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To: pass pass who wrote (24713)	11/26/1997 12:20:00 AM
From: Gary Korn	Respond to of 61433

CPQ/NETWORKING article #5 (see BOLD): 4/11/97 Fin. Post 55 1997 WL 4091943 The Financial Post Copyright The Financial Post Friday, April 11, 1997 1, News BUSINESS BRIEFS: UNITED STATES Compaq makes US$280M purchase Reuter Compaq Computer Corp. said yesterday it has agreed to acquire Microcom Inc., which makes remote-access technologies and computer modems, for US$280 million. Under the deal, Compaq will pay US$16.25 for each Microcom share. Microcom stock (MNPI/NASDAQ) closed up US$5 7/16 to US$15 15/16. Compaq shares (CPQ/NYSE) dropped US$2 7/8 to US$75 1/4. "Development of the strategically important and rapidly growing remote-access market is a top priority in Compaq's move to expand its communication products business," said Alan Lutz, senior vice-president of Compaq's communication products group. Remote-access technologies allow users to work on a computer network from another location. Compaq, the world's largest maker of personal computers, estimated demand for remote-access server computers will grow from US$3 billion in 1996 to US$8.3 billion in 2000. * Infomart-Online *

To: pass pass who wrote (24713)	11/26/1997 12:26:00 AM
From: Gary Korn	Respond to of 61433

CPQ/NETWORKING article #6 (see BOLD) (I wasn't going to copy this article, but the last bolded portion made me laugh so much I just had to): 4/11/97 Hous. Chron. 1 1997 WL 6550633 Houston Chronicle Copyright 1997 Friday, April 11, 1997 BUSINESS Compaq buys maker of hardware/Microcom purchased in $280 million deal DWIGHT SILVERMAN Staff Compaq Computer Corp. extended its reach into the Internet hardware market Thursday by paying about $280 million for a company that makes modems and remote access servers. Microcom of Norwood, Mass., is ""a company in transition," said Alan Lutz, senior vice president of Compaq's new communications products group. ""That's why we've done something clever in buying them. They were in transition from a small company classically known for making modems to one that is making a product that's in high demand." Compaq has been aggressively expanding into all facets of networking. In the fall of 1995, it acquired NetWorth and Thomas-Conrad, two companies that make networking components used to link computers and servers. Earlier this week, at the start of its Innovate Forum 97 conference in Houston, Compaq announced new technology designed to speed up the transmission of graphics over the Internet. Analysts said the Microcom acquisition fits well with Compaq's goal of becoming more than a PC maker. Compaq will pay $16.25 per share to Microcom's stockholders in the deal, which has already been approved by Microcom's board. Lutz said the deal should close in about a month. Microcom's stock closed at 15 on Thursday, up 5. Compaq's stock closed at 75 3/8, down 2 3/4. Lutz said Compaq still has not decided whether to continue to use the Microcom name on its products. But Microcom will keep its 325-employee headquarters in Norwood, which gives Compaq a base from which to recruit talent in the high-tech area near Boston. Lutz said the relationship between Microcom and Compaq began when Compaq hired Microcom to build some products. ""Our engineers worked well with each other. Our cultures were very similar," he said. ""I saw people working hard, and I saw people laughing together. That's always a good sign." Until recently, Microcom was known as a modem manufacturer, often making hardware on which other vendors slapped their names. Microcom also makes "Carbon Copy," a popular software program that lets one personal computer control another over phone lines or a network. But Lutz said Microcom has begun making and selling heavy-duty hardware designed to let large numbers of users access the Internet or a business network. Among the company's latest products is a remote access server, a kind of gateway for someone dialing into a computer network. That type of hardware is in big demand from all kinds of customers - from Internet service providers and phone companies to businesses with on-the-road or telecommuting employees. ""This isn't just a market that's growing by 10 and 20 percent every year - it's a lot more than that," said analyst William Conroy of Williams Mackay & Jordan in Houston. ""This is a market that's really starting to take off. With the proliferation of intranets, this is not a trivial deal." [GCK: Here is my favorite part--->] Conroy said Microcom may be a bargain for Compaq and that ""the stock was a little beat-up." In mid-December, Microcom's stock was trading on Nasdaq at a little over 15. Since then, it began a steady tumble to a low of 83/8 on April 2. On Wednesday, the day before Compaq's announcement, the stock closed at 101/2. Acquisition rumors involving Compaq have been circulating for several weeks. The company was rumored to be eyeing Gateway 2000, which sells PCs via mail order. Then, earlier this week, ZDNet's World Wide Web site reported Compaq was considering a deal to buy the direct-PC business of Micron Technologies, a chip maker. Lutz would not comment on the Micron story. Neither would Compaq Chief Executive Eckhard Pfeiffer when asked about it during an interview Wednesday at the Innovate Forum. ---- INDEX REFERENCES ----