Compaq Establishes Finance Company to Extend Customer Leasing and Financing Options

Business Wire, Jan 14, 1997

HOUSTON--(BUSINESS WIRE)--Jan. 14, 1997-- Compaq Computer Corporation (NYSE:CPQ), one of the world's leading computer companies and the leader in client-server-based open systems solutions, today announced the formation of Compaq Capital Corporation. The formation of this new company represents a major step in providing Compaq customers with a comprehensive set of financial product offerings that will meet the specific needs of their businesses and help lower the cost of ownership of advanced information systems. Product offerings are initially targeted for introduction in North America in early 1997.

"Compaq customers increasingly look to a single source for all their information technology needs during the ownership cycle," said Eckhard Pfeiffer, President and CEO, Compaq Computer Corporation. "Their requirements have moved beyond simply purchasing products to more demanding innovative financing alternatives, asset management, technology updating and disposal assistance. Compaq continues to develop the programs and partnerships needed to help our customers manage the cost of technology, and Compaq Capital Corporation will play a key role in achieving this objective."

"Compaq has used a constellation of industry partners to achieve world-class product leadership, and to expand its distribution and service offerings," said Earl Mason, Compaq's Senior Vice President and Chief Financial Officer, Finance and Administration, who has headed the formation of Compaq Capital Corporation. "Compaq plans to apply a partnership strategy in building Compaq Capital Corporation and its array of financial products by identifying partners who have the global presence and expertise to help the finance unit provide the broadest and most competitive mix of product offerings for our customers."

"We are pleased to have Irving Rothman join Compaq as President of Compaq Capital Corporation," said Mason. Rothman, formerly Group President at AT&T Capital Corporation, will report to Mason.

In his previous post at AT&T Capital, Rothman had leadership responsibility for six operating units, including four international divisions, for the company's vendors throughout the world. He also held a number of other positions with AT&T Capital including President, AT&T Credit Corporation; Executive Vice President and CFO; and Senior Vice President and Treasurer. Prior to joining AT&T Capital, Rothman held senior positions with other financial services corporations including Thomson McKinnon Securities and U.S. Leasing International, Inc.

Rothman, 50, holds an M.B.A. from Pepperdine University and a B.A. from Rutgers University.

Company Background

Compaq Computer Corporation, a Fortune 100 company, is the fifth largest computer company in the world and the largest global supplier of personal computers, delivering useful innovation through products that connect people with people and people with information. The company is an industry leader in environmentally friendly programs and business practices. Compaq is strategically organized to meet the current and future needs of its customers, offering Internet and enterprise computing solutions, networking products, commercial PC products and consumer PCs. As the leader in distributed enterprise solutions, Compaq has shipped more than a million servers. In 1995, the company reported worldwide sales of $14.8 billion. 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 http://www.compaq.com or by calling 1-800-OK-COMPAQ. Product information and reseller locations can be obtained by calling 1-800-345-1518.

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CONTACT: Compaq Computer Corporation

Yvonne Donaldson, 281-514-0484

ydonaldson@bangate.compaq.com

OR

Miller/Shandwick Technologies

Mike Deshaies, 617-536-0470

mdeshaies@miller.shandwick.com