today, Compaq continues to offer its customers the Three
Year Worldwide Warranty with carry-in service outside the U.S. and Canada, a Pre-failure Drive
Warranty(O), InfoMessenger, Remote Technical Support, Software Quick Support, a
QuickRestore CD, and 24 Hour Technical Support, proving its commitment to customer
satisfaction throughout the entire ownership experience. Expansion Base Enhancements

Building upon its award winning expansion base options, Compaq today introduced the
ArmadaStation II, offering full desktop functionality and featuring motorized hot docking in
Windows 95. While maintaining the existing features of the ArmadaStation two half-height/modular
drive bays, two full-length slots supporting any combination of PCI or ISA boards and two slots for
16- and 32-bit PC cards the ArmadaStation II takes docking to the next level with the addition of
USB passthrough.

In addition to the ArmadaStation and ArmadaStation II expansion options, Compaq also offers
Armada 7000 users the Armada MiniStation E for easy Ethernet and modem pass-through
connections. This convenience base provides full port replication for connecting printers, full-size
monitors (with an optional Monitor Suport Cover) and other peripherals.

The new opal-colored ArmadaStation II provides a complementary solution at the desk when
adding coordinating new Compaq keyboards and monitors. This new color scheme is part of a
corporate strategy aimed at strengthening the Compaq brand message, which includes the Armada
products. Investment Protection

A key component in reducing the total cost of ownership is protection against the theft of notebook
PCs and their data. With today's introduction of the Armada 7800, Compaq has added enhanced
security and robust protection against unauthorized access to confidential data through the use of an
innovative hard drive data security feature known as DriveLock. The DriveLock feature secures
data by adding password protection to the hard drive ROM, not the system ROM, allowing
protection to stay with the drive. Further, a protected drive cannot be opened even if placed in a
different notebook. By using a dual password scheme, the MIS administrator is able to maintain and
control DriveLock features and usage without restricting the user's day to day activity from access.
In the event the user password is lost, the MIS administrator is able to reset the user password.

In addition to the DriveLock feature, customers may also seek additional protection from product
theft through the use of a Compaq Security Lock. Available as a stand-alone option, this six-foot
long galvanized steel cable provides a strong yet flexible way to secure a Compaq notebook,
ArmadaStation, Convenience base or C-Series product. Intelligent Manageability

As with all Compaq commercial notebook and desktop PCs, the new Compaq Armada 7800
notebook comes standard with Intelligent Manageability features including enhanced security, asset
management, and fault prediction including SMART removable hard drives. In particular, the
SMART removable hard drives warn users prior to a possible drive failure, allowing time to back
up data and replace the drive under warranty, thereby helping users reduce their total cost of
ownership. Mobile Computing Enhancements

Complimenting today's announcement of the Armada 7800, Compaq also announced several new
mobile product enhancements. These products include:

--the new Compaq Portable Video Conferencing Kit, a LAN-based video conferencing solution for
all current Compaq Armada notebooks;

--the Multibay SuperDisk LS-120 Drive, a backwards-compatible disk drive to meet large storage
requirements for the Armada 7000 Series notebooks;

--an 8GB SMART hard drive for the Armada 7700 and 7800 families (available in June), the
largest storage size currently available for portable computers;

--an External Diskette Drive designed for the Armada 7800 product line, offering simultaneous use
of MultiBay CD-ROM, diskette drive and hard drive;

--the innovative Universal Monitor Stand, a new desk stand designed to improve viewing and
consolidate desk space;

--the Compaq Security Lock, a six-foot galvanized steel cable to secure Compaq notebook
computers;

--enhanced Synchronized Dynamic Random Access Memory (SDRAM) for the Armada 7800
series;

--an Auto/Aircraft adapter, compatible with some new aircraft outlets; and

--the Netelligent 56K PC Card/Fax modem(P), a high-performance 56Kbps data modem that can
be upgraded to the new ITU standard, V.90(Q). Company Background

Founded in 1982, Compaq Computer Corporation, a Fortune 100 company, is a worldwide
information technology company. Compaq is the fifth largest computer company in the world and
the largest global supplier of personal computers. With worldwide sales of $24.6 billion in 1997,
Compaq develops and markets hardware, software, solutions and services, including
industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking
and communications products, commercial desktop and portable products and consumer PCs. The
company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of
authorized Compaq marketing partners. Customer support and information about Compaq and its
products can be found at compaq.com or by calling 1-800-OK-COMPAQ. Product
information and reseller locations can be obtained by calling 1-800-345-1518.

Historical financial results have been restated to reflect the pooling of Tandem.

(A) Certain restrictions and exclusions apply. Pick-up and delivery service is available in the 48
contiguous U.S. states and Canada. Eligibility for priority pick-up (2nd business day return) is
limited to certain geographic locations. Carry-in service available outside U.S. and Canada. If your
portable computer needs a hardware repair that is covered under warranty, then Compaq will
deliver packaging, pick-up the portable computer from your location, repair the computer, and
deliver the repaired computer to the location of your choice normally within two business days.

(B) Compared to 266-MHz with MMX(TM) technology, EDO RAM and S32 Aurora 64V+
Graphics Accelerator and 2MB of video RAM, using the WinMark 98 Business Graphics
benchmark test.

(C) 20C Max CD-ROM data transfer rates may vary from 1275 KB/s to 3000 KB/s.

(D) Unit comes standard with one 5GB SMART hard drive. Optional 8GB SMART hard drives
are expected to be available in June 1998.

(E) Ziff-Davis WinStone 98 tests show that Windows NT 4.0 is 22% faster than Windows95 on
the Armada 7800.

(F) PC 97 is a Microsoft design guideline for PC systems that are optimized and tested to run
Windows (R) 95 and Windows (R) NT 4.0 and future versions of these operating systems.

(G) Compaq provides a Year 2000 warranty; see the Compaq web site at www.compaq.com for
certain restrictions and exclusions.

(H) For additional information on ACPI, please refer to the January 12, 1998 release.

(I) All prices listed herein are U.S. selling prices. Reseller pricing may vary.

(J) Upgrade to K56flex planned for 1H98. The K56flex protocol is designed only to allow faster
downloads from K56flex compliant digital sources. Maximum achievable download transmission
rates currently do not reach 56Kbps, and will vary with line conditions.

(K) Financing offered by Compaq Capital Corporation to qualified commercial customers in the
U.S. Tandem equipment is not eligible for this offering. Offering is based on dealer sales price; low
lease rates are also available. Offering may not be combined with special discounts and is subject to
credit approval and execution of standard lease documentation. Offering is subject to other
restrictions and Compaq Capital reserves the right to change, alter or cancel this offering at any time
without notice.

(L) Certain restrictions and exclusions apply. See footnote A.

(M) Certain restrictions and exclusions apply. Pick-up and delivery service is available in the 48
contiguous U.S. states and Canada. Eligibility for priority pick-up (2nd business day return) is
limited to certain geographic locations. Carry-in service available outside U.S. and Canada. If your
portable computer needs a hardware repair that is covered under warranty, then Compaq will
deliver packaging, pick-up the portable computer from your location, repair the computer, and
deliver the repaired computer to the location of your choice normally within two business days.

(N) Certain restrictions and exclusions apply. Eligibility is limited to certain geographic locations.

(O) Pre-Failure Warranty is available on Compaq portable products using Intellisafe hard drives
and Compaq Intelligent Manageability. Certain restriction and exclusions apply. For more
information, refer to PaqFax Doc#1217.

(P) Available June 1998.

(Q) ITU V.90 modems are designed only to allow faster downloads from K56Flex or V.90
compliant digital sources. Maximum achievable download transmission rates are currently unknown,
may not reach 56 kilobits per second and will vary with line conditions.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be
trademarks and/or registered trademarks of their respective companies.

Microsoft is either a registered trademark or trademark of Microsoft Corp. in the United States
and/or other countries.

Intel and Pentium are registered trademarks and MMX is a trademark of Intel Corporation.


CONTACT: Compaq Computer Corporation
Nora Hahn, 281/514-0484
nora.hahn@compaq.com
OR
Miller/Shandwick Technologies
Julie Akstin, 281/405-2627
jakstin@miller.shandwick.com
OR
Miller/Shandwick Technologies
Lauren Gilligan, 617/351-4186
lgilligan@miller.shandwick.com
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