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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Night Writer who wrote (84631)9/5/2000 4:50:07 PM
From: Elwood P. Dowd  Respond to of 97611
 
Tuesday September 05 03:15 PM EDT
Compaq offers 'have it your way' PCs

By John G. Spooner, ZDNet News

The PC maker christens a new line of made-to-order machines while
retiring the Prosignia brand.

Compaq Computer Corp. (NYSE:CPQ - news) is redeploying its alphabet, replacing its big Q with an E, an
X and in some cases an S.

The Houston, Texas PC maker on Tuesday announced a redesign of its DeskPro desktop aimed at corporations.
The new PC will be called DeskPro EX.

After CEO Michael Capellas took over the helm at Compaq, he restructured the
company, with the aim of cutting costs and generating more innovative products.

The EX launch, Compaq says, completes a redesign of its corporate PC lineup, aimed
at bringing the company's commercial PC business back to profitability.

PC lineup rounds out

Compaq's DeskPro EX and EXS series join the low-cost iPAQ and the redesigned
DeskPro EN series, re-introduced last June.

Compaq will, however, retire its Prosignia line of PCs for small- and medium-size
businesses. Prosignia will be replaced by the new DeskPro EXS-series of desktops.
Prosignia notebooks will be rebranded at Armada S-series notebooks.

The DeskPro EX and EXS serve to reduce Compaq's manufacturing costs as well as simplify the process by which
a customer chooses a PC.

Compaq cuts costs by standardizing on Intel Corp.'s (Nasdaq:INTC - news) 815 chip set for the new DeskPro. The
chip set's flexibility allows Compaq to offer PC models ranging from an entry-level Celeron-based desktop to a
high-end minitower with a beefy hard drive and Intel's 933MHz or 1GHz Pentium III chip.

With the launch of the EX line, Compaq folds in configure-to-order capabilities that allow customers to choose
processors and other features. The PCs are available now via its DirectPlus Web site and through resellers.

The 566MHz machine, with a 10GB hard drive and 64MB of RAM, starts at about $750. A 15-inch monitor bumps
the price to just over $1,000. Meanwhile, the 933MHz machine will start at about $2,200 with a 17-inch monitor,
128MB of RAM and an Nvidia graphics card.

Compaq Computer Corp. Compaq will also offer Intel's 1GHz Pentium III later in the month.

"We are getting a small number (of the chips), we are also forecasting a small number at this point," said Lisa
Baker, director of North America desktop marketing for Compaq.

The company is showing a non-configurable 1GHz system under its DeskPro EXS line. The model, in minitower
form, was priced at $2,340. It is also offering a non-configurable, $699 DeskPro EX with a 566MHz Celeron chip.

Prosignia logs off

As part of its simplification plans, Compaq will phase out the Prosignia brand, replacing it with DeskPro EXS and
Armada S-series models. These new models will be similar in configuration, but will offer additional services and
different software including Microsoft Corp.'s (Nasdaq:MSFT - news) Office productivity suite and Symantec Corp.'s
(Nasdaq:SYMC - news) Norton AntiVirus that are aimed at small businesses.

"By consolidating brands, we think it's going to be easier for customers to decide what to buy," Baker said.

Compaq also goes from manufacturing five different PC chassis to two chassis, which saves the company on
manufacturing costs.

Compaq also introduced two notebooks under the new "S" brand. They are the Armada E500S and Armada 100S.
The former Prosignia models aim to offer flexibility and low cost.

The Armada 100S starts at $1,099 and offers Advanced Micro Devices Inc.'s (NYSE:AMD - news) K6-2+ processor
running at 533MHz.

The Armada E500S starts at $2,099 and offers Intel mobile Pentium III chips, within an all-in-one design, meaning
that it includes a floppy and CD-ROM drives inside the chassis.

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