Compaq Launches Aggressive Pricing Strategy for Networking Products; Sets the Pace for Industry-Leading Price Performance

Business Wire, March 26, 1996

HOUSTON--(BUSINESS WIRE)--March 26, 1996--In a move that clearly indicates its strategy for achieving price/performance leadership in the internetworking marketplace, Compaq Computer Corp. (NYSE: CPQ) today announced price reductions ranging from 10-51 percent across the Compaq Netelligent(TM) family of networking products. The price reductions announced today are effective in North America and Latin America only and pertain to products currently on the market and previously sold under the ThomasConrad and NetWorth brands. Similar price reductions will be taken as Compaq rolls out the Netelligent product line around the world. The price of Netelligent products announced to the market today reflects the aggressive pricing strategy represented by the North America price reductions. (See related release: Compaq Launches Netelligent Networking Product Line, Reduces the Cost and Complexity of Networking)

Prices on Netelligent repeaters were reduced an average of 32 percent. Netelligent Fast Ethernet repeaters and switches, the fastest growing product segments of the internetworking market, were reduced an average of 35 percent. These price reductions, which are effective immediately, position Compaq Netelligent products at a 5-20 percent price advantage over comparable competitive products.

"Setting a new price/performance standard across the spectrum of products in the internetworking marketplace is a key Compaq objective," said Doug Pushard, vice president, Internetworking Products Group, Compaq Systems Division. "We are committed to setting this standard because it helps customers lower their total cost of network deployment and operation. We're also committed to delivering this new price/performance standard while maintaining and enhancing our product quality, manageability, ease-of-use, performance, service and distribution."

Price Reductions

Prices listed in the table below are estimated selling prices. Reseller prices may vary. This table includes a representative sample of today's price reductions.

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