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To: greg nus who wrote (3677)1/12/1998 9:42:00 AM
From: Paul Engel  Respond to of 6843
 
Greg - Re: "Cpq Do you think following the Dell will result in better margins for CPQ?"

Sure - they hold less inventory and can take advantage of faster price changes.

By the way - here's the official Compaq 266 MHz K6 Notebook announcement:

biz.yahoo.com

Paul

{==============================}

Monday January 12, 9:07 am Eastern Time

Company Press Release

Compaq Unveils Powerful Notebooks with 266-MHz
Pentium-R- Processors, Including New Armada 4200

Armada 4200 Models Among the World's First ACPI Notebooks

Editors' Summary

HOUSTON--(BUSINESS WIRE)--Jan. 12, 1998-- Compaq Computer Corporation today announced:

Three enhanced Armada notebook families with models based on the new Intel 266-MHz
Pentium(R) processor with MMX(TM) technology.
New levels of performance and battery life in a redesigned, light and versatile Armada 4200
family.
Two of the world's initial ACPI-compliant products (Advanced Configuration and Power
Interface), featuring up to three weeks of stand-by capability and longer battery life.
New service and support options for Compaq Armada customers, including an Enhanced
Internet Service Site, Remote Technical Support and Software Quick Support with a targeted
60-second response time.

Proving that one size does not fit all when it comes to high performance portable computing,
Compaq Computer Corporation (NYSE: CPQ - news) today introduced not only a variety of new
products based on the powerful Intel 266-MHz Pentium(R) processor with MMX(TM) technology, but
a newly redesigned Armada 4200 family -- featuring two of the world's first ACPI-compliant portables
with improved power management -- and new service and support options.

''Compaq is committed to providing its customers with a competitive advantage in notebook
computing,'' said Michael Winkler, Senior Vice President and Group General Manager, PC Products
Division, Compaq Computer Corporation. ''With Compaq's ultimate goal being the customer's total
satisfaction, we've updated the Armada line with the latest Intel technology, added several
substantial support options and inaugurated breakthrough power management features to deliver
consistent quality, value and availability,'' Winkler concluded.

Leading the industry with the latest technology in a broad range of mobile solutions, Compaq
unveiled the new Compaq Armada 7792DMT and 7380DMT, representing the high performance,
desktop replacement range of the Armada line, as well as the Armada 4220T and 4210T light and
flexible notebooks based on an entirely new internal design. In addition, Compaq announced the
Armada 1592DMT and 1560DM, all-in-one notebooks with updated features for unprecedented
value.

''The new Intel 266-MHz Pentium(R) processor with MMX(TM) technology brings superb power and
performance to Compaq's Armada notebooks,'' said Steve Nachtsheim, Intel Vice President. ''By
combining the cutting-edge technology available from both Intel and Compaq, customers can
achieve maximum levels of performance typically associated with a desktop, while enjoying the
freedom of a mobile computer.''

Armada 7000 Models Boosted with More Power

Bolstering its entire Armada 7000 series of desktop-equivalent notebooks, Compaq today
announced two new top-of-the-line models based on the new Intel 266-MHz Pentium processor with
MMX technology. The Armada 7792DMT -- designed for power users who need performance,
robust desktop expandability and mobile convenience, and the slimline, lightweight Armada
7380DMT -- designed for mobile professionals on-the-go -- both offer the ultimate in desktop
functionality with the award-winning Compaq ArmadaStation. The Armada 7792DMT features a
dazzling 13.3-inch color TFT (thin film transistor) display with 1024 x 768 resolution, up to 64,000
colors, a 5GB SMART hard drive expandable to 10GB with a second drive, and an integrated AC
adapter. With dual battery support, the Armada 7792DMT also boasts exceptional battery life(A) on
the road.

The Armada 7380DMT offers a thin, light notebook with the same high performance, starting at just
5.6 pounds and 1.5-inches thin. With a 12.1-inch color TFT display in 1024 x 768 resolution, the
Armada 7380DMT includes a 4GB SMART hard drive, expandable to 8GB with the addition of a
second drive.

Both products include Intelligent Manageability, 512K Level 2 cache, 32MB EDO RAM expandable
to 144MB (Armada 7792DMT) or 128MB (Armada 7380DMT), a 33.6Kbps telephony data/fax
modem with DSVD, upgradeable to the K56flex(B) protocol via flash upgrade, and a 20X Max
CD-ROM drive standard(C). Models come standard with either Windows NT Workstation 4.0 or
Windows 95. In addition, each model utilizes the award-winning ArmadaStation docking station and
the MiniStation E convenience base for full desktop functionality.

The Armada 7380DMT is available immediately worldwide and is priced at $4,999(D) for the
Windows 95 model. Production of the Armada 7792DMT is expected to begin in January and to ship
in volume worldwide in late February, priced at $5,699 for the Windows 95 model. Windows NT 4.0
models are $5,099 and $5,799, respectively.

New Armada 4200 Family

Today marks the debut of the new Compaq Armada 4200 family of light and versatile notebooks,
perfect for notebook users who are concerned about carrying weight and want the flexibility to
customize their configuration. The Armada 4200 products let customers take what they want, where
they want, when they want.

In addition to its many new features and enhancements, the Armada 4200 products immediately
provide customers with up to 500 hours of standby capability. With this feature, customers can place
the Armada 4200 products in standby mode instead of powering down on extended trips of up to
three weeks. Customers will also see a 25 percent increase in battery life over previous models due
to the system's more efficient use of power(A).

Leveraging the award-winning external design of the Armada 4100 family, the newly designed
Armada 4200 series expands upon the sleek, versatile form factor with a complete internal redesign.
Thinner and lighter than any other notebook in Compaq's Armada family, the Armada 4200 models
weigh only 5.2 pounds and measure 1.5-inches thin. The Armada 4200 models combine the best of
the best -- higher performance, larger hard drives and significantly faster graphics optimized for
Windows 95, with support for Windows NT 4.0 operating system environments.

The Compaq Armada 4220T incorporates the new Intel 266-MHz Pentium(R) processor with
MMX(TM) technology, as well as a 4GB (gigabyte) SMART hard drive. The Armada 4210T comes
with an Intel 233-MHz Pentium Processor(R) with MMX technology(TM) and a 3GB SMART hard
drive. Both products now include 32MB (megabytes) of standard RAM (random access memory)
expandable to 96MB, 256KB (kilobytes) Level 2 cache, a 64-bit graphics subsystem with 2MB EDO
Video RAM and two 32-bit CardBus PC Card slots.

Other new features include an external diskette drive caddy, and both bay and handle Li-Ion (lithium
ion) batteries for up to seven hours of freedom on the road(E). The Armada 4200 is designed for
Windows 98 with full support for Windows NT.

As with all Compaq commercial notebook and desktop products, the Compaq Armada 4200
notebooks come standard with Compaq's Intelligent Manageability features that make PCs easier to
manage and less expensive to own. Intelligent Manageability includes enhanced security, asset
management and fault prediction, featuring SMART hard drives which warn users prior to a possible
drive failure. Both models are available immediately worldwide. The Armada 4220T is priced at
$3,999 and the 4210T at $3,499(D).

Setting New Standards in Battery Life

In anticipation of Microsoft Corporation's [Nasdaq:MSFT - news] release of Windows 98, Compaq is
designing its new portable products to the ACPI (Advanced Configuration and Power Interface)
specification. Most new Armada portable products announced in 1998 prior to Windows 98
availability will be ''ACPI Hardware Ready,'' including the new Armada 4200 products announced
today.

ACPI is part of the OnNow initiative, a comprehensive, system-wide approach to system and device
power control. OnNow refers to a PC that is turned on but appears to be off, yet responds
immediately to user or system requests. Delivering transparent power management and improved
system integration to the PC, OnNow allows the operating system to respond to events and manage
the power for the entire system and its devices. OnNow relies on the ACPI-defined hardware
interface for power management and configuration control.

With ACPI, the operating system no longer communicates directly with the hardware via the BIOS
(Basic Input/Output System), but rather with the ACPI-defined interface between the hardware and
the operating system. This allows for significantly better power management.

Compaq is working closely with Microsoft and Intel on the implementation of ACPI, and provided
Microsoft with one of the first notebook test platforms with ACPI hardware.

''Compaq's aggressive work with ACPI on the Armada 4200 will speed the transition to OnNow
technology and the benefits that a comprehensive, system-wide architecture for power management
and configuration control provides for portable users for today and the future,'' said Rich Tong, Vice
President of Personal Systems Business Group, Microsoft Corporation. ''The Armada 4200 ACPI
implementation gives Armada 4200 buyers a system that's not only great for Windows 95 and
Windows NT Workstation 4.0 but also ready to take advantage of the power management advances
in Windows 98 and Windows NT Workstation 5.0.''

Armada 1500 Enhancements: High-End Features at Value Prices

The Armada 1500 family also gained two new models today for unprecedented levels of
performance and value in a unique all-in-one solution. Incorporating Intel's 233-MHz Pentium
processor with MMX technology, an impressive 512K Level 2 cache, 32MB EDO RAM, a 20X Max
CD-ROM(C), a USB (Universal Serial Bus) port and a 3.2GB hard drive, the Armada 1592DMT
becomes Compaq's most powerful notebook in its class. This fully integrated notebook combines all
these features with full 3-spindle support, an integrated AC Adapter and a high performance K56flex
modem for exceptional power and convenience in a single package.

The new Armada 1560DM is equally as impressive and offers customers an even lower price point.
The Armada 1560DM comes with a 166-MHz Pentium processor with MMX technology and a
high-contrast 12.1-inch CSTN display panel with 800 x 600 resolution. Also included are a 3.2GB
SMART hard drive, 256K Level 2 cache and a 20X Max CD-ROM drive. Both new models come
standard with an integrated K56flex(B) Data/Fax modem with full duplex speakerphone for increased
communication and performance.

The Compaq Armada 1592DMT and 1560DM are available immediately worldwide. The Armada
1592DMT is priced at $3,899 and the Armada 1560DM at $2,499(D). Compaq also announced its
intention to incorporate Intel's 266-MHz Mobile Pentium processor with MMX technology in future
versions of its Armada 1500 family.

Enhanced Customer Support Options

Responding to the growing demand for quick turn-around solutions, Compaq today unveiled a new
service and support option specifically designed for small and medium sized businesses that use
portable computers. Software Quick Support is a per-incident, fee-based service with a dedicated
telephone number and a team of specially trained support professionals. With Software Quick
Support, customers can call the Compaq Technical Support Center with questions about popular
programs such as Lotus SmartSuite or Microsoft Works, with a targeted response time of one
minute or less.

Other new or enhanced customer support offerings include:

InfoMessenger, an industry-leading, proactive program through which Compaq customers
receive automatic notification of system updates on newly registered products. This is an
online program designed to send customers ROM updates, patches, drivers and product
information more quickly and easily.
Remote technical support using CarbonCopy, a new service option which allows the Compaq
Technical Support Center's computer system to take control of a product when diagnosing and
correcting software issues. CarbonCopy enables technical support engineers to act as
mediators, providing faster and more accurate service to customers with standard technical
requests.
Pre-failure hard drive notification to proactively replace drives under warranty prior to possible
failure.
An optional end-user replaceable parts program for self- maintainers. This program allows
customers who prefer to make their own repairs to order standard Armada components for
more convenient warranty service.
QuickRestore CDs, available for all Armada products should the user inadvertently delete any
of the original content of their hard drive.
Enhanced Technical Phone Support and Internet Support for improved quality and response
times, including a new Internet Service and Support site.
Warranty Extension services honored across European and North American countries.

Windows NT Compatibility

With today's new product introductions, Compaq extended its commitment to provide
leadership-class mobile support for the Microsoft Windows NT Workstation 4.0 implementation. 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 the Armada's industry-leading performance benchmarks with Windows
NT(E) make the Armada family a logical choice for business customers deploying Windows NT.
Windows NT is supported on all Armada products and is offered as a pre-installed option on select
Armada 7700 and 7300 models.

Company Background

Founded in 1982, Compaq Computer Corporation, a Fortune Global 200 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 $20 billion in 1996, 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 in North
America. Product information and North America reseller locations can be obtained by calling
1-800-345-1518.

Compaq North America is headquartered in Houston, Texas. Its products and services are sold and
supported through a network of more than 25,000 commercial and consumer marketing partners
across the United States and Canada.

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

-0-

(A) Battery life claims based on average usage and will vary based on configuration and usage
patterns.
(B) The K56flex protocol is designed to allow faster downloads from K56flex compliant
sources. Maximum achievable download transmission rates currently do not reach 56Kbps
and will vary with line conditions.
(C) 20X Max CD-ROM drive transfer rates may vary from 1200 to 3000 Kbps.
(D) All prices listed herein are estimated U.S. selling prices. Reseller prices may vary.
(E) In an October 1997 article entitled ''NT Notebooks Take Off'' from ZDNet, the Compaq
Armada 7730 running Windows NT ranked best in Windows NT application performance and
longest battery life of any other competing notebook considered in the evaluation. That is, the
Armada 7730 was 63 percent faster than IBM ThinkPad 760XD with over two and one-half
hours of battery life.

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