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Compaq Forms Workstation Division

August 5, 1996

HOUSTON (AP) _ In another sign that personal computers are competing with engineering workstations in some settings, Compaq Computer Corp. announced Monday a division to develop and market its most powerful workstation machines.

The machines are designed to compete with workstations by manufacturers such as Sun Microsystems Inc. and Hewlett-Packard Co., which market chiefly to engineering businesses, universities and other research facilities.

As it does for ordinary PCs, Compaq will rely on Intel Corp. microprocessors and Microsoft Corp. operating software. It will get Intel’s advanced Pentium Pro chip and Microsoft’s newly-revised Windows NT programs for the workstations.

The machines will cost $7,000 to $30,000, compared to $2,000 to $6,000 for Compaq’s regular desktop PCs.

Compaq also announced relationships with Elsa Inc. and Intergraph Computer Systems for 3D graphics components and software.

The first products from the workstation division are expected to go on sale late this year.

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