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May 5, 1994

COMPAQ PICKS PICTURETEL AS VIDEOCONFERENCING MATE

By CBR Staff Writer

Compaq Computer Corp is determined to make the transition from a straight supplier of standard personal computers into a personal computer manufacturer that also offers a string of unique related products that differentiate it from the herd. In its latest diversification, it has signed a memorandum of understanding with PictureTel Corp, Danvers, Massachusetts to establish a five-year strategic alliance for the design and manufacture of standards-based personal conferencing products. The pair aim to have their first products on the market worldwide by 1995. They will be compliant with the ITU-TSS-(a) H.320 telephony standard and will be able to communicate with more than 15,000 room-based videoconferencing systems already in use. Compaq brings to the party its engineering expertise in audio, graphics and system integration, presence in distribution channels and ability to manufacture in high volumes; and PictureTel expertise in standards-based compression algorithms, high-end audio technology and worldwide telephone integration. Windows-based collaborative computing software from PictureTel will also be incorporated into the jointly-developed Compaq products, enabling two people in a conference call to have the same document on their screens, with each able to make changes and see the ones made by the other party to the call.

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