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To: PCSS who wrote (49620)2/25/1999 10:45:00 AM
From: Elwood P. Dowd  Read Replies (1) | Respond to of 97611
 
Hardware stocks hit on PC price note
Merrill analyst points to revenue trend over unit growth

By Emily Church, CBS MarketWatch
Last Update: 10:00 AM ET Feb 25, 1999
Movers & Shakers
Futures Movers

NEW YORK (CBS.MW) -- Computer hardware stocks fell 1.7 percent
Thursday after an influential Merrill Lynch analyst raised the prospect of a PC
price war.

In a note to clients, Steven Milunovich cast the
spotlight on top four PC makers Dell Computer
(DELL), Compaq (CPQ), Hewlett-Packard (HWP) and
IBM (IBM).

"We're concerned that vendor's growth objectives the
next few years will be hard to achieve, perhaps
resulting in pricing pressure," Milunovich said.

Even as unit growth looks to be around 15 percent for
the next few years, the real issue for PC makers is
the likelihood of falling prices, he said.

"The bigger change is in declining average selling
prices (ASP) the past two years," he said. Revenue
growth was just 6 percent in 1997 and 1 percent last
year, according to Dataquest, he said.

"Our concern is that the recovery in ASPs predicted
beyond 1999 may not occur, causing disappointing
dollar growth for the vendors and the onset of price
wars.

"If the industry dollar growth remains in the low-to-single digits, will the top
vendors meet their aggressive targets? Probably not," he said.



To: PCSS who wrote (49620)2/25/1999 10:47:00 AM
From: Elwood P. Dowd  Respond to of 97611
 
Thursday February 25, 10:18 am Eastern Time

Company Press Release

Compaq Announces Initiatives Supporting
Windows NT Application Server
Technologies for the Enterprise

HOUSTON--(BUSINESS WIRE)--Feb. 25, 1999--

Editors' Summary:

-- Opens worldwide network of nine Architecture Services Labs to help customers design and
integrate applications based on Microsoft Application Server Technologies

-- Adds two Compaq COM+ and TP Expertise Centers in US and Ireland supporting Microsoft
Application Server Technologies

Compaq Computer Corporation (NYSE:CPQ - news) today announced a powerful set of services and
programs to provide large enterprises with the capabilities and solutions to take advantage of Windows
NT as the application server for the enterprise.

Compaq is the first vendor to establish a network of worldwide Architecture Services Labs for Microsoft
application server technologies, the core of Microsoft Windows Distributed interNet Applications
(Windows DNA) architecture. Compaq's new labs will enable corporate development and management
teams to understand how Microsoft application server technologies can respond to their business
needs, with the emphasis on the rapid development and deployment of Windows NT applications.
Compaq also announced a commitment to train 200 Compaq Solutions Architects for Microsoft
Technologies (CSA/MT) with specialist training in Microsoft application server technologies by
December 2000. These 200 architects extend Compaq's leadership in Microsoft technology expertise,
which includes 2500 Windows NT certified professionals and 15,000 Microsoft-trained professionals.

Compaq has selected New York, the UK, and Singapore as locations for its first three labs, with plans
to expand quickly to other sites in key business centers. Consultants from Compaq Services and
Microsoft will staff each site. The Compaq Architecture Services Labs will provide an important
development step in delivering large, complex projects. Customers working in small teams will typically
learn how to apply Microsoft application server technologies to their evolving business needs. The labs
offer an environment to test run applications and rapidly design a solution roadmap or 'proof of concept'
that corresponds to an organization's specific system environment.

''Our Architecture Service Labs will be the delivery vehicle of choice, providing enterprise-ready
architecture for applications based on Microsoft Application Server Technologies,'' said Steve Mahoney,
Vice President of Compaq's Application Integration Services Practice. ''With decades of real-life
experience in the development and integration of mission critical applications, a global network of
Architecture Service Labs, and newly formed corps of CSA/MT professionals, Compaq will be the
leading integrator of applications for the Windows platform in the enterprise.''

''Microsoft is pleased at Compaq's investment in these Architecture Service Labs and training, as a part
of their ongoing support for the Microsoft application server technologies,'' said Brad Chase, Vice
President, Developer Relations and Marketing at Microsoft. ''The market for skills with the Microsoft
application server technologies is exploding, and Compaq has taken a real lead in this area.''

Compaq's experience in integrating solution components for the enterprise, including recent upgrades to
BusinessBus, Compaq's Enterprise Application Integration software, which now supports Microsoft
application server technologies and Windows DNA, using Microsoft Message Queuing Server (MSMQ),
adds to the extensive capabilities of the architecture service labs.

Merrill Lynch is one of the first organizations to utilize the new service lab in New York. ''These Labs
could provide an important continual service in our plans of moving our organization forward in deploying
new applications,'' said Andrew Brown, Director within Enterprise Technology Service for Merrill Lynch.
''Immersing our staff in both technology and architecture in a compact session quickly achieves our
goal of building more responsive business solutions within a sound architecture framework.''

Compaq COM+ and TP Expertise Centers

Compaq also joined with Microsoft today to announce the establishment of Compaq COM+ and
Transaction Processing Expertise Centers, with initial locations in Littleton, Mass. and Dublin, Ireland.
These centers will provide assistance for partners, solution providers, and large-scale customers
deploying software built on Microsoft application server technologies. With a focus on application design
best practices, these centers will ensure scalability, reliability and high availability, in conjunction with
Compaq's Enterprise Application Server engineering products, providing added value for the Microsoft
environment to address these key enterprise requirements.

''Compaq's expertise in designing, deploying, and managing large-scale systems in field-proven data
center environments is brought into these centers for the benefit of partners and customers desiring the
ease of use, integrated services and tools, and low total cost of Microsoft application server
technologies,'' said Dave Rodgers, Vice President of NT Programs, Compaq. The centers work directly
with partners and solution providers, and with Compaq Services, in support of customer engagements.

''Compaq is serious about establishing itself as the premier solution provider for developing enterprise
mission critical applications using Microsoft application Server technologies,'' said Joe Maloney, Group
Product Manager, Platform Marketing at Microsoft. ''Judging by their commitment, and investment in
these centers, there is little question in our minds that Compaq has what it takes to lead in deploying
solutions based on Microsoft application server technologies.''

Compaq and Microsoft - Partnering in the Enterprise

Businesses that need comprehensive solutions for their enterprise can gain competitive advantage by
leveraging two distinct relationships between Compaq and Microsoft. Microsoft has endorsed Compaq
as the first worldwide Prime Integrator for Windows NT, because Compaq can provide customers
one-stop shopping and a single point of contact to design, develop, implement and manage
comprehensive information technology solutions. Compaq and Microsoft also work closely to address
customer business needs through the Frontline Partnership. This alliance represents nearly two
decades of experience in developing and delivering new technology, service offerings and increased
service capacity to address business needs involving infrastructure, business intelligence, messaging
and collaboration, Internet/intranet and business critical computing.

Company Background

Founded in 1982, Compaq Computer Corporation is a Fortune Global 100 company. Compaq is the
second largest computer company in the world and the largest global supplier of personal computers.
Compaq develops and markets hardware, software, solutions, and services, including industry-leading
enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication
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 are
available at compaq.com.

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

Contact:



To: PCSS who wrote (49620)2/25/1999 3:39:00 PM
From: Lynn  Read Replies (2) | Respond to of 97611
 
Michael**OT**

Good point. I just tried to visualize it and while composing this reply...BAM, instant disconnection from the server followed by, "We're sorry, all circuits are busy right now. Will you please try your call again later" when I tried to reconnect. Someone must have tapped my brain, via my keyboard, obtained a visual image, and started an avalanch of calls to friends, overloading the entire ex-NYNEX zone of Bell Atlantic:

El and his wife walk into the dining room of their club. El is looking especially smart in his new, immaculately tailored, hand stitched, navy, cashmere blazer. So far, so good--still on-line, Bell Atlantic lines fine.

It must have been the next image: the embroidered family crest on the breast pocket of the blazer. Or, maybe it was a combination of the crest and El telling the waitress, "I'll have the lamb shanks."

Lynn