Panasonic and Compaq Co-Develop World's First High Definition Digital Television Tuner-Decoder for Personal Computers

SECAUCUS, NJ and HOUSTON, TX (November 9, 1998) - Panasonic and Compaq Computer Corporation (NYSE: CPQ), two names that represent technological leadership, today announced the world's first digital television (DTV) tuner-decoder for personal computers. The two-card device enables computers to receive, decode and display digital television signals on the screen of a PC. Broadcasts of High Definition and digital TV signals began in major markets around the country on November 1.

Compatible with all of the approved Advanced Television System Committee (ATSC) digital broadcast formats, plus the existing National Television Standards Committee (NTSC) analog format, the new PC-DTV device leverages the computing power already in the PC to provide an alternative digital TV solution. The device will be demonstrated at the Panasonic booth (L-1014) at Comdex '98 in the Las Vegas Convention Center from November 16-20.

Panasonic Industrial Co. will initially market the device on an OEM basis to manufacturers, broadcasters, content creation studios, content developers and others with a stake in the developing DTV industry. The device will be manufactured by Matsushita Electronics Components Co., Ltd.

"Panasonic has led in the development of digital television, both in systems for broadcasters as well as digital television products for the home," said Jukka Hamalainen, president of Burlington, NJ-based Panasonic AVC American Laboratories, Inc., the company's U.S. digital TV laboratory. "This digital television tuner-decoder is a result of a collaboration between two global technology innovators. Leveraging the expertise of Compaq enabled us to bring this product to the market in record time."

"It was truly an exchange of know-how," said Trey Smith, vice president, Advanced Technology, Consumer Products Group, Compaq Computer Corporation. "Panasonic clearly understood HDTV and we already had a proven PC/TV architecture. Together, we developed this innovative device that allows PCs to become, in effect, high-definition televisions. We are excited to be a part of the global rollout of HDTV and will continue to develop industry leading solutions that meet the ever-changing needs of our customers."

About Compaq
Compaq Computer Corporation is a Fortune Global 100 company. Compaq is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com.

About Panasonic
Best known in the U.S. for its Panasonic brand, Matsushita Electric Industrial Co., Ltd.(NYSE: MC) is a worldwide leader in the development and manufacture of digital electronics and electric products for the home, office and industry. It is based in Osaka, Japan, as is its subsidiary Matsushita Electronics Components Co., Ltd., which manufactured the new PC-DTV device. Based in Secaucus, NJ, Panasonic Industrial Co., a division of Matsushita Electric Corporation of America, is the sales and marketing channel for electronic components to customers in North America.

Panasonic's development of HDTV and digital television has been centered on Panasonic AVC American Laboratories, Inc. Based in Burlington, NJ, the company developed the world's first single-chip, all-format, digital television decoder, which is incorporated in the new PC-DTV decoder device. Panasonic Consumer Electronics Company launched the nation's first HDTV-compatible projection TV set in August and in October was the first company to announce shipments of Digital TV set-top tuner-decoders. # #

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

For further editorial information, contact:
Compaq Computer Corporation Simon Eastwick 281-514-2702 simon.eastwick@COMPAQ.com

Panasonic Jim Reilly 201- 392-6067 reillyj@panasonic.com