Compaq Computer Corporation and Subsidiaries - Page 9




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          Types of PCA's                                                              
               Compaq U.S. segregated PCA purchases into five different               
          categories of PCA's:  Processors, power supplies, memory boards,            
          video boards, and a catchall category entitled backplane/other.             
          At all sites, PCA's within each product category were built using           
          the same design guidelines, the same workmanship standards, the             
          same or virtually identical manufacturing equipment, the same               
          manufacturing process, the same materials purchased from the same           
          approved vendor list (AVL), and were tested using the same or               
          virtually identical test equipment and programs.  Within each               
          category, the only differences in the PCA's were the particular             
          components used on each individual PCA and the time required to             
          process the PCA on the manufacturing line.                                  
               With respect to power supplies, the global power supply                
          market was made up of two distinct market segments--custom power            
          supplies and commodity power supplies--and the industry generally           
          acknowledged that commodity power supplies were of lesser quality           
          with limited functionality.  Power supplies designed by Compaq              
          U.S. and Compaq Asia fell into the custom power supply market               
          segment.                                                                    
          Compaq Asia                                                                 
               In the mid-1980's, Compaq U.S. pursued material cost savings           
          allegedly available in Asian markets in both PC and PCA                     
          manufacturing.  Specifically, in 1984, petitioner began doing               





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