Compaq and Packard Bell settle patent litigation

Business Wire, June 18, 1996

HOUSTON--(BUSINESS WIRE)--June 18, 1996--Compaq Computer Corporation (NYSE:CPQ) and Packard Bell Electronics, Inc. announced today that they have settled all patent litigation between the companies and reached a patent license agreement.

Compaq had sued Packard Bell for patent infringement in November 1994 in federal court in Houston. Last month, Packard Bell's wholly owned subsidiary, Zenith Data Systems Corporation, sued Compaq for patent infringement in federal court in Delaware.

As part of the settlement, each lawsuit will be dismissed. Neither party admitted any fault in either case. The settlement will require Packard Bell to pay an undisclosed license fee to Compaq over the next five years. The terms of the settlement are confidential.

Compaq and Packard Bell each expressed satisfaction with the settlement, which marks the end of all current litigation between the companies.

Compaq Background

Compaq Computer Corporation is the world's largest supplier of personal computers, offering desktop PCs, portable PCs, servers and options. Founded in 1982, the company reported 1995 worldwide sales of $14.8 billion. Compaq products are sold and supported in more than 100 countries through Compaq marketing partners, and sold directly to customers through Compaq DirectPlus at 1-800-888-5858.

Compaq provides 24-hour customer support and can be reached through the Compaq forums on America Online, CompuServe, Internet (http://www.compaq.com) and Prodigy, or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518.

-0-

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

CONTACT: Compaq Computer Corporation

Nora Hahn, Mike Berman

713-514-0484

nhahn@bangate.compaq.com

or

Miller/Shandwick Technologies

Donna Ruane

617-536-0470

druane@millercom.com