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Compaq Announces Lower-Cost PC

June 16, 1999

HOUSTON (AP) _ Compaq Computer Corp., firing a salvo in the low-cost PC market, unveiled a basic Presario PC that will sell for $599, $100 less than the company’s current entry-level model.

The self-described ``barebones″ Presario 5300 line was among the two new lines of desktop computers announced Tuesday along with a new notebook series and new models for three current notebook lines.

All new Compaq Presario products will be bundled with Internet access software for three services, including the company’s new Compaq.net, a network with more than 700 local access phone numbers.

The price of the Houston computer maker’s entry-level PC will be reduced to $599 and it will be offered in a package that includes a printer and monitor for less than $899.

Compaq.net will be offered at less than $12 a month for unlimited access. Compaq PCs will also be equipped with software for America Online Inc. and NetZero Inc., a free, advertising-supported service.

New keyboards will add seven new keys to direct Internet functions, including an instant e-mail button and an instant search button which will link to the Alta Vista Web site.

The Compaq Home Phoneline Networking technology will be standard on many models. The system enables several family members to access the Web at the same using one phone line and one Internet account.

Some new models will also support broadband Internet access, allowing consumers to choose ultra-fast cable, DSL or traditional phone line connections.

Also on Tuesday, Dell Computer Corp., based in Round Rock, Texas, introduced its low-cost Dimension L series PC for $899, which includes a monitor and software package.

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