News release

Compaq Helps Education Based Housing Foundation Address Digital Divide Issues in Texas

Compaq Provides Notebook Computers for Pilot Project that Places Web-Based Interactive Systems in Low-Income Housing

In continuing efforts to close the gap between those with access to new technologies and those without, Compaq Computer Corporation (NYSE: CPQ) today announced its participation in the Education Based Housing Foundation project as a private-sector partner.

The Education Based Housing Foundation is a consortium of affordable housing developers. The consortium in conjunction with a number of private-sector partners is conducting a pilot program across three sites in Texas that makes technology and education available to low-income families in their homes.

The pilot phase of the project is being conducted at two sites in Texas: Houston and Hempstead. The multi-family housing facilities have been built using tax credits and house families of moderate to low income. Five families have been selected at each site for training to use the Internet and other educational software for a wide range of educational programs.

These programs are in conjunction with local providers, including the Houston Independent School District, Prairie View A&M University and the University of Houston. The educational materials are sent to a satellite network operation center (NOC) station in California operated by another Foundation partner, Vitacom Systems. The material is uplinked at the NOC and multi-cast to receiver dishes Vitacom has installed at the three facilities.

Compaq donated twenty iPAQ desktops, with Celeron 500 processors, 24X CD-ROM and LS120 drives; twenty S710 17-inch monitors, and twenty USB 56K modems. In addition, the Foundation has established computer labs powered by Compaq iPAQ desktops at each facility where participants can receive technology training. An on-site daycare is provided for participants' children who also have access to the lab facilities.

"Compaq has a long history of investing resources in schools and communities with an emphasis on technology, but we realize we cannot solve this problem alone. We look for leading-edge projects such as the Education Based Housing project, where we can partner with other industry leaders to maximize resources," said Jim Weynand, Vice President, Government and Education of Compaq Computer Corporation. "A major priority, given our presence as a technology leader, has been providing support through technology and training. We are very excited to be a part of this project and feel certain that it can have a positive impact on addressing technology access issues in communities."

For more information on Compaq and its Inspiration Technology please visit http://www.compaq.com.

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.