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Compaq not tired of cutting prices

In its latest gambit to maintain price leadership, Compaq today cut prices as much as 10 percent on selected server models and began offering a "premium free" upgrade for its rack-mounted servers.

In its latest gambit to maintain price leadership, Compaq today cut prices as much as 10 percent on selected server models and began offering a "premium free" upgrade for its rack-mounted servers that will spare users additional costs when they move up to Pentium Pro processors.

The "premium free" upgrade means that U.S. customers who buy ProLiant 4500 rack-mounted servers between March 1 and June 30 can get a Pentium Pro upgrade kit for no extra charge when they become available. The program is intended to appease disgruntled users who have complained that it costs as much to upgrade an old system as it does to buy a new one.

"The 'premium free' upgrade assures customers that the total cost of buying a server now, and upgrading it to Pentium Pro technology later, won't exceed the cost of a comparable Pentium Pro server when it becomes available from Compaq," the company said.

ProLiant 4500 rack-mounted servers covered by this program can be upgraded to Pentium Pro technology between January 1 and June 30, 1997.

Also today, Compaq made the third of a series of price cuts for its new systems. This time, the company is chopping prices by as much as 10 percent on Prosignia 500 and Compaq Proliant 1500 Servers.

The cost of a Compaq Prosignia 500 with a 150-MHz processor, for example, will drop from $4,439 to $3,999, while the price of the Compaq Proliant 1500 with a 166-MHz Pentium processor will fall from $7,549 to $7,249.

Compaq also announced today:
--a low-cost Pentium Pro trade-in program for ProLiant 4500 tower systems purchased between March 1 and June 30.
--a free processor board valued at about $5,000 with all Compaq ProLiant 4500 100 MHz and 133-MHz Pentium models purchased in the United States between March 1 and June 30.

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