In September of 1997 Compaq led the industry by introducing the first truly affordable PC DVD solution. DVD is the media format that takes PC multimedia software to the next quantum leap. Now you can watch full-length movies and play the new games enhanced for DVD. With its design improvements in data formatting and encoding, DVD disc technology offers the multimedia PC world a much richer and more satisfying video and audio experience.

The Compaq DVD solution is a combination of a second generation DVD drive; a new industry standard software solution (Direct Show) and hardware motion compensation from ATI gives Compaq the best DVD solution in the industry. This DVD solution also features the JBL Virtual Theater to immerse consumers in realistic 3-dimensional sound. This solution is capable of video playback of movies and music videos at a full-frame rate. The 3D graphics controller enhances software performance and the use of optimized drivers and will deliver smoother, full motion, high-resolution video playback. The inclusion of the second generation drive benefits the consumer by providing CD-ROM playback at speeds of up to 20X and also provides the ability read CD-R (CD-Recordable) discs, thus providing greater compatibility with all CD formats.

Compaq is leading the effort to be 100% compatible with the upcoming Windows 98 operating system, by delivering a Direct Show solution to provide consumers with the true promise of DVD. This Direct Show DVD solution is a 32-bit high performance architecture and is the standard interface and software drivers required to write feature rich DVD media applications. This new technology will enable consumers to fully appreciate the interactive features of DVD on Windows today, and gain additional features on Windows releases in the not too distant future.

To further the Compaq commitment of providing the best DVD experience, Dolby Digital trademarked sound system is incorporated into the DVD solution. This exclusive Dolby Digital trademark provides crystal clear digital surround sound. Left, center and right channels in front of you provide precise, clear positioning of dialogue. Separate or "discrete" left and right surround channels on the side and in the rear immerse you in the film with atmospherics and ambient sounds. The JBL VirtualTheater, which is also provided in the Compaq DVD solution, allows this full five-channel experience through only two speakers.

The JBL 3D VirtualTheater� effectively recreates the original movie-going experience when watching movies encoded in Dolby Pro Logic or the latest digital AC-3 soundtracks. This 3D-surround sound provides the effect of sound in front, from left to right and/or through the consumer. As a result, consumers can click on the JBL 3D VirtualTheater icon from the Compaq DVD player to hear incredible surround sound that is precisely defined in space to a degree that even the best home theater can't match.

Probably one of the most significant improvements over CD-ROM is the increased data capacity that a DVD disc provides. An additional enhancement of the second generation drives includes higher transfer rates of 2,705KB/s compared to 1,352KB/s for the first generation and the ability to read CD-ROM media at 20X speeds. This translates to a constant angular velocity transfer rate of 3.0MB/s versus the 8X CD-ROM speed of the first drives which transferred CD-ROM data at a rate of 1.2MB/s.

DVD�s increased high-density storage capacity opens an entirely new world for multimedia software and will make multi-CD applications (such as 5 or 6 CD-ROM games) the dinosaurs of the multimedia world. Another important feature to many PC consumers is that DVD is backward compatible to read CD-ROM discs. This means that users will be able use their current applications, games and music that are on CD and run them on a DVD drive with no performance degradation.

Compaq�s DVD solution utilizes a DVD navigator and GUI manager to navigate users around DVD software titles. While many applications and games will run similar to menu driven CD games, some titles, like movies, will require navigation through the various options within the title. Since DVD offers a much more robust multimedia platform, consumers have the potential to use features never before seen on traditional CD-ROM titles. In addition to the traditional play, stop, pause functions, new features will include menu selection for subtitles, audio tracks and viewing angle options. Other features include parental control and language selection. DVD provides such a robust platform that consumers will actually be able to choose, from a limited selection, in what language they want to hear their movie. Or choose in what language they want to see the subtitles. Eventually, when movie producers incorporate it, consumers will be able to choose the viewing angle in which they watch a particular scene. At some point in the future DVD will allow users to pick the ending they want to see in a movie. With DVD the possibilities are nearly endless.

This Direct Show DVD solution will enable consumers to fully appreciate the interactive features of DVD on Windows today, and gain additional features on Windows releases in the not too distant future. Using this industry standard, Compaq is able to provide all of the tools needed to take advantage of the new and exciting DVD games and movies.

Play DVD titles with full screen and full motion. Consumers can play the latest games and watch DVD movies with the Compaq DVD Player combining MPEG2 and Dolby Digital Surround Sound.

Demonstrate DVD title playback. Ensure that the video shows smooth, full motion, high-resolution video playback. Use the DVD player (navigator) to give examples of DVD features not available on today�s CD-ROMs. Play scenes like the airplane scene from James Bond�s "Golden Eye" or any action scene from "The Fifth Element" to show off Dolby Digital virtualized through two speakers using JBL 3D VirtualTheater as well as the incredible video frame rate and clarity of MPEG2 playback. Also show the Main Menu�s language capabilities and subtitle features.