PC and Consumer Electronics Industry Leaders Promote PC Theatre Initiative

Compaq and Intel Lead PC Industry in Working with Consumer Electronics Leaders to Bring Converging Technologies to the Home

HOUSTON – March 27, 1997 – Moving the evolution of home PC technology forward, Compaq Computer Corporation (NYSE: CPQ) and Intel Corporation today announced an initiative to establish open interoperability standards for the new PC Theatre category of products to the home. The two computer companies are working with other key leaders in the consumer electronics and computing technology industries, including Thomson Consumer Electronics (marketer of the RCA, ProScan and GE brands), Hitachi Ltd., Mitsubishi Electric Corporation, NEC Technologies Inc., Philips Electronics (marketer of Maganavox) and Toshiba Corporation.

The focus of the initiative regarding PC Theatre is to enable plug-and-play standards across the industry which will ensure compatibility, provide consumers flexibility regarding which vendors they choose and simplify component and product development. The companies supporting the PC Theatre initiative will work with existing standards organizations to develop open interoperability standards for the convergence of the PC and future audio/video technologies.

The PC Theatre is a new category of consumer entertainment devices that merge computing and traditional forms of media and entertainment content on large-screen displays. PC Theatre products will feature TV viewing capability, surround sound audio, DVD movies, wireless keyboards and mice and web browsing. They will also have the capability to integrate telephony and phone messaging, programmable control of consumer electronics devices like VCRs and CD "jukeboxes," high quality 3D graphics, social/multiplayer games and other forms of entertainment. uniquely suited for the power and interactivity of the PC and the home environment.

"The convergence of the PC and television technology is clearly the next phase of evolution for home PC technology," said Laurie Frick, Vice President, Consumer Emerging Markets, Compaq Computer Corporation. "The unique nature of the partnerships Compaq has forged with Intel, Thomson and other key companies will allow consumers to access the latest in digital home entertainment, while effectively providing choice and flexibility to consumers who want this new technology in their homes provided by companies they know and trust."

"The PC Theatre initiative will help ensure ease of use by consumers who will be getting new and better entertainment experiences in the family room," said Mike Aymar, Intel vice president, Desktop Products Group. "The full-function high-performance PC, including the PC Theatre, is an adaptable product that gives consumers value across a wide range of configurations and price points, and delivers the best experience for playing games, running multimedia titles, watching TV and controlling one's consumer electronics equipment."

Compaq and Intel's commitment to interoperability and relationships with key industry partners such as Thomson and others will enable the industry to move forward with the production of convergence products. Compaq, Intel and the key industry leaders are committed to working with sub-committees of the Video Electronics Standards Association (VESA) to define a final open interoperability standard.

Establishing open interoperability standards to define the display/system interface will be the first in a series of specification proposals meant to define the standards for convergence products for the living room. This interface allows large displays to connect with computers to deliver better picture quality and seamless integration with PC control devices. Once defined, the display/system unit interface will be brought before the VESA standards committee for approval. These new standards will define elements such as picture quality adjustments, color temperature and purity, audio control, control integration between the system unit and display and enhancement of power management.

Compaq 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. 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.

Intel Background
Intel is providing the building blocks at all levels of integration to enable the PC Theatre category of products. The PC Theater is an example of Visual Computing, which is the convergence of 3D graphics, video, and imaging technologies to deliver interactive, intuitive, life-like computing experiences to users. Intel's Visual Computing Initiative (V.C.I.) is the industry blueprint to drive the industry to the Visual Computing Platform. V.C.I. includes Intel's technology building blocks (processors, chipsets, peripheral products) which will deliver the core visual computing capabilities and Intel's broad enablement activities with the hardware and software industries to deliver V.C. platforms and content with breakthrough 3D, video and imaging capabilities.

About VESA
VESA is the international organization that sets and supports industry-wide electronic standards for the video, audio and graphics interface of computer designs.

VESA is committed to developing open, interoperable and international standards for the global marketplace, thus ensuring worldwide market growth. VESA, a non-profit corporations established in 1989, is headed by a board of directors representing a membership of 275 companies worldwide. For more information, or to arrange a press interview, please contact the VESA office at 408/435-0333. Visit VESA's web site at www.vesa.org to learn more about how VESA is working on standards today that will shape the technology of tomorrow.

* Other names and brands may be claimed as the property of others.