News release

Compaq's Enhanced Presario Desktops Offer Fun Features to Make Web Surfing Easier — and to Create and Share Home Movies

New Presario 5000 and 7000 PCs Feature Upgrades and Latest Moviemaking Software, Allowing Consumers to Better Pursue Their Creative Desires

As part of its launch of enhanced Presario 5000 and 7000 series Internet PCs, Compaq Computer Corporation (NYSE: CPQ) today announced the MyMovieSTUDIO Presario 7000 PC, featuring an award-winning package of moviemaking software. With the software available on the 7000 series today, some future editions also will feature the consumer debut of DVD-R, which will let moviemakers record their creations not only on hard drive, but also on DVD-R disc.

These new MyMovieSTUDIO models will be available beginning in March through Compaq's "Built for You" program and at participating retailers. In addition to the moviemaking software, the 7000 PCs — as well as upgraded models in the Presario 5000 series — feature a number of other enhancements giving consumers greater performance, creativity and value. And the introduction of the FS740, the first flat-screen monitor offered to consumers by a major manufacturer, means that you'll have the best setting on which to view your PC movies and other creations.

"Compaq truly expands the entertainment potential and the quality of consumer PCs with these offerings," said Sean Burke, Vice President, Presario Products Division, Compaq Consumer Group. "MyMovieSTUDIO, especially with the upcoming inclusion of DVD-R, bridges the gap between PC and pure entertainment technology. The upgraded Presario 7000 and 5000 desktops bring the very latest in entertainment, speed and performance to our customers; and the FS740, the new flat screen monitor for consumers, provides unprecedented viewing quality."

The Compaq Presario 7000 Series: A Hollywood Editing Studio at Your Fingertips

The Presario 7000 series MyMovieSTUDIO includes a first-of-its-kind package of the latest editing and authoring software for inventive, professional-quality home movies. And the upcoming inclusion of DVD-R on "Built for You" models featuring Intel Pentium 4 processors ⁽¹⁾ means that you can record and share your cinematic creations with friends and loved ones, who have DVD players on their PCs or television sets ⁽²⁾.

How does it work for would-be film directors? Through its state-of-the-art IEEE 1394 high-speed connection, MyMovieSTUDIO transfers video from your digital camcorder ⁽³⁾. For editing, Studio DV software features a drag-and-drop storyboard to move and cut scenes, voiceovers and custom soundtracks, professional-style titles, and scene transitions. "DVDit!" DVD authoring software — new to consumer PCs — allows you to publish your movie on DVD by adding personal video clips and graphics, and interactive buttons and links between scenes and other movies. When your movie is complete, you can record it on a DVD-R disc. The DVD-R drive also reads DVD-ROM and CD-ROM and can record audio and other data, just like CD-R and CD-RW, for optimal compatibility.

The basic configuration ⁽⁴⁾ — available early 2001 through Compaq's "Built for You" program — includes the moviemaking software and DVD-R described above, along with a number of other features. With prices starting at $2,399, you don't need blockbuster budgets to create your own hit movies.

Retail models — which include the editing software and the QuickCam Web, but not DVD-R or Pentium processors — will be available early March at participating retailers. The retail model also comes outfitted in an eye-catching new MyStyle Accents Caribbean blue color kit ⁽⁵⁾, so your home movies aren't the only things looking good on the MyMovieSTUDIO PC. For more information about the Compaq Presario 7000 MyMovieSTUDIO desktops, please visit http://www.compaq.com/athome/7000series.

Affordable Inspiration: The Presario 5000 Series Offers Fun Features at Great Prices

The Presario 5000 series Internet PCs have made Web surfing easier and more enjoyable than ever — and recent enhancements bring a whole new set of features to the line. A recordable CD-RW drive on most models allows the user to burn custom CDs from his or her personal library or back up large files to take along. A dedicated graphics card assures consumers of engaging, high-quality graphics. Upgraded processors, including the AMD Athlon 1200 MHz (1.2 GHz) on some models, bring a new level of speed and performance to the 5000. And a recordable CD-RW drive on most models allows the user to burn custom CDs from his or her personal library or back up large files to take along — a feature that's convenient and a good value, with prices on the 5000 series ranging from $649 ⁽⁶⁾ to $1,299. For more information about the Compaq Presario 5000 series desktops, please visit http://www.compaq.com/athome/5000series.

In addition, each 7000 and 5000 series model features four USB ports (two each in front and back), Microsoft Windows Millennium Edition (Me) software, Compaq's USB Internet keyboard with one-button access to the most popular and useful sites on the Web and a free MyStyle Accent Color Kit ⁽⁷⁾.

The enhanced Presario 5000 series and 7000 series, including MyMovieSTUDIO, is available in early March. The 5000 series is available for purchase today through Compaq's "Built for You" kiosks at participating retailers, on Compaq's consumer Web site at http://www.compaq.com/athome, and by calling 1-800-888-0220.

Great Creations Deserve a Great Setting: The Compaq FS740 Flat Screen Multimedia Monitor

Compaq's new FS740 multimedia monitor, the first consumer flat-screen offered by a major manufacturer, is the perfect showcase for home movies and all your PC creations — adding vibrancy to everything you do on the Presario. The flat screen means better image quality, reduced glare and improved (0.25mm) dot pitch.

The FS740 will be available January 7 and comprises a 16-inch viewable area, multi-frequency monitor and JBL Platinum Series speakers with digital audio player port that allows you to plug-and-play MP3 or similar technology directly from your desktop speakers. Additional features include an integrated microphone, dot pitch and digital onscreen display controls. At $299 ⁽⁸⁾, this state-of-the-art monitor keeps your budget looking good, too. For more information about the Compaq FS740 multimedia monitor, please see http://www.compaq.com/athome/fs740.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.