Compaq, API, and Samsung Set Long-Term Growth Strategy for Alpha 


Houston, Dec. 13, 1999 -- Compaq Computer Corporation (NYSE: CPQ), Alpha
Processor, Inc., (API), and Samsung Electronics Co., Ltd. today announced the
expansion of their relationship with the signing of a memorandum of
understanding will result in a $500 million combined investment to advance
Alpha market opportunities and technologies.

Building upon recent announcements illustrating each company's commitment to
Alpha, the companies are making unique and joint technology contributions as
well as development and marketing investments to expand opportunities in
growing and emerging markets for Alpha.

The investment commitment by Compaq, API, and Samsung will extend Alpha's
leadership in enterprise environments including a significant focus on
NonStop(TM) eBusiness solutions. Through the technology and product expertise
of the three organizations, this agreement helps expand Alpha into new growth
markets such as fixed-function servers, network appliances, and Internet
network infrastructure.

"API, Compaq, and Samsung recognize the business growth potential for Alpha
and will leverage next-generation Alpha performance solutions to make
technology advances that ensure its leadership position," said Dr. Daeje Chin,
executive vice president and chief technology officer at Samsung Electronics
and chairman and chief executive officer at API. "Over the next decade this
collaboration will continue to expand and thrive. For example, we believe this
agreement will lead to additional investments by these three companies
exceeding $1.5 billion during the next five years."

"Compaq continues to build its worldwide Internet infrastructure leadership
and Alpha technology is a strategic element in that effort," said Michael
Capellas, Compaq President and CEO. "As the industry's most powerful 64-bit
processor, Alpha is one of the key technologies for high-performance computing
and NonStop(TM) eBusiness. With API and Samsung, we are jointly reinforcing
our long-term commitment to Alpha and we are committed to expanding Alpha in
target markets."

Areas of focus aimed at expanding the Alpha market include:

- Investment by Samsung in semiconductor manufacturing process advancements
  such as copper interconnect, low-K dielectric and silicon-on-insulator
  technology.
- Previously announced incremental funding by Compaq in Tru64 UNIX/Alpha
  market development. This targets a 400% increase in ISV support funding,
  doubling of pre/post sales support resources, and an aggressive, worldwide
  marketing campaign.
- Business development investment which will enable Alpha to penetrate new and
  emerging markets such as fixed-function servers, network appliances, and
  Internet network infrastructure. As owner of the technology, Compaq
  continues demonstrating its commitment to broadening the market for Alpha
  with the expansion of the Alpha architectural license to include API.
- A framework for implementing next-generation Alpha EV7 technologies by
  Samsung and API.
- Commitment to Linux with ISV partnerships such as Cygnus which will result
  in a set of Alpha-based tools for the Open Source community that will
  significantly increase the number of Alpha Linux applications. Alpha is
  currently providing leading price/performance in the entry point to the HPTC
  market with Linux-based Beowulf clusters.
- Collaboration between API and AMD on related technologies, such as Lightning
  Data Transport (LDT), which will expand reach of Alpha in the market.

Network Appliance, an example of a company building network file servers and
Internet cache appliances, is basing its products on Alpha technologies.
"Leveraging cutting-edge Alpha technology, NetApp can offer customers
enterprise solutions that help them simplify complex data management. For high
bandwidth, high performance workloads on our appliances, the power of Alpha
provides a significant competitive advantage," said Dan Warmenhoven, President
and Chief Executive Officer at Network Appliance, Inc. "The commitment to
Alpha by API, Compaq, and Samsung is encouraging and indicates that its future
is solid."


About Alpha Processor, Inc. (API)

API, located in Concord, Massachusetts, is dedicated to the development and
marketing of Alpha - the world's fastest 64-Bit microprocessor - and related
technologies. As an independent Alpha architecture licensee, Alpha Processor,
Inc. engineers microprocessors, Alpha platforms and leading edge system logic.
The company is committed to delivering the industry's best price/performance,
open-standard platform solutions to its customers and system partners
worldwide.

For additional information on these products, the company or for the sales
contact nearest you, please consult Alpha Processor Inc.'s Website at
www.alpha-processor.com.