News release

Compaq's Enhanced Presario Notebooks Offer DVD/CDRW Combo for Greater Convenience and Flexibility

Upgraded Notebooks are Offered at Lower Prices and Include Other Enhancements for Better Performance

Compaq Computer Corporation (NYSE: CPQ) today announced the inclusion of a combination DVD/CDRW drive on selected Presario notebook PCs, when purchased through Compaq's "Built for You" program. This addition to Compaq's acclaimed portables makes the Presario notebooks among the first to offer DVD/CDRW to U.S. consumers - and will be available beginning in late January.

Compaq's portable PC lines were designed for users with varying needs - covering a range of prices and capabilities. In late January, the 1800 series models will be available with a combination DVD/CDRW drive - when purchased through Compaq's "Built for You" program - allowing consumers the convenience and flexibility to watch DVD movies and save music or hundreds of megabytes of data on CD with only one drive. The 1700 series also will be available with the combo drive in coming weeks. The "Built for You" program allows consumers to customize their Compaq PCs to meet their specific needs and gives them access to the latest technology as soon as it becomes available.

"Compaq is pleased to announce enhancements to our award-winning line of Presario notebooks, including availability of a DVD/CDRW combo drive in the U.S.," said Sean Burke, Vice President, Presario Products Division, Compaq Consumer Group. "State-of-the-art technology like the DVD/CDRW combo drives, core feature enhancements and groundbreaking prices confirm our commitment to offering our customers the very best in performance and pricing."

To further improve upon its award-winning notebooks, Compaq has enhanced other features, including faster processors, larger displays and increased hard disk drive capacities on selected Presario 1200, 1700 and 1800 series models, and is offering them at the lowest prices ever.

Compaq Presario 1200 Notebooks: Compaq's Value Line - at Even Better Prices

For consumers seeking fully loaded value, the Compaq Presario 1200 line fits the bill. The Presario 12XL400 - priced at $1,199 ⁽¹⁾ - includes a 13-inch HPA screen, Intel Celeron 700 MHz processor, 64 MB RAM, a 10 GB hard drive, 24X CD-ROM, a 56K modem and Windows Millennium Edition (Me) software.

The 12XL401 includes a 13.3-inch TFT screen, Intel Celeron 700 MHz processor, 64 MB RAM, a 15 GB hard drive, 8X DVD, a 56K modem and Windows Me at a price of $1,499 ⁽¹⁾.

The 12XL410 features a 13.3-inch TFT screen, Intel Pentium III 700 processor, 128 MB RAM, a 15 GB hard drive, 8X DVD, a 56K modem and Windows Me and is priced at $1,699 ⁽¹⁾.

For more information about the Compaq Presario 1200 notebooks, please visit http://www.compaq.com/athome/1200series.

Compaq Presario 1700 Notebooks: Power and Portability

At 5.2 pounds and 1.3 inches thick, the Presario 1700 series is Compaq's most portable consumer PC, packing lots of power in a thin and light package. The incorporated hot swappable Future Bay™ design offers simple device customization for on-the-go productivity. The 17XL460 includes a 14.1-inch TFT screen, Intel Pentium III 700 MHz processor, 128 MB RAM, a 15 GB hard drive, 8X DVD, a 56K modem, 10/100 NIC and Windows Me - at an incredibly low $1,999.

For more information about the Compaq Presario 1700 notebooks, please visit http://www.compaq.com/athome/1700series.

The Ultra-Powerful Presario 1800 at an Exceptional Price

Compaq's most powerful consumer notebook, the Presario 1800, is now available for $2,199 - the lowest retail price ever offered on a Compaq 15.1-inch notebook. In addition to the 15.1-inch TFT screen, the 18XL380 includes an Intel Pentium III 700 MHz processor, 128 MB RAM, a 20 GB hard drive, 8X-DVD, a 56K modem, 10/100 NIC, TV-Out and Windows ME. The 1800 series also incorporates innovative "Disqplay²" technology with enhanced audio control features that lets you listen to audio CDs without powering up the system.

For more information about the Compaq Presario 1800 notebooks, please visit http://www.compaq.com/athome/1800series.

Accessorize Your Compaq Presario Notebook for Safety and Value

To complement these great notebook values, Compaq is offering its Travel Package accessory kit for $99 ⁽²⁾, which includes a Compaq Value Case, a Compaq AC adapter, a cut-resistant Targus security lock and an APC SurgeArrest notebook protector. These extras will make traveling with your Presario notebook even easier and safer. The Travel Package is available at http://www.compaq.com/athome or at "Built for You" kiosks at participating retailers.

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.